KUALA LUMPUR, ACE Market-listed TFP Solutions Bhd is set to participate in a nationwide rollout of the Fiber-to-the-Home (FTTH) programme worth RM2.75 billion in gross enterprise value.
In a statement today, the group said its 75 per cent-owned subsidiary, Jejak Semangat Sdn Bhd has signed a memorandum of understanding with the FTTH special purpose vehicle, Landasan Salam Sdn Bhd, to undertake the project nationwide.
TFP also said the connectivity backhaul will be provided by Tenaga Nasional Bhd’s subsidiary, Allo Technology Sdn Bhd’s Allo Carrier Network Services.
“The initial rollout of the FTTH will be in Langkawi, with a value worth RM200 million, which will see project design and construction works completed in two to three years.
“Following the completion, we expect to see a recurring revenue of around RM20 million annually for 20 years, bringing the total to RM400 million during the period for operation, maintenance, and supervision of services provided,” the software company said.
TFP managing director Datuk Hussian @ Rizal A. Rahman said the collaboration with 5G-enabling transport would help expand the potential of high-speed broadband internet access of up to 10 Gbps symmetrical connection speed and 5G deployments, especially for the rural areas.
“The involvement in this project will open up the potential for recurring and sustainable earnings growth going forward for the group.
“On top of the RM200 million for the design and construction of the project, the first phase project in Langkawi is expected to help the group maintain a sustainable and recurring revenue,” he added.
Source: BERNAMA News Agency