Malaysia’s leading mobile network provider, YTL Communications, has taken a significant step towards strengthening the country’s digital infrastructure. The company has signed a formal contract with the Railway Assets Corporation (RAC) to build a fibre optic network stretching approximately 1.600 kilometres along Malaysia’s railways from Perlis to Johor and Kelantan.
According to a statement by RAC, this historic agreement is a critical part of Malaysia’s wider efforts under the National Broadband Plan and National Digital Network (Jendela). This strategic initiative aims to significantly increase digital connectivity across the country by utilising railway routes to strengthen the backbone of Malaysia’s broadband network.
Contributions of Fiber Optic Network to Malaysia
This significant contract awarded to YTL Communications has the potential to revolutionise Malaysia’s digital infrastructure. The country hopes to effectively utilise its railway assets to lay fibre optic cables, enabling wider and faster internet connectivity across the country. This strategic move is seen as a comprehensive response to the growing demand for high-speed internet and advanced digital services across Malaysia.
RAC’s decision to award the project to YTL Communications marks the end of Telekom Malaysia’s long-standing monopoly on fibre optics, which has dominated the Malaysian telecommunications market. Telekom’s subsidiary Fiberail, which operates a 5.500km fibre optic network, was previously a major player in the market. However, RAC’s new deal with YTL Communications paves the way for greater competition and expansion in Malaysia’s telecommunications sector.
Broadband Growth and Future Potential
Malaysian Transport Minister Anthony Loke Siew Fook stressed that RAC chose YTL Communications because of its highest yielding bids, and that there would be no exclusivity in this regard. “We will continue to evaluate other providers to ensure the widest possible rollout of fibre optic networks,” Minister Loke said, according to Malay Mail.
This new permit agreement with YTL Communications will not directly affect the exclusive rights currently held by Fiberail under a separate agreement with railway operator Keretapi Tanah Melayu (KTM). The current agreement with Fiberail is stated to be valid until 2032. Furthermore, KTM has a 35,99% stake in Fiberail, which ensures its continued participation in the fiber optic network.
This significant new project will pave the way for further growth in Malaysia’s broadband sector, create better opportunities for digital services across the country, and significantly improve the overall communications infrastructure. The expansion of high-speed internet will significantly contribute to the development of Malaysia’s digital economy and the improvement of the quality of life of its citizens.
