HSSB Agreement With REDtone To Uplift TM's Earnings

22 Rabiulakhir 1433

KUALA LUMPUR, March 15 , 2012  Telekom Malaysia Bhd's (TM) earnings are expected to see an uplift following its high speed broadband (HSBB) agreement with REDTone International Bhd (REDtone) yesterday, said Hong Leong Investment Bank (HLIB).

"We would expect the agreement to contribute positively to TM's earnings whereby, it would normally encompass two types of income, recurring and usage based," HLIB said in its research note today.

Under the agreement, TM will provide both HSBB access and transmission services to REDtone with the latter having access to 1.3 million premises by year-end.

HLIB believes that REDtone would utilise the HSBB as a backhaul to complement its existing 4,500 WiFi hotspots and potentially increase it to 5,000 by year-end.

Meanwhile, it also believes that TM will continue to lead the fibre-to-the-home market segment with the advantage as the first mover.

Source- BERNAMA