KUALA LUMPUR (Apr 13): Telekom Malaysia Bhd (TM) has teamed up with DiGi.Com Bhd to get more people using smart devices to subscribe to its HyppTV internet protocol (IP) pay-TV service.

“We are delighted to be able to offer our HyppTV content to smart devices users, and there will be no interrupted viewing in any weather condition,” TM executive vice president of new media Jeremy Kung told reporters at the launch of HyppTV new value packs today.

“With this collaboration, we are cementing our plan to be the leader in IPTV services in Malaysia, catering to changing customer needs, especially from mobile savvy users who are actively consuming content on multiple devices,” he added.

Since January this year, any user of smart phones running either IOS or Android can subscribe to HyppTV new value packs by downloading the "HyppTV Everywhere" app.

Under the collaboration, DiGi.Com is providing the infrastructure support for its customers that subscribe to HyppTV Everywhere, while the content is provided by HyppTV itself.

However, Kung refused to disclose the proportion of revenue sharing model agreed between DiGi and HyppTV.

HyppTV Everywhere offers DiGi’s customers five packages that caters for specific group of clients which includes entertainment, children, and sports.

At the launch yesterday, DiGi chief marketing officer Christian Thrane declined to comment on issues in relation to the goods and services tax (GST) imposed on prepaid reload coupons, saying it will wait for the completion of a survey to determine the pricing format that consumers favour.

“There is no update so far and I do not wish to comment on it ahead of the survey. It is also a sensitive period for us now, as we are going to release our (financial) results soon,” he said.

Earlier this month, the Malaysian Communications and Multimedia Commission had pointed out that telecommunication companies’ (telcos) prepaid services are subject to GST, and that telcos will conduct a survey to determine the pricing of the services.

For example, a RM10.00 reload could be RM10.60 (RM10 reload plus 6% GST added) or RM10 (RM9.43 reload plus 6% GST added).

DiGi.Com (fundamental: 1.55; valuation: 2.1) shares closed down 0.64% at RM6.21 today, with a market capitalisation of RM48.21 billion, while TM (fundamental: 1; valuation: 1.1) shares were down 1.2% to RM7.40 with a market cap of RM27.52 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)