KUALA LUMPUR (June 13): Telekom Malaysia Bhd’s (TM) wholly owned unit GITN Sdn Bhd on Tuesday (June 13) inked a 10-year concession extension for MyGov*Net with the government.

This follows the telecommunications provider’s announcement in January of the acceptance of a letter of implementation from the government for the extension of the MyGov*Net concession for 10 years — from Jan 1 this year until Dec 31, 2032.

The value of the latest MyGov*Net concession, known as MyGov*Net 2.0, is capped at RM4.9 billion, inclusive of 6% sales and service tax.

The scope of work is to provide a secured integrated telecommunication network for the government that connects more than 10,000 government premises in Malaysia and Malaysian embassies overseas.

“MyGov*Net 2.0 will contribute positively to earnings and net assets of the TM group for the current financial year ending Dec 31, 2023, and over the concession period,” said TM in a bourse filing.

MyGov*Net (previously known as 1Gov*Net) is the government’s integrated telecommunications network that is centrally managed by the Malaysian Administrative Modernisation and Management Planning Unit.

The project was a private-public sector collaboration implemented through a build-operate-own method. It was approved by the government in 2012. GITN was awarded with a 10-year concession, which started on Jan 1, 2013.

TM’s share price closed unchanged at RM5 on Tuesday, giving it a market capitalisation of RM19.11 billion.