KUALA LUMPUR (April 18): YTL Communications Sdn Bhd, a 60%-owned unit of YTL Power International Bhd (KL:YTLPOWR), has been appointed by