Network disruption (Telekom Malaysia)

The group witnessed network disruptions in the recent times. In January 2010, the group announced a disruption of its internet services due to circuit faults on the Asian American Gateway (AAG) submarine cable network at Lantau in China and at the domestic international link at Genting Sempah, Pahang, linking Malaysia to the US and Hong Kong.

TM is committed to ensuring network and service availability to uphold its quality of service. However, some factors that affect service availability are beyond its control, such as cable theft, cable damage during road works, and natural calamities such as lightning. The group has put in resources to control such risks with programs like I-Watch for cable theft, road patrols to reduce cable cut risk, and flood mitigation programs. TM has also set up a Service Assurance Centre (SAC) and put in place a comprehensive Business Continuity Management (BCM) program to ensure minimum disruption to service.

Network disruptions will have an adverse effect on the quality of services, which in turn may lead to loss of customers. … "Network disruption (Telekom Malaysia)" has a significant impact, so an analyst should put more weight into it. "Network disruption (Telekom Malaysia)" will have a long-term negative impact on this entity, which subtracts from the entity's value. This statements will have a short-term negative impact on this entity, which subtracts from its value. This qualitative factor will lead to an increase in costs. This statement will lead to a decrease in profits. "Network disruption (Telekom Malaysia)" is a difficult qualitative factor to overcome, so the investment will have to spend a lot of time trying to overcome this issue.