Published March 17, 2009

Telekom to sell capacity on US$2.4b network

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(KUALA LUMPUR) Telekom Malaysia Bhd, the nation's biggest fixed-line phone operator, said it plans to start talks in May to sell capacity on a US$2.4 billion network it's building.

Mobile-phone operators, including Maxis Communications Bhd and Digi.Com Bhd, would be able to bid for access to its fibre- optic transmission network after Telekom reveals its pricing structure in April, the company's programme director Ahmad Azhar Yahya, said at a briefing in Kuala Lumpur yesterday.

Telekom is spending RM8.91 billion (S$3.7 billion) over 10 years on the high-speed Internet network that aims to boost broadband penetration to 50 per cent of Malaysia's households by 2010.

The company is 'on track' to roll out the new broadband services in the fourth quarter, Mr Ahmad said.

'The pricing would be different than' the formula that applies for its copper network because the new service uses a different technology, Mr Ahmad said. Still, the rate would be 'attractive' and 'fair' to all parties, he said, declining to elaborate.

Telekom aims to be able to fully cover the 'high economic impact' areas in Klang Valley and Iskandar in the southern state of Johor within the next three years, Mr Ahmad said.

Companies such as Astro All Asia Networks plc, Malaysia's biggest pay-television operator, could bid for access to the broadband network, while wireless operators including U-Mobile Sdn could use capacity to interconnect calls, he said.

Telekom, which separated its mobile business last year to focus on its fixed- line and data transmission operations, received the government contract to develop the nationwide high- speed Internet network in September. -- Bloomberg