TM to boost arpu via upsell of its internet service to existing customers

KUALA LUMPUR: Telekom Malaysia Bhd (TM), which saw second quarter net profit coming in almost flat, aims to boost its average revenue per user (arpu) through continuous upsell of its internet service to existing customers, said its group CEO Tan Sri Zamzamzairani Mohd Isa.
"We are coming up with more exciting contents to boost up the arpu. We are doing up selling. Most of our Unifi customers for example are still on the 5 mega bit per second (5Mbps). Once we are successful selling them, of course the ARPU will increase," he told reporters after announcing the company's financial performance for the second quarter ended June 30, 2014 here yesterday.
Zamzamzairani said this includes increasing the content offering for its internet protocol television (IPTV) service, Hyyptv as well as its foray into the long term evolution (LTE) services.
TM's arpu for its Unifi services in the second quarter was RM187 compared to RM180 in the same period of 2013 while streamyx broadband was RM85 from RM82 previously.
To date, he said TM has more than 685,000 UniFi customers while Streamyx customer base has also increased to 1.578 million.
For the second quarter ended June 30, 2014, TM's net profit stood at RM214.03 million compared to RM213.84 million a year earlier with growth in internet and other telecommunications services revenue.
TM's Q2 revenue grew by 7.9% to RM2.8 billion from RM2.6 billion a year ago and declared a single-tier interim dividend of 9.5 sen a share or RM348.4 million.
For the first six months ended June 30, 2014, it said the company's net profit declined 0.6% to RM424.7 million from RM427.1 million a year earlier due to absence of high speed broadband (HSBB) tax incentives in 2014.
Revenue rose 8% to RM5.44 billion driven primarily by internet and multimedia as well as other telecommunication services. Internet services revenue increased 13.3% to RM1.45 billion from RM1.28 billion in line with increased broadband customer base.
Zamzamzairani said TM expects to complete the 57% acquisition in Packet One Networks Malaysia Sdn Bhd (P1) by end of the third quarter.
TM also targets to reach out to 280 sites nationwide by year end for its new 4G broadband offering, TMgo.