Amir Hisyam Rasid
KUALA LUMPUR: Axiata Group Bhd will be making a 'significant' investment as early as next year in a move to offer high speed fixed broadband access to all parts of Malaysia at cheaper cost.
President and group chief executive officer Tan Sri Jamaludin Ibrahim said Axiata will be expanding its fixed wireless broadband throughout the country within the next two to three years.
According to technology news portals, fixed wireless broadband may be a better choice for telecommunication companies, as setting up cost for broadband services like digital subscriber line (DSL) or fibre infrastructure is expensive.
Instead of using a cable, the fixed wireless broadband brings internet signal to homes via radio waves transmitted by a base station.
"We are actually expanding our fixed broadband in Malaysia, Indonesia and Sri Lanka. Sri Lanka has been quite ahead because Dialog is there. In Peninsular Malaysia, we are looking at mostly fixed wireless as opposed to fixed fibre broadband for now.
"We have already started in Sabah and the space is less crowded. We are working on the possibility of a collaboration plan with Telekom Malaysia Bhd to use their network into some of the homes.
"We are still in discussion," Jamaludin told reporters after announcing Axiata's second quarter financial performance ended June 30, 2018 here
Axiata has posted a net loss of RM3.41 billion for the first half year period ended June 30, 2018 from a net profit of RM741.11 million in the corresponding period a year ago.
The company recorded a net loss of RM3.32 billion for the second quarter ended June 30, 2018 from RM479.08 million net profit in the corresponding period a year ago.
Jamaludin said this is mainly due to a one-off non-cash impairment provision of RM3.4 billion as a result of the de-recognition and reclassification of Idea Cellular Ltd from associate to simple investment.
The telco's revenue declined to RM5.87 billion in the quarter from RM6.06 billion in the same period last year.
Jamaludin said all of its operating companies have shown particularly strong underlying growth in revenue and earnings before interest, taxes, depreciation, and amortisation.
"Our profit after tax and minority interest, however, was affected by higher depreciation and amortisation charges due to our aggressive capex (capital expenditure) in data investment in the previous years," he added.
Axiata has proposed to declare an interim dividend of five sen per share for the quarter under review.