KUALA LUMPUR: Telekom Malaysia Bhd (TM) has received a letter of award (LoA) from the government for the implementation of both the high-speed broadband phase 2 (HSBB 2) and the sub-urban broadband (SUBB) projects.

In a filing with Bursa Malaysia yesterday, TM (fundamental: 1.1; valuation: 0.9) said the collaboration with the government would see it deploy the access and domestic core networks to deliver an end-to-end HSBB infrastructure for both projects.

Both HSBB 2 and SUBB, with investment costs of RM1.8 billion and RM1.6 billion respectively, are for a period of 10 years, it said.

“With the acceptance of the LoA by TM, the parties will enter into a formal agreement (HSBB 2 and SUBB agreements) based on mutually agreed terms and conditions in due course.

“Further details and relevant information would be announced upon the execution of the HSBB 2 and SUBB agreements between the government and TM,” it added.

TM shares closed down one sen or 0.14% yesterday at RM6.98, giving it a market capitalisation of RM25.96 billion.

This article first appeared in The Edge Financial Daily, on February 26, 2015.