17 Mar 2022
Statement from TM on Government's decision to retain Single Wholesale Network (SWN) for 5G
1. TM welcomes and supports the Government's decision to continue with the Single Wholesale Network (SWN) model for the deployment of 5G in the country. We believe this reflects the national aspiration for an inclusive digital Malaysia.
2. The SWN model reflects the shared responsibility to meet the collective objectives of 5G for Malaysia:
- Telcos to focus on investing and developing innovative 5G products and solutions for end customers.
- DNB shall focus on network-build towards faster rollout of coverage and capacity in a cost efficient manner. TM will continue to provide the fiber backhaul as committed in the signing of the agreement with DNB on 16 Dec 2021. This is another example of public-private partnership in the rollout of critical telecommunications infrastructure to boost economic development and enhance the well-being of Keluarga Malaysia.
3. We look forward to rolling out 5G-enabled products and solutions to our unifi and TM ONE customers. As such, we are currently undertaking internal customer and network trials to bring an improved convergence proposition of fiber plus 5G services to our unifi and TM ONE customers. This is subject to finalising our wholesale agreement with the DNB.
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TM IS SUPPORTIVE OF INITIATIVES THAT ENHANCE THE BENEFITS OF 5G; HAS VAST FIBRE COVERAGE TO SUPPORT ITS IMPLEMENTATION
TM acknowledges the decision made by the Government on the 5G dual network. We remain supportive of initiatives that enhance the benefits of 5G technology for the rakyat, businesses, and the nation as a whole. We trust this will drive Malaysia's digital transformation, advancing connectivity, innovation, and economic growth across sectors. As Malaysia’s leading fibre infrastructure provider, TM has extensive nationwide fibre coverage, robust digital platforms, and proven rollout experience. We leverage our core competencies to support the industry’s technological advancement, including the 5G ecosystem. TM is committed to providing high-quality converged digital offerings across various segments of its customers. We remain focused on delivering 5G services and solutions to our consumers and business segments. Our priority is to ensure that all customers continue to have seamless access to reliable 5G services and ecosystem. With a goal to be a Digital Powerhouse by 2030, TM is committed to playing a key role in building a digital nation, continuously supporting the 5G ecosystem, and driving digital innovation for all Malaysians.
TM reports strong 3Q2020 performance amidst challenging environment
Encouraging QoQ revenue growth across all product lines 3Q2020 QoQ Key Financial and Operational Highlights (All comparisons refer to the second quarter of 2020 (Quarter-on-Quarter (QoQ) comparison), except as noted): Group Revenue grew 3.8% to RM2.69 billion from RM2.59 billion recorded in 2Q2020. Group Reported Earnings Before Interest and Tax (EBIT) increased by 7.0% QoQ to RM456.2 million, from RM426.3 million in 2Q2020. Group Reported Profit After Tax and Non-controlling Interests (PATAMI) rose 19.9% QoQ to RM329.5 million compared to RM274.7 million. The total capital expenditure (capex) for 3Q2020 stood at 14.9% of revenue or RM400.0 million. unifi: Continues convergence leadership with growth in broadband and mobile; highest convergence penetration of TM households at 58%. TM ONE: Strengthened position as the digital enabler for enterprise and public sector customers with connectivity and end-to-end cloud offerings. TM Wholesale: Continues to connect industry players, carriers, over-the-top (OTT) providers and content players in Malaysia and globally. Addressing the digital divide: Remain committed to increasing connectivity reach via Jalinan Digital Negara (JENDELA) and accelerating the digital economy with recently announced Malaysia Digital Economy Corporation (MDEC) collaboration. Strong Business Performance for 3Q2020 Despite these unprecedented times, TM Group Revenue continues to increase QoQ recording a resilient 3.8% growth to RM2.69 billion from RM2.59 billion recorded in 2Q2020 on the back of higher revenue from voice, internet and data services. Group EBIT for 3Q2020 increased by 7.0% QoQ to RM456.2 million, from RM426.3 million in 2Q2020, on the back of lower operating cost, from the Group's continued momentum from its cost optimisation programmes. This subsequently led to a 19.9% increase in Group PATAMI from RM274.7 million in the preceding quarter to RM329.5 million. In 3Q2020, the company invested 14.9% of revenue in capex amounting to RM400.0 million - in line with guidance - as it continued to optimise its network and sweat its assets. Of the amount invested, 50% was for network access, 17% for core network, and the balance 33% for support system. Imri Mokhtar, Group Chief Executive Officer, TM, commenting on the results: "We are pleased to report another quarter of growth across all key financial metrics – revenue and profits – despite the challenging environment in Q3. Our efforts in cost optimisation continue to yield results with a healthy EBIT and a strong PATAMI. As we enter the ninth month of the Covid-19 pandemic, our priority continues to be the safety and health of our 'Warga TM' while continuously delivering connectivity and solutions excellence to our broad customer base." "We are seeing unifi gaining momentum, posting