KUALA LUMPUR: Celcom Axiata Bhd has signed a teaming agreement with Broadcast Australia, its technical partner in the bid to build infrastructure for the country’s digital terrestrial television broadcasting (DTTB) network.
“Broadcast Australia has the technical know-how for the delivery of terrestrial digital TV, and will be backed by Celcom’s largest network and engineering presence across Malaysia,” said Celcom CEO Datuk Seri Shazalli Ramly at the signing ceremony yesterday.
The DTTB network is prepped for free-to-air broadcasters who have yet to make the switch from analogue to digital, which is expected to take place by 2015.
The move to digital is believed to be a welcome cost savings for broadcasters, as it runs on fewer spectrums and consumes less power relative to the analogue system.
Shazalli said Celcom had received a letter of intent (LoI) from the Malaysian Communications and Multimedia Commission (MCMC) last week and it is in the process of submitting its business plan for the project.
The company aims to provide infrastructure for the DTTB project and rent it out to TV broadcasters for recurring income.
MCMC had earlier specified that to qualify for the job, applicants have to have experienced technical partners.
Maxis Bhd has teamed up with Astro, which has launched digital transmission for its paid television service.
KUB Malaysia Bhd is with Germany’s Media Broadcast Systems, while YTL Communications partners with US company Sezmi.
Celcom estimates the cost of building infrastructure for the DTTB network would be RM500 million over a period of three to five years, adding that the share of investment and stakeholding by Celcom and Broadcast Australia has yet to be determined.
“This collaboration lowers the risk for such a crucial and large national project, with both partners having a proven track record and easy access to the required funding,” Shazalli said. However, he noted that that Celcom is open to the participation of more than one other party who may also provide a portion of the required funding.
The company said last week that it would spend RM1 billion next year for its 3G infrastructure, the amount invested in the current year.
The move is part of Celcom’s plan to diversify from its voice business, which currently contributes about 70% of total revenue.
Contribution from its data and business solutions is expected to grow to 50% by 2015 from the current 30%.
“Celcom has been seeking to diversify its business and this partnership is the first step towards achieving that objective. We have been discussing the need to pursue (opportunities) beyond voice, but still within the context of our core business,” said Shazalli.
The company said it posted a record profit and revenue for its 3Q ended Sept 30.
Profit after tax and minority interests increased 10% to RM531 million from RM509 last year, while revenue rose 6% to RM1.83 billion from RM1.77 billion.
“Broadcast Australia has the technical know-how for the delivery of terrestrial digital TV, and will be backed by Celcom’s largest network and engineering presence across Malaysia,” said Celcom CEO Datuk Seri Shazalli Ramly at the signing ceremony yesterday.
The DTTB network is prepped for free-to-air broadcasters who have yet to make the switch from analogue to digital, which is expected to take place by 2015.
The move to digital is believed to be a welcome cost savings for broadcasters, as it runs on fewer spectrums and consumes less power relative to the analogue system.
Shazalli said Celcom had received a letter of intent (LoI) from the Malaysian Communications and Multimedia Commission (MCMC) last week and it is in the process of submitting its business plan for the project.
The company aims to provide infrastructure for the DTTB project and rent it out to TV broadcasters for recurring income.
MCMC had earlier specified that to qualify for the job, applicants have to have experienced technical partners.
Maxis Bhd has teamed up with Astro, which has launched digital transmission for its paid television service.
KUB Malaysia Bhd is with Germany’s Media Broadcast Systems, while YTL Communications partners with US company Sezmi.
Celcom Axiata Bhd chief of strategy and business transformation Farid Yunus (left) shaking hands with Broadcast Australia director of strategy and corporate development Brett Savill at the signing ceremony on digital television infrastructure, withnessed by Deputy Minister of Information, Communication and Culture Datuk Joseph Salang (second from right) and Shazalli.
Celcom estimates the cost of building infrastructure for the DTTB network would be RM500 million over a period of three to five years, adding that the share of investment and stakeholding by Celcom and Broadcast Australia has yet to be determined.
“This collaboration lowers the risk for such a crucial and large national project, with both partners having a proven track record and easy access to the required funding,” Shazalli said. However, he noted that that Celcom is open to the participation of more than one other party who may also provide a portion of the required funding.
The company said last week that it would spend RM1 billion next year for its 3G infrastructure, the amount invested in the current year.
The move is part of Celcom’s plan to diversify from its voice business, which currently contributes about 70% of total revenue.
Contribution from its data and business solutions is expected to grow to 50% by 2015 from the current 30%.
“Celcom has been seeking to diversify its business and this partnership is the first step towards achieving that objective. We have been discussing the need to pursue (opportunities) beyond voice, but still within the context of our core business,” said Shazalli.
The company said it posted a record profit and revenue for its 3Q ended Sept 30.
Profit after tax and minority interests increased 10% to RM531 million from RM509 last year, while revenue rose 6% to RM1.83 billion from RM1.77 billion.
