TM to continue its convergence efforts

There is no set timeline, but under the Perfexe 10, it will run for this year and into 2019

By LYDIA NATHAN / Pic By ISMAIL CHE RUS

Telekom Malaysia Bhd (TM) will continue to focus on accelerating convergence of its broadband, mobile, telephone and television services.

TM deputy group CEO Datuk Bazlan Osman said the group has been very focused on the convergence plan as it has more products to offer.

“Our target is to have at least 50% of households to be on UniFi, from the 2.3 million customers we currently have,” Bazlan reported at the company’s AGM in Kuala Lumpur yesterday.

He added that all the services are a stand alone plan, but they wanted to build the network.

“It is not easy to do it immediately because all networks run on standalones, but we have seen positive progress so far in the traction. It has to be cleverly done, there is no set timeline, but under the Perfexe 10, it will run for this year and into 2019,” he said.

Group CEO Datuk Seri Mohammed Shazalli Ramly said the Perfexe 10 serves as a guide to the business operations while tracking the progress of each plan.

“Although Perfexe 10 is a long-term plan, we are pleased by the progress of each business thus far, where we have rebranded our business clusters, with UniFi representing lifestyle offerings for homes, individuals, and small and medium enterprises (SMEs).”

“TM ONE offers end-to-end converged solutions to business verticals in the enterprise and public sector space; and TM Global is positioned to accelerate the digital opportunities of domestic and international telecommunications,” Mohammed Shazalli said.

Under the empowering digital goal, the group has introduced several apps for its customers and launched unifi.com. my web portal, an all-in-one service for interaction on UniFi related services.

In terms of financial performance, the group recorded an increase in revenue for the financial year ended Dec 31, 2017 (FY17), at RM12.09 billion compared to RM12.06 in FY16.

This was on the back of higher Internet revenue contribution, which rose 8.3% against FY16, to RM3.97 billion, contributing 33% of total revenue.

The group delivered 8.3% growth in Internet and multimedia services at RM3.97 million in 2017 compared to RM3.67 million in 2016, on the back of a strong increase in customer base of UniFi for homes and SMEs.

Voice services contributed RM3.18 million in 2017, 26.3% of the group’s operating revenue while revenue from data services contributed 22.1% of the group’s revenue.

Meanwhile, TM group CFO Nor Fadhilah Mohd Ali said TM will continue to expand on its infrastructure to pro- vide its customers with better services.

She added that in terms of quantum, the capital expenditure (capex) guide for 2018 will be between 25% and 30% of the group’s total revenue.

“In 2017, the capex was 22.8% of the total revenue which was RM2.75 billion, while in 2016 it was 27.5% of the total revenue which was RM3.3 billion. Under the headline key performance indicators, the revenue target for 2018 is from 3% to 4% of the previous year,” she said.