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Celcom, DiGi ink major backhaul deal with Telekom Malaysia

AvantiKumar | Dec. 18, 2013
This move, which will provide extensive infrastructure for broadband, is in tune with the Malaysian government's call for greater industry partnerships, said the partners.

Signing_TM_DiGi modified 

Photo - (From left) - Datuk Che Azemi Haron, Deputy Secretary General, Ministry of Communications & 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 &Multimedia Commission (MCMC) at the recent signing ceremony for Next-Gen Backhaul Services between TM, Celcom and DiGi.


Telekom Malaysia [TM], Celcom Axiata [Celcom] and DiGi Telecommunications [DiGi] have agreed a wholesale bandwidth collaborative deal for TM Next-Gen Backhaul Services, which should help provide the infrastructure for broadband rollout through Malaysia.

Under the agreement, witnessed by Dato' Jailani Johari, the deputy minister of Communications and Multimedia and Dato' Mohamed Sharil Mohamed Tarmizi, chairman of the national regulator Malaysian Communications and Multimedia Commission (MCMC), the three operators will work to improve network quality to offer low latency and high bandwidth for mobile devices.

This will be achieved by using TM Next-Gen Backhaul for aggregation and access sites, which cover between 3,000 and 3,500 kilometres in Peninsular Malaysia.

This forms a significant part of the ongoing network collaboration initiative between Celcom and DiGi announced in early 2011, which includes with a joint ambition to roll out more than 10,000 kilometres of fibre network nationwide.

TM Group chief executive officer, 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."

"This [collaboration] will help support the continuous and ever-growing needs for higher mobile bandwidth demand of both Celcom and DiGi's customers," he said. "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," he added.

 Long-term collaboration

"The long term collaboration, spanning more than ten (10) years, between the three parties will see two phases of development," he said. "The first phase will be over a three-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."

DiGi chief executive officer, Henrik Clausen, 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," said Clausen. "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."

"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," said Celcom chief executive officer, Dato' Sri Shazalli Ramly.


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