24 August 2010
TELEKOM MALAYSIA BERHAD
| Type | Announcement |
| Subject | EXECUTION OF THE AGREEMENT FOR THE PROVISIONING OF THE BROADCAST NETWORK AND MAINTENANCE SERVICES AND THE INTERNET PROTOCOL VIRTUAL PRIVATE NETWORK SERVICES FOR RADIO TELEVISYEN MALAYSIA (“RTM”) BETWEEN THE GOVERNMENT OF MALAYSIA AND TELEKOM MALAYSIA BERHAD (“THE AGREEMENT”) |
| Contents | 1.0 Introduction TM refers to its previous announcement dated 8 October 2009, in which it was announced that TM has accepted a Letter of Offer from the Government of Malaysia (“the Government”) for the provisioning of Network and Maintenance Services (“the NM Services”) by TM on the transmission of RTM’s television and radio programmes in Peninsular Malaysia, Sabah and Sarawak and providing the Internet Protocol Virtual Private Network Services (“the IP VPN Services”) for the purpose of connecting RTM’s regional studios to their main studio at Angkasapuri, Kuala Lumpur. TM is pleased to announce that it has today signed the Agreement for the provisioning of the NM Services and IP VPN Services (“the Agreement”) with the Government of Malaysia (the “Government”). |
|
2.0 Background
2.1 Since 1946 when Radio Televisyen Malaysia (“RTM”) was first established, TM, then a Government Department known as Jabatan Telekom Malaysia (“JTM”), has been providing the NM Services for RTM’s TV and radio services throughout the country. 2.2 The NM Services that are currently provided by TM to the Government include:
2.3 With TM being its broadcasting service provider, the Government is able to capitalize on TM’s extensive nationwide networks and strategically located transmission sites to attain the widest TV and radio coverage to reach almost 98% of the population. TM’s personnel based at the stations are also able to provide fast response to troubleshoot and remedy service outages within specified and agreed restoration times. 2.4 Over the years, RTM and TM have forged a close working relationship through the sharing of the common goal and commitment to deliver the Government’s TV and radio programmes reliably to all parts of the country. 3.0 Details of the Transaction 3.1 The provisioning of the NM Services and IP VPN Services shall be undertaken by TM for a period of three (3) years commencing from 1 January 2009 until 31 December 2011 with the total value of Ringgit Malaysia One Hundred Seventy Million and Four Hundred Thousand (RM170,400,000.00) Only. 3.2 The IP VPN Services is a new service (value added service) to be provided by TM to the Government to enable the transmission of video between RTM’s regional studios and Angkasapuri. 4.0 Rationale for the Transaction
5.0 Financial Effects of the Transaction 5.1 Issued and Paid-up Capital
5.2 Earnings, Net Assets and Gearing The provisioning of the NM Services and the IP VPN Services to the Government is not expected to have any material impact on the earnings, net assets and gearing of TM Group for the financial year ending 31 December 2010 and is expected to contribute positively to the future earnings of TM Group during the contract period. 5.3 Substantial Shareholders’ Shareholdings The provisioning of the NM Services and the IP VPN Services to the Government will not have any effect on the shareholding of TM’s substantial shareholders. 6.0 Directors’ and Major Shareholders’ Interest
7.0 Statement by Directors
This announcement is dated 24 August 2010. |
|
| Company Name | TELEKOM MALAYSIA BERHAD |
| Stock Name | TM |
| Date Announced | 24 Aug 2010 |
| Category | General Announcement |
| Reference No | TM-100629-59749 |