Telekom Malaysia

Telekom Malaysia Berhad or simply TM is a Malaysian telecommunications company that was founded in 1984. Beginning as the national telecommunications company for fixed line, radio, and television broadcasting services, it has evolved to become the country's largest provider of broadband services, data, fixed line, pay television, and network services. TM ventured into the LTE space with the launch of TMgo, its 4G offering. TM's 850 MHz service was rebranded as unifi Mobile in January 2018.
TM represents one of the largest government-linked companies in the country, with more than 28,000 employees and a market capitalisation of more than RM25 billion.

History

Foundation and early years

Much of the telecommunications infrastructure in Malaysia was damaged during the Second World War and the Japanese occupation. In 1946, when the British re-established their position in Malaya, they repaired the trunk routes, restored fallen telephone poles and installed the copper wires that had either been damaged or stolen. During the Japanese occupation, the Posts & Telegraphs Department was split into two separate units. When the British returned, they initially re-united the two entities, but this effort was short-lived. Along with the formation of the Malayan Union on 1 April 1946, the Malaysian Telecommunications Department and the Postal Services Department were born, with the former controlling telegraph, telephone and wireless services and the latter overlooking mail, money orders and savings accounts.
During the emergency, there was a strong focus on providing communications links for the police and armed forces. This included the installation of radio stations in the jungle as well as very high frequency radiotelephony over the normal state network. By 1953, all hill stop stations required for the police VHF network were completed, enabling every police station and police vehicle to communicate with headquarters and with each other. The police radio services were thought to be the largest scheme of its kind in the world.
At the same time, despite the Occupation, commercial activities began to flourish and demand for telecommunications services increased greatly. This necessitated a third floor to be built at the telephone exchange building in Kuala Lumpur. Along with the issue of 10 cent coins, phone booths began to spring up in Kuala Lumpur and Penang. From 1950 to 1953, the department's revenue more than doubled from $8 million to $17 million as the number of telephones installed rose from 20,000 to 39,000. Accordingly, the trunk and junction networks expanded, and the number of radio stations grew by 10 times to more than 1,000. In 1953, too, the Penang Auto Exchange was opened catering for 5,000 lines. In 1954, the Main Trunk Route linking Singapore to Malacca, Kuala Lumpur and Penang was completed. Satellite exchanges began to emerge. During this period, international connections have also increased, linking Malaysia with the rest of the world.
As independence became imminent, a comprehensive Malayanisation programme was embarked on to ensure the department would continue to be run by capable local personnel. From as early as 1954, no less than 21 Malaysians were pursuing studies in telecommunications related areas in Britain and Australia. Their numbers were boosted by youth enrolling at the Department's Gracelyn Training School.

