Broadband set to be TM's largest revenue contributor

SINGAPORE: Telekom Malaysia Bhd (TM) said broadband business could become the group's largest revenue contributor in three years, as demand for Internet and related services increases.As of first quarter 2008, TM's retail revenue was RM1.61 billion, of which 31 per cent came from its Internet and data services. Voice call services accounted for the bulk or 57 per cent.This compared with a 63 per cent contribution from voice and 27 per cent from Internet and data sales a year ago."We believe broadband business will contribute 60 per cent of the retail revenue in three years, overtaking voice.
"There're two main reasons for that. First, the migration of fixed voice to mobile. Second, we see the trend of Internet becoming more of a necessity rather than a luxury service for Malaysians," said TM group chief executive officer Datuk Zamzamzairani Isa in an interview here on Wednesday.The company also plans to launch its Internet Protocol Television (IPTV) services in the second quarter of 2009, which is expected to boost TM's revenue.Meanwhile, TM expects to sign up more new broadband customers this year, as compared with 2007 when it signed up 401,000 new customers.It believes that its broadband subscriber base could expand by at least 35 per cent this year."Initial signs have been very encouraging. In April, we signed up 43,000 new broadband customers, which was a record for us. May was another strong month where we signed up some 40,000 new customers," Zamzamzairani said.On the RM15.2 billion national high-speed broadband project, TM is considering its funding options.The project comes in two phases. First phase, in which most of the job will be done in the initial three years, involves around RM11.3 billion, of which TM will fund RM8.9 billion."We are finalising the details," Zamzamzairani said.TM and the Government are expected to sign a public-private partnership agreement by the end of this month."We are hopeful that it will materialise this month. But even if it doesn't happen this month, it won't be too far away," Zamzamzairani added. -www.btimes.com.my