KUALA LUMPUR (Feb 25): 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 today, 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 infrasructure for both projects.
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 1 sen or 0.14% today at RM6.98, giving it a market capitalisation of RM25.96 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.)