a 6.3% growth to 1.65 million subscribers, with our total broadband customer base now at 2.26 million. We achieved the highest convergence penetration (of three services or more) in TM households since 2018, of 58%, as more Malaysians embrace digital living-working in this new norm. On the wholesale front, we continue to collaborate with industry players in Malaysia and globally. At TM ONE, we further cemented our leadership position as the digital enabler for enterprise and public sector customers with enterprise-grade connectivity and end-to-end cloud offerings. We look forward to more collaborations with strategic partners and customers towards establishing a solid foundation for a more Digital Malaysia," Imri concluded. Operational Review: Maintaining Business Momentum TM delivered another quarter of robust performance, driven by its agility to mitigate the impact of the pandemic on Group businesses and operations; leveraging on new avenues for growth in the 'new normal' whilst adapting to challenges. unifi: Continues convergence leadership with growth in broadband and mobile Achieved the highest convergence penetration at 58% of TM households. unifi customer base grew 6.3% to 1.65 million; total broadband customer base grew 2% to 2.26 million during the quarter. Helped empower Small and Media Enterprises (SMEs) with relevant tools and knowledge to grow their businesses and embrace digitalisation with the launch of cari@unifi and eBiz Pack, unifi Business Club (uBC) collaboration with Lalamove and live webinars such as Reboot and Sembang Bisnes. Partnered with Funding Society Malaysia to provide business financing solutions for Micro SMEs (MSMEs) utilising Yellow Pages' digital platform. unifi Mobile extended access to the daily free 1GB Productivity Internet offer to 24 hours, until 31 December 2020, to support Malaysian's connectivity needs in Conditional Movement Control Order (CMCO). TM ONE: Strengthened our position as digital enabler for enterprise and public sector customers with connectivity and end-to-end cloud offerings Scaled up the full capabilities of Cloud α (Cloud Alpha) suite of services with full data residency, locality and sovereignty. Appointed as the technology partner of the Department of Statistics Malaysia (DOSM) to develop and maintain the Population and Housing Census of Malaysia 2020 (e-Census) platform. Continue to support state governments and local city councils to establish future-ready smart cities and smart homes via its TM ONE Smart City Solution enabled by the Internet of Things (IoT) and various smart solutions. TM Wholesale: Continues to connect industry players, carriers, over-the-top (OTT) providers and content players in Malaysia and globally Domestic Secured a new contract with a domestic mobile player for cross ocean connectivity, backhaul connectivity solutions and broadband access capacity upgrade. New backhaul connectivity deal with a domestic mobile player for new backhaul services. International Expansion of content delivery services with an Asian-based OTT player. Secured a deal with an Asian-based OTT player for connectivity solution within Asia Pacific, and two (2) new long term data connectivity deals with global carriers. Additional voice business deals with global service providers worldwide. TM Network remained stable throughout CMCO as a result of continuous network optimisation. This is despite traffic utilisation surging between 30% to 50% depending on peak hours, from March 2020 to November 2020 due to more Malaysians working from home. Supporting the nation's digital agenda and addressing the digital divide: Remain committed to increasing connectivity reach via JENDELA and accelerating the digital economy with the recently announced MDEC collaboration. Prospects for the Current Financial Year Ending 31 December 2020 Following the Covid-19 pandemic, Bank Negara Malaysia has revised Malaysia's annual gross domestic product (GDP) forecast to contract between 3.5% to 5.5%[1], against 4.3% growth in 2019. Uncertainty from the most recent wave of the pandemic from October onwards is expected to bring about further revision to these numbers. As the nation faces this adversity, relying even more on the internet and digital connectivity for work and studies, TM continues to serve as an essential service provider, ensuring stable network performance for the entire nation via both our retail and wholesale fronts. The Government's introduction of JENDELA in September 2020 as well as the RM7.4 billion allocations in the recent National Budget to deliver upgraded broadband services for year 2021 and 2022 will serve as a platform to accelerate Malaysia's digital connectivity through wider deployment of mobile, fibre and fixed wireless access. This will pave the way for 5G under the 12th Malaysia Plan (2021–2025). TM is at the forefront in collaborating with other service providers, enabling and delivering JENDELA. We continue to seek opportunities to cater for future demands of connectivity, in line with our proven commitment to maintain business profitability whilst adapting to and exploring new norms and avenues from this dynamic circumstances that the nation faces today. [1] Sourced from Bank Negara Malaysia, 14 August 2020
Telecommunications operators committed to JENDELA to deliver seamless digital connectivity for all Malaysians
