TM expects to conclude talks on HSBB2, SUBB in Q3

KUALA LUMPUR: Telekom Malaysia Bhd (TM) expects discussions with the government on the High Speed Broadband Phase 2 (HSBB2) and Sub Urban Broadband (SUBB) projects to conclude in the third quarter of 2015, group CEO Tan Sri Zamzamzairani Mohd Isa said.
He said the company had received the letter of award (LOA) and was entering the final stages of talks to fine-tune the details of HSBB2 and SUBB.
The HSBB2 and SUBB projects are a collaboration with the government to deploy the access and domestic core networks to deliver an end-to-end broadband network infrastructure and services.
"After the LOA, we are sitting down to get agreements related to the types of commitments and coverage that are involved," he told a press conference after TM's annual general meeting (AGM) yesterday.
At the AGM, shareholders passed all resolutions including the final single-tier dividend payout of 13.4 sen per ordinary share totalling about RM498.4 million.
Zamzamzairani said in 2014, TM recorded a steady performance with revenue crossing the RM11 billion milestone hurdle – growing 5.7% to RM11.24 billion – customer base growing to 2.23 million, led by UniFi.
For 2015, the company expects revenue to increase between 4% and 4.5%, in line with the country's gross domestic product (GDP) growth.
He said capital expenditure for this year would be 20.1% of group revenue, excluding HSBB2 and SUBB, which would be utilised mainly for business growth and to improve customer experience.
Going forward, Zamzamzairani said TM would focus on the execution of its Performance Improvement Programme 3.0, with its pillars of continued growth, greater efficiency and productivity as well as institution building. – Bernama