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TM to provide wholesale bandwidth connectivity to Celcom & DiGi

Telekom Malaysia Berhad (TM) have inked a wholesale bandwidth collaborative deal with Celcom Axiata Berhad (Celcom), through its wholly-owned subsidiary, Celcom Networks Sdn Bhd (Celcom Networks) and DiGi Telecommunications Sdn. Bhd. (DiGi) for TM Next-Gen Backhaul Services.

TM-Next-Gen-Bakhaul-Celcom-Digi[Datuk Che Azemi Haron, Deputy Secretary General, Ministry of Communications and Multimedia, Dato’ Sri Shazalli Ramly, Chief Executive Officer, Celcom Axiata Berhad (Celcom), Tan Sri Zamzamzairani Mohd Isa, Group Chief Executive Officer, Telekom Malaysia Berhad (TM), Dato’ Jailani Johari, Deputy Minister of Communications & Multimedia, Henrik Clausen, Chief Executive Officer, DiGi Telecommunications Sdn Bhd (DiGi) and Dato’ Mohamed Sharil Mohamed Tarmizi, Chairman, Malaysian Communications and Multimedia Commission (MCMC)]

The deal forms an important part of the ongoing network collaboration initiative between Celcom and DiGi announced in early 2011, particularly with regards to the joint ambition to roll out more than 10,000 kilometres of fibre network nationwide. As part of the agreement, TM will provide wholesale bandwidth connectivity via TM Next-Gen Backhaul services for aggregation and access sites jointly owned by Celcom (via Celcom Networks) and DiGi, covering a span of between 3,000 and 3,500 kilometres in Peninsular Malaysia. 

The long term collaboration, spanning more than ten (10) years, between the three (3) parties will see two (2) phases of development. The first phase will be over a three (3) year period starting from 2014 until 2016 followed by the second phase deployment of additional sites for mobile access and aggregator sites across Peninsular Malaysia.

TM will support Celcom and DiGi’s transmission requirements, which would enable both companies to optimise cost and efficiently utilise its infrastructure, it said. The company added that in line with regulatory requirements for service providers to have a robust backhaul network for LTE rollout, this collaboration will help to avoid unnecessary duplication of network infrastructures and it is a strategic move by the operators to be more operationally efficient as the industry matures.

Commenting on the collaboration, Tan Sri Zamzamzairaini said, “We are indeed very happy with this signing with Celcom and DiGi, two (2) major players in the industry, in what is yet another landmark collaboration. As Malaysia’s leading telecommunications infrastructure provider, TM will optimise its extensive nationwide network infrastructure coverage to provide cost effective and high capacity bandwidth via resilient IP network platform for TM Next-Gen Backhaul Services deployment. This will support the continuous and ever-growing needs for higher mobile bandwidth demand of both Celcom and DiGi’s customers. Backhaul networks need to be able to support the main traffic types – voice, video, network signalling/management and internet data. Leveraging on TM’s strength on its nationwide fibre coverage and resilient network platform, Celcom and DiGi subscribers will be able to enjoy seamless and quality services via their mobile devices everywhere, anywhere.”

Speaking at the signing ceremony, Henrik Clausen, DiGi’s Chief Executive Officer said; “Demand for quality internet services is growing year-by-year in Malaysia, and Malaysians all over the country today require access to always-on, high-speed data connectivity to cater to their increasing needs. By leasing wholesale bandwidth services for access and aggregation fibre network from TM, DiGi will be able to obtain quick access to fibre infrastructure to support our future network capacity demands, to deliver affordable and high-quality internet connectivity to more Malaysians.”

“Infrastructure sharing among industry players is gaining traction around the world. Our collaborative effort today marks another clear move to be more operationally efficient as an industry, and by leveraging on synergies created we will be able to build and utilise our assets more efficiently, optimise costs, and avoid duplicating network infrastructures. Ultimately, benefits derived from operational efficiencies will be channeled towards accelerating our reach and significantly improving the quality of our services to all customers across Malaysia.”

Further commenting on the collaboration, Dato’ Sri Shazalli Ramly, Chief Executive Officer, Celcom mentioned, “This collaboration is a significant milestone for Celcom – not only as a showcase of industry collaborations in line with national aspirations but also as a major step towards top-notch customer experience. We are committed to improving our nationwide network for coverage and speeds in the long run and this represents one of many key investments into network quality that Celcom is currently implementing.”

About Kugan

Kugan is the founder of MalaysianWireless. He has been observing the mobile industry since 2003. Connect with him on Twitter: @scamboy