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TM, TT dotCom to install submarine cable

KUALA LUMPUR: Telekom Malaysia Bhd (TM) and TT dotCom Sdn Bhd (TTdC) are set to jointly install a submarine cable connecting Peninsular Malaysia, Sabah and Sarawak.

Dubbed ‘Sistem Kabel Rakyat 1Malaysia (SKR1M), the project was awarded by the Malaysian Communications and Multimedia Commission MCMC to TM through a Public-Private Partnership arrangement between both parties.

Following a memorandum of understanding (MoU) signed between TM and TTdC today, a SKR1M Consortium would be set up for SKR1M development.

“Upon the signing of the MoU and the formation of SKR1M Consortium, the parties shall proceed with the tender exercise to determine the preferred technology partner to supply, deliver and implement SKR1M,” TM said in a filing to Bursa Malaysia.

During the MoU period, TM said the parties would also develop the principles for the construction and maintenance agreement (C&MA), where it would establish the rules governing the implementation and management of SKR1M.

The term of duration of the MoU is three months or it will expire upon execution of the C&MA, whichever is earlier.

In another note, TM said its wholly owned subsidiary, Tulip Maple Bhd has received the Securities Commission’s approval for the proposed establishment of the Sukuk programme.

The Sukuk programme shall provide TM with the flexibility to manage its fund-raising requirements and to have an alternative access to debt funding, in addition to conventional bank borrowings.

The Sukuk proceeds would be utilised by the company for capital expenditure and business operating requirements or as set forth in the pricing supplement for the relevant series, where such utilisation shall be Syariah-compliance. -- BERNAMA

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