Growth

Following the country's Independence in 1957, the Malayan Telecommunications Department was renamed Jabatan Telekom. One of its first tasks was to provide telecommunications facilities throughout the nation, as part of the Rural Development Plan. Microwave radio links were established which, by 1962, covered most urban centres in Peninsular Malaysia. In 1962, too, the Government took control of international calls from Cable & Wireless, which had been operating Malaysia's overseas telecommunications services for almost 10 years. Subscriber trunk dialling was introduced, enabling telephone owners in Kuala Lumpur to call Singapore directly, without having to go through an operator, using the first long-distance microwave link. Overseas calls were further enhanced with the roll-out of SEACOM, which formed part of the Commonwealth Cable Scheme. In 1961, the Federation of Malaya and Singapore became partners in this initiative, with Malaya investing about $12 million in it. The first phase of SEACOM between Singapore and Jesselton, in Sabah, was opened on 15 January 1964. On 30 March 1967, the entire system was commissioned.
The expanding microwave network enabled Jabatan Telekom to launch television services in Peninsular Malaysia in 1963, using the same system. While Radio Televisyen Malaysia controlled the content of local TV, Jabatan Telekom managed the transmission of microwaves from the studio to homes.
As prior to 1963, Sabah and Sarawak were not part of the Federation of Malaya, telecommunications services in these East Malaysia states were managed independently, by the Telecommunications Department of Sabah and Sarawak. In 1968, this department merged with that of Peninsular Malaysia to form the Telecommunications Department of Malaysia.
In 1970, further expanding Malaysia's international connectivity, an earth satellite station was built near Kuantan for communications via the Indian Ocean Intelsat III satellite. The station, costing $9 million, was completed in a record 12 months by a fully local team. The station was to serve primarily external telephone, telegraph and telex communications, however it also enhanced the reception of international television programmes.
In 1975, the International Telex Exchange was opened, allowing businesses to send telexes. Four years later, International Direct Dialling services were introduced and the first electronic exchange was commissioned in Johor Bahru. The volume of new development was such that, in the early 1980s, the department was compelled to appoint contractors to help build new lines and extend the cable network.
In terms of systems, the year 1985 was a watershed. This was when Automatic Telephone Using Radio 450 – the earliest precursor in Malaysia to today's mobile service – was introduced. The service provided almost universal coverage with the installation of five mobile telephone exchanges and many radio base stations.
In line with the Government's privatisation agenda, and in recognition of the benefits Jabatan Telekom would enjoy unencumbered by policies and budgets, steps towards this end were embarked on beginning in 1985. On 1 January 1987, a corporatised Syarikat Telekom Malaysia was born, under the Telecommunications Service Act 1985. The company was immediately faced with various challenges including a huge debt, inventories that had been unused for years and a workforce that still operated on a civil servant mentality. Although the company embarked on a comprehensive programme to transform the organisation, with a strong focus on customer service, the results took time. Some disgruntled customers even suggested that competition be allowed in the industry to improve standards.
Challenges aside, STM continued to adopt new technologies as they emerged and to offer these to its customer base. Corporate Information Superhighway was launched, a globally linked fibre optic backbone capable of transmitting digital signals at 10 Mbit/s, which was among the fastest of such service in the world. At the same time, the process of transforming the Main Trunk Route network from analogue to digital began, and was completed by 2000. This transformation received a boost once the RM150 million Kuantan-Kota Kinabalu submarine fibre optic cable became operational. For the first time, too, STM invested in a new optical fibre submarine cable system linking Malaysia, Singapore, Hong Kong, Taiwan and Japan. Each optic fibre in the cable system could carry traffic at 560 Mbit/s, equivalent to 30,000 simultaneous phone calls.
The next logical step to buffer its finances was to undergo a listing. STM was listed on 7 November 1990, achieving a market value of RM27 billion or 10% of the total market capitalisation of the Kuala Lumpur Stock Exchange. The volume of trading was such that KLSE had to suspend activity on the stock for 10 minutes to prevent its system from jamming, as it was unable to handle the sheer number of incoming orders.
Following its listing, STM has evolved to be known as Telekom Malaysia Berhad, and the Company pushed ahead with new products to increase its subscriber base, launching services such as TELECAJ, a billing option for those who travelled a great deal; Malaysia Direct for those travelling overseas; and Telestock, a dial-up facility to retrieve up-to-date share prices. In 1992, it introduced video conferencing facilities nationwide as well as Centrex, a virtual PABX system that allows larger organisations the option of functioning without operators, enabling customers to reach staff directly. In 1993, the nationwide digital transmission network and the Integrated Services Digital Network pilot projects were completed.

Cellular Mobile Services

Even before listing, STM had entered into a partnership with the Fleet Holdings to launch Celcom, the country's first private mobile system using Ericsson's Total Access Communication System. Private mobile systems were needed to supplement ATUR, which could no longer handle the volume of traffic it was receiving. Not long after, STM divested its 51% stake in Celcom to Alpine Resources, to start its own mobile enterprise based on the US-based Advanced Mobile Phone System. Subsequently, the Government handed out six Global System for Mobile Communications licences, but none of these were to STM. It was only in 1996 that STM was able to introduce its 1800 MHz digital TMTOUCH cellular service. In 2003, TMTOUCH merged with Celcom to form the country's largest cellular operator. Two years later, this cellular operator launched the country's first 3G service.
Meanwhile, TMB also ventured into the mobile business overseas and it obtained its first GSM licence in Sri Lanka in 1994. This was followed by licences in India and Ghana, although it relinquished its businesses in these countries within a couple of years due to political circumstances. Undeterred, TMB continued to make forays abroad and, by 2000, had a presence in South Africa, Guinea, Malawi, Cambodia, Thailand and Bangladesh. Eventually the company decided to consolidate its investments overseas and concentrate on markets closer to home. Thus by 2004, its mobile international presence was concentrated in Malaysia, Singapore, Sri Lanka, Bangladesh, Cambodia, India, Iran and Pakistan. In 2005, TMB underwent a major rebranding as TM. At the end of 2007, TM's total international cellular subscriber base stood at 30.3 million.