KUALA LUMPUR: Telekom Malaysia Bhd (TM) yesterday signed a 15-year contract to provide digital terrestrial television broadcasting infrastructure, network facilities and related services to MYTV Broadcasting Sdn Bhd for RM916.1 million.

MYTV is an infrastructure and network service provider controlled by tycoon Tan Sri Syed Mokhtar Albukhary.

In a filing with Bursa Malaysia, TM said the service agreement enables the telco to take part in the transformation of the broadcasting industry in Malaysia, with the aim of creating a dynamic broadcasting sector that offers more choices in entertainment, interactive TV as well as high-quality informative programmes.

“The collaboration with MYTV also gives TM the opportunity to be part of MYTV’s growth, in line with TM’s commitment of ‘Business Made Easier’ for its valued business partners,” said TM, adding that the television deal is expected to contribute positively to the group’s future earnings.

MYTV, a wholly-owned subsidiary of Altel Holdings Sdn Bhd, was incorporated in April 2010, with an authorised share capital of RM5 million. It is established to build and operate the infrastructure and network facilities for digital terrestrial television services in Malaysia.

Under the agreement, TM will provide MYTV the terrestrial distribution network, satellite distribution network, broadcast contribution network, station facilities and infrastructure, operation and maintenance, satellite transponder, as well as business process outsourcing contact centre, TM direct Internet connectivity and managed IP telephony.

In return, MYTV will pay TM a total sum of RM916.1 million. The services will be accorded to MYTV for 15 years until Dec 31, 2030 with an option to extend.

It is learnt that both TM and MYTV may mutually review the provisions of the service agreement every five years with the first review to take place in the year 2019. Any determination from such reviews will be mutually agreed between the parties and will not affect the agreement period.

The subscription of the services from TM will allow MYTV, which has been awarded the licence by the government to operate the infrastructure and network facilities for digital terrestrial television in Malaysia, to realise the migration of analogue terrestrial broadcasting to digital throughout the country.

The initiative is under the purview of the ministry of communications and multimedia.