MYTV signs deal worth RM1b with TM

KUALA LUMPUR: MYTV Broadcasting Sdn Bhd has signed a RM1.06 billion framework agreement with Telekom Malaysia Bhd (TM) for the provision of infrastructure and network facilities for digital terrestrial television (DTT) services in Malaysia.
Under the framework agreement, TM will provide MYTV with DTT services for a period of 15 years with an annual contract value of RM70.47 million.
The deal will see TM providing MYTV with infrastructure and network services including terrestrial distribution network services, satellite distribution network services, broadcast contribution network services, station facilities and infrastructure services as well as operation and maintenance services.
The agreement also entails TM developing a terrestrial distribution network to connect MYTV's digital multimedia broadcasting hub to all 37 main transmitter sites, 10 regional hubs and two earth stations via a nationwide STM-1 ring network.
TM will also provide MYTV with the fibre broadcast network and system that will allow MYTV to deliver high quality picture and an improved overall quality of digital viewing experience.
"There are about 35 substations to be used for transmission towers, MYTV will rent from us. Besides infrastructure, we also provide operations and maintenance services," TM managing director Tan Sri Zamzamzairani Mohd Isa told reporters at the signing ceremony yesterday.
MYTV group CEO Nik Abdul Aziz Nik Yaacob said the DTT services will be available mid-2015 with an initial 30 channels in the first phase.
"We have identified at least for the next three years we will be spending slightly over RM1 billion to prepare the infrastructure. We are looking at various options for financing," he said, adding that there will be a number of gap filler towers that still need to be built.
On the cost of the set-top boxes (STB) required to enjoy the DTT services, he said it is finalising the price, which will be affordable and not burden the rakyat.
"We estimate total TV household about 6.8 million. On our commitment to the government, MYTV will give two million STBs to the needy folk. The rest we are in discussion with the government for the rest of the distribution. As far as the price is concerned, we hope to make some announcement by first or second quarter next year," said DTT deputy project director Mohamed Redzwan Yahya.
He said MYTV is at the tail end of tenders for its infrastructure packages and are in the midst of evaluation the tenders.
"We expect to make awards by end of the year. That should give us time to rollout and meet our commitments to the government by then," he said.
The DTT services will be rolled out in two phases. The first phase which will start in Kelantan, Terengganu and Pahang by mid-2015 aims to cover 85% of the population while the second phase aims to target 98% of the population nationwide by mid-2016.