Telecommunications operators Celcom Axiata Berhad, Digi Telecommunications Sdn Bhd, Maxis Berhad, U Mobile Sdn Bhd, Telekom Malaysia Berhad and TIME dotCom Berhad (collectively 'the Industry'), are fully committed to partner with the Government and make connectivity a basic utility to fast-track Malaysia's transition into a high-income digital society. The Jalinan Digital Negara (JENDELA) action plan announced recently by the Prime Minister of Malaysia, YAB Tan Sri Muhyiddin bin Yassin, will be the platform to achieve these aspirations by accelerating the country's digital connectivity through widespread deployment of mobile, fibre and fixed wireless access, and paving the way to 5G, under the 12th Malaysia Plan (2021–2025). The National Digital Infrastructure Lab: A collaborative effort aspiring to deliver connectivity for all The Covid-19 pandemic has triggered an urgency for Malaysia to address the 'new normal' and cater for future demands of connectivity as an enabler for all facets of life: The economy and people's livelihoods, education, business opportunities and building and connecting communities amongst others. To prepare for the future and to fulfill our Digital Malaysia aspirations, it is clear the Industry must aspire to enable everyone in this journey through quality and reliable connectivity. To this end, the Industry was a strong participant alongside the Malaysian Communications and Multimedia Commission (MCMC) in the National Digital Infrastructure Lab (NDIL), with the aim to collaboratively address how to deliver quality connectivity to all Malaysians. The outcome of the NDIL was a comprehensive digital infrastructure plan that accelerates improvements to coverage and quality of experience nationwide, optimises fixed, mobile and fit-for-purpose technologies; and paves the way for the eventual adoption of 5G technologies to enable the country's digital ambitions. JENDELA: Strengthening Malaysia's Digital Communications Infrastructure to Deliver Seamless Connectivity for all Malaysians The Industry will work closely with the Government to fast-track the nation's progress towards becoming a globally competitive, resilient and enriched digital society and economy through JENDELA. Phase 1 (now to 2022): An accelerated improvement plan for nationwide 4G coverage and 7.5mil fixed broadband premises; with consistent quality of experience for everyone As announced by the Prime Minister, JENDELA will be implemented in phases. Phase 1, which starts now until 2022, will optimise existing resources and infrastructure for both mobile and fixed connectivity to: Expand 4G mobile broadband coverage from 91.8% to 96.9% in populated areas; Increase mobile broadband speeds from 25Mbps to 35Mbps; and Enable as many as 7.5 million premises to access gigabit speeds with fixed broadband services. JENDELA will firstly prioritise strengthening the nation's existing fixed and mobile networks and building a strong foundation for the eventual adoption of 5G. This will also involve the gradual retirement of 3G networks at the end of 2021. To achieve the targets in Phase 1, the Industry will look at providing wider coverage and enhanced quality of experience by upgrading and building new 4G sites, and fiberising more premises. This will be driven by extending 4G mobile coverage in rural and remote areas, improving in-door coverage for urban and suburban areas, connecting more homes with fixed broadband via fibre and other fit-for-purpose technologies (e.g. Fixed Wireless Access (FWA) and satellite) to ensure widespread nationwide coverage and connectivity for all. Meanwhile, fibre providers will continue to support the industry with fibre backhaul for capacity to serve higher traffic demands expected on 4G and to ensure the fibre foundation essential for future technologies such as 5G. Phase 2 (Beyond 2022): Address the Digital Divide via Fixed Wireless Access (FWA) and pave the way for 5G Phase 2 of JENDELA involves utilising FWA and other fit-for-purpose technologies to address further gaps in the digital divide, as well as priming for the nation's eventual adoption of 5G technologies; which will take place once action plans under Phase 1 are achieved. The Industry will continue to educate the public on the potential of 5G and its capabilities, through use cases applied across verticals such as manufacturing, agriculture, education, healthcare, security transportation, consumer experience, environment and smart city development. These use cases will continue to be explored under the 5G Demonstration Projects (5GDP). JENDELA: A realistic, progressive digital connectivity plan to realise Digital Malaysia JENDELA is an accelerated improvement plan where all public and private stakeholders are equally invested to deliver. This is a shared aspiration for the whole country, driven by the Ministry of Communications and Multimedia (KKMM) and MCMC in partnership with the telecommunications operators, and other agencies at the federal, state, and local council levels. The industry believes that collaboration among all parties is crucial to facilitate infrastructure rollout in a coordinated manner, with minimal impact on civil works, the public, the environment, and all aspects of the ecosystem. We look forward to working together to fulfil the objectives of JENDELA and enabling widespread quality connectivity for Malaysians nationwide. The Industry will provide periodical updates to the public on the progress of JENDELA, including initiatives undertaken as part of journey towards its aspirations.
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