Telekom Malaysia Bhd (TM) has signed a service agreement with MYTV Broadcasting Sdn Bhd to provide digital terrestrial television (DTTV) infrastructure, network facilities and related services for RM916.1mil.
In a filing with Bursa Malaysia on Monday, TM said the services would be accorded to MYTV for 15 years, commencing from Jan 1, 2016 until Dec 31, 2030 with an option to extend for a term to be mutually agreed upon.
“Both TM and MYTV may mutually review the provisions of the agreement every five years, with the first review to take place in 2019 and any determination from such reviews shall be mutually agreed and shall not affect the agreement period,” the company said.
The initiative is under the purview of the Communications and Multimedia Ministry.
“The subscription of the services from TM shall allow MYTV, which has been awarded the licence by the Government to operate the infrastructure and network facilities for DTTV in Malaysia, to realise the migration of analogue terrestrial broadcasting to digital throughout the country,” said TM.
It added that it does not foresee any exceptional risks, apart from the operational and business risks associated with the service agreement.
TM and MYTV had inked a framework agreement to provide DTTV in November 2014.
The agreement, which would result in TM receiving RM1bil over a period of 15 years, or an annual contract value of RM70.47mil, hinged on TM providing infrastructure and network services to MYTV.
Source: Star Online