Telekom Malaysia Ordered to Double Access Speeds, Cut Prices by 1/2 Over 2 Years
Telekom Malaysia Berhad (TMB) fixed network Internet access services--by order of the Malaysian government--must deliver a higher speed for the same price, starting in January 2017.
The objective is to double speeds and reduce prices by half over the next two years.
"Lower prices and the potential for an increase in capital expenditure to support this plan are credit negative for TMB as they may pressure cash flows or raise debt levels in 2017," said Annalisa DiChiara, Moody VP. "At the same time, the financial implications for TMB in 2017 and beyond are unclear at this stage.”