KUALA LUMPUR: Binasat Communications Bhd has won contracts to set up a total of 275 satellite facilities in Kelantan and Pahang as an initial effort to roll out satellite internet broadband services to underserved areas.
The company said the contracts paved the way for expanding its services to other local state councils and businesses.
It is eyeing double-digit top-line growth from this business division.
Binasat's executive director and chief executive officer Zulamran Hamat said the contracts would help push forward the company's digitalisation efforts and narrow the digital divide in these areas that lack the existing telco infrastructure.
"It also helps us build on our track record and expand our services to other local state councils.
"Instead of waiting for the deployment of telco infrastructures that involve fibre optic and other internet cables, consumers could easily gain access to the internet by installing a device that taps into satellite broadband services.
"We are also confident that deploying our satellite broadband services will gain traction as more customers come on board. This will help to generate a long-term sustainable, recurring income for the group," he said.
Binasat joined Kelantan ICT Gateway Sdn Bhd and Pahang Go Sdn Bhd, both state-owned entities in Kelantan and Pahang, respectively, to provide satellite internet broadband services.
This was a positive development after the company obtained the Application Service Provider licence in 2022, which enabled it to launch BinaNet Satellite Internet Service targeted at underserved areas.
This also marked the inaugural collaboration between Binasat and Malaysia's two local state councils.
Under the collaboration, Binasat will first set up 225 and 50 satellite facilities for both Kelantan and Pahang.
The company expects to complete the set-up for Pahang before the end of 2023 and within the first half of 2024 for Kelantan.
Binasat's role includes setting up BinaNet, while the state governments will provide site lists and power supplies for the equipment.
Aside from business-to-government opportunities, Binasat will also explore business-to-business (B2B) options by targeting the maritime and oil and gas industries that are increasingly more likely to adopt the Very Small Aperture Terminal (VSAT) system.
"This is another untapped market that we are eyeing.
"Our RM13 million investment in 2018 has now come into commercialisation, and our objective is to grab the low-hanging fruit sectors such as maritime and oil and gas.
"We are seeing these industries increasingly adopt the VAST system," Zulamran added.