Telekom Malaysia and Tenaga Nasional Berhad (TNB) have signed a Memorandum of Understanding (MoU) to codevelop an implementation plan to deliver on the government’s Nationwide Fiberisation Plan (NFP). In a press release, Telekom Malaysia noted that the collaboration will ‘capitalise on the combined strength of both Government-Linked Companies (GLCs) in terms of reach, infrastructure and expertise’, while it claimed ‘synergies will enable the most efficient cost structure, and further accelerate the fibre broadband network reach’. The MoU is, however, subject to a definitive agreement to be signed between the parties upon finalisation of the commercial terms, and Telekom Malaysia said that further announcements will be made ‘in due course’.
The NFP was announced in March 2017, under which the government is seeking to expand the country’s fixed broadband infrastructure and increase the speeds available to consumers. At the launch of the initiative, Communications and Multimedia Minister, Datuk Seri Dr Salleh Said Keruak, said the programme – which will run until 2019 – would see the construction of fibre infrastructure connecting around six million premises, including two million in rural areas. Such plans are to be implemented by way of cooperative arrangement among companies, with Salleh noting that a three-tier model would be established, whereby the first tier would see TNB use its fibre trunk network for wholesale backhaul services, with second-tier wholesale service providers to offer last mile access, and third-tier providers, comprising existing retail provider, then offering services to consumers and businesses.