TM inks HSBB 2 and SUBB agreements with Malaysian government

Telekom Malaysia has announced the signing of two public private partnership (PPP) agreements with the Government of Malaysia for the implementation of the High Speed Broadband Project Phase 2 (HSBB 2) and the Sub-Urban Broadband Project (SUBB). Both projects will see TM roll out a last mile access network to homes and businesses utilising fibre-to-the-home (FTTH), Ethernet-to-the-home (ETTH) and VDSL2 technologies.

Outlining details of the two deals, TM noted that the ten year HSBB 2 project ‘encompasses the deployment of additional access and core capacity covering state capitals and selected major towns throughout the country’. Under the project, 95 additional exchanges will be made HSBB ready, providing access to 390,000 premises in ‘other priority economic areas including state capitals [and] selected major towns’ by 2017. The PPP agreement related to HSBB 2 meanwhile includes planning, designing, implementation, operation and maintenance of HSBB network infrastructure and services. Meanwhile, the SUBB infrastructure will also be rolled out over a period of ten years, with this project involving the upgrading of existing copper lines to deliver broadband at downlink speeds of up to 20Mbps, or up to 100Mbps in those areas where FTTH technology is utilised. In total, some 420,000 premises in ‘sub urban and rural areas’ will benefit from the SUBB project by 2019.

In terms of the financial aspects of the projects, the total cost of the HSBB 2 investment over the ten year period will reportedly be MYR1.8 billion (USD419 million), with the government contributing MYR500 million of that and TM responsible for the remainder. Total investment in the SUBB project, meanwhile, is expected to be MYR1.6 billion over ten years, with the state’s portion of that being MYR600 million and again TM covering the balance.

Commenting on the development, TM group chief executive Tan Sri Zamzamzairani Mohd. Isa, was cited as saying: ‘The HSBB 2 and SUBB are set to benefit not only the consumers, but also Malaysian businesses as we will be able to provide Malaysians with world class network infrastructure and superfast connectivity, boosting the development of ICT-related industries towards fulfilling Government’s aspiration of elevating Malaysia into a high-income nation. Rest assured that TM is fully committed in supporting the Malaysian Government in these initiatives, which will go a long way towards realising the goals defined under the National Broadband Initiatives.’