Year 2018 was a challenging year for the Telekom Malaysia (TM) as the company had recorded a revenue of RM 11,819.3 million in that year. It shows a decrease of 2.2% rather than revenue at 2017 which is RM 12,085.1 million. Even though the Internet and Multimedia sales recorded to improve from year to year that show a rise of 3.7% (RM 145.9 million), Telekom Malaysia (TM) have faced challenges in term of retaining the growth momentum for the company data segment, which has been mainly affected by the Mandatory Access Pricing Standard (MSAP) which came into effect in January 2018. For the year 2018 resulting from MSAP, TM accepted provisions of RM169.2 million representing the current negotiated rates with the relevant parties that were involved, which was taken as a year-long reduction in data revenue. The weaker Business and Public Sector market also impacted on TM revenue growth under the other telecommunications-related services that include TMs Information and Communications Technology (ICT) and sales solution, but TM managed to close the year 2018 with a growth of 1.4% to close at RM1.957.8 million. There are some challenges that Telekom Malaysia (TM) need to face in TMs services which are:
I. Internet and Multimedia Services.
Translated into financial performance, despite lower Average Revenue per User (ARPU), reflecting the company alignment with the national broadband improvement plan, Internet and multimedia revenue continued to grow year-on-year with a 3.7% (RM145.9 million) increase, leading to RM4.119.9 million overall revenues in 2018 compared to RM 3,974.0 million in 2017.
II. Voice Services.
TMs voice services contributed a significant portion of the company’s sales representing 25.5% of the TM’s total revenue in 2018 compared to 26.3% in 2017. With total revenue of RM3,012.7 million, voice reported a year by year decrease of 5.3% (RM167.6 million). Although this was predicted from the continuing annual pattern on the retail side, the effects had been partly cushioned and offset by a rise in wholesale traffic minutes under the Global business cluster.
III. Data Services.
Data services dropped 8.7 percent (RM232.7 million) in 2018 with RM2.442.5 million, to total revenue share of RM2.675.2 million reported in 2017. This was mainly due to an RM169.2 million clauses, which was the expected effect on TM retail division of the current mandatory standard of Access Pricing.
IV. Other Telecommunication Related Services.
In 2018, due to the demand and competitive market climate has resulted in increased conservative ICT investment on the front of the enterprise and the public sector. TM has leveraged their broad services integrating simple networking with ICT solutions to allow and link our business and public sector clients nationally and internationally.