Telekom Malaysia, the country's largest fixed-line phone operator, is able to finance a proposed 11.3 billion Malaysian ringgit ($3.14 billion) high-speed broadband project using its own funds, a top company official said today.
But the firm has not ruled out using other forms of financing for the project.
"We have a very strong cash position and therefore, we will be able to support this project using our own resources but that will not stop us from looking at other means of getting funds to invest into this project," said Zamzamzairani Mohd Isa, Telekom Malaysia's group CEO.
Telekom Malaysia is looking at its broadband operations to drive future growth as its fixed-line business is stagnating and after it spun off its mobile-phone assets in April last year.
Analysts had feared the fixed-line provider would run into financing difficulties with the financial crisis deepening.
However, Zamzamzairani was optimistic the current economic turmoil would not have a significant impact on earnings.
"[The impact will be] very minimal but neither are we expecting huge growth either. It will be single-digit [revenue growth]," he said.
Telekom Malaysia also expects its unit TM International to meet its April commitment to repay a 4.03 billion ringgit debt to the parent company, he said.
"There is no indication that they will not meet their commitment, so as far as we are concerned it's status quo," said Zamzamzairani.
Earlier, Telekom Malaysia agreed to jointly develop an Internet protocol hub for the Asian region with Verizon Business, a unit of Verizon Communications.
The companies declined to provide investment details.
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