TM hits 1.55m broadband subscribers

Telekom Malaysia Bhd (TM) is enjoying an increase in its average monthly broadband subscriber growth to an average of 34,000 versus last year’s average of 26,000 per month. It currently has more than 1.55 million subscribers. Of this, 6,000 are UniFi customers of TM’s much anticipated high-speed broadband service.

Yet as it pushes for higher adoption, TM faces the twin challenges of low PC penetration of around 37% and changing patterns of how consumers access broadband.

It acknowledges the need to increase the PC penetration for the population. Typically, PC penetration and fixed broadband have a strong correlation. To help move the broadband penetration up, TM is working together with the government to promote broadband bundled with netbooks to enable the lower income population to enjoy the benefits of broadband.

It is also facing changing purchasing behaviour pattern of all customer segments. “We are now seeing an aggressive play by the wireless broadband providers and therefore intense competition in the broadband space in terms of products and services offering,” says a TM spokesperson.

Instead of seeing this as competition, TM says this is complementary as customers’ needs differ at home and when on the move. It sees customers subscribing to more than one service provider, resulting in a bigger market for broadband.

Significantly, TM’s growth areas are still in urban and sub-urban, which it says is to be expected as that is in line with where PCs are now owned. The TM spokesperson points out that TM is also doing its own promotion particularly those that are bundled with user devices. “These packages are tailored for various segments of the population including low income groups and rural population. We believe all segments of the population should enjoy the benefits of broadband.”

TM’s billboard along the Federal Highway in Kuala Lumpur. Photo by Haris Hassan

Meanwhile in helping bridge the digital divide, TM is working with the Malaysian Communication and Multimedia Commission to deploy and manage 168 community broadband centres (CBC) in underserved areas nationwide and 98 broadband library community centres nationwide to provide Internet connection in underserved area identified under the Universal Service Provision Programme. The CBC areas also provide Wi-Fi access.


This article appeared in The Edge Financial Daily, July 29, 2010.