KUALA LUMPUR (Apr 9): Telekom Malaysia Bhd (TM) and DiGi.com Bhd will tap each other’s customer base through a collaboration involving TM's Internet Protocol television (IPTV).

According to both companies' joint media invite, TM (fundamental: 1; valuation: 1.1) will provide entertainment, sports and video on demand on its HyppTV to DiGi (fundamental: 1.55; valuation: 2.1) customers through mobile app "HyppTV Everywhere".

TM and DiGi said the launch for the service would take place this Monday (Apr 13, 2015).

TM’s pay-TV platform is delivered through optical fibre via the company's Internet services UniFi and Streamyx.

HyppTV provides more than 60 channels, which offer news, lifestyle and entertainment as well as sports programmes.

TM's planned collaboration with DiGi comes at a time when TM needs to increase Internet, multimedia, and data-based revenue. This is crucial to mitigate the decline in voice and non-telecommunication related services income.

According to notes accompanying TM's latest financials, its IPTV service had seen higher demand from the consumer and business segments.

TM said IPTV revenue from the consumer segment continued to increase with higher number of buys for premium channels and Video on Demand.

At 12:30pm, TM shares rose one sen or 0.1% to settle at RM7.48 for a market capitalisation of RM27.82 billion. DiGi was unchanged at RM6.30 for market value of RM48.98 billion.

(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.)