Business

Wednesday February 11, 2009

A boost for Internet peering and networking


TM: IP node will help M’sia become regional hub for routing traffic

KUALA LUMPUR: Telekom Malaysia Bhd (TM) says its collaboration with Verizon Business to jointly develop a new Internet protocol (IP) node will give a boost to Malaysia’s agenda to be a regional hub for Internet peering and networking.

Verizon Business is a unit of US-based Verizon Communications Inc.

“The collaboration would provide an impetus for Malaysia to become a regional transit hub for global Internet service providers routing traffic,” TM group chief executive officer Datuk Zamzamzairani Mohd Isa said after signing a memorandum of agreement with Verizon Business vice-president of strategy and finance, John Doherty.

TM would be able to offer high-end network services to local as well as multinational corporations in Malaysia and throughout the region at competitive prices with the new IP node, to be launched in the second quarter of 2009, he said.

Datuk Zamzamzairani Mohd Isa (right) and Verzion vice-president of strategy and finance John Doherty after the signing.

Zamzamzairani, however, declined to reveal how much revenue TM could generate from the new IP node, but noted that the current Internet traffic in and out of Malaysia was already one of the highest in the region, and expected to further grow robustly.

“In 2007, connectivity from Malaysia to the world was a little more than 40 gigabit per second (Gbps). This year, this figure is expected to be 140Gbps and in 2011, it would grow even further to 213Gbps,” he said.

Verizon, which owns and operates one of the world’s largest local-to-global IP networks, spanning more than 150 countries on six continents, would share the costs of developing the node in Cyberjaya with TM.

“The Asia-Pacific region is a key investment location for many of our multinational customers and we would be able to support them with this collaboration,” Doherty said.

Meanwhile, TM, which is due to report its full-year financial results later this month, expects minimal impact to its bottomline from the economic slowdown.

“Fortunately, the telecommunications industry was not very much impacted by the slowdown and TM is not planning any job cuts,” Zamzamzairani said.

He added that TM had strong cashflow to support its high-speed broadband project, which has commenced the procurement process.

“We are also looking for strategic partners for the project,” he said.

On whether the RM4bil owed by its sister company, TM International Bhd, could be paid back by its due date in April, Zamzamzairani said:“No indications on our side, it is status quo.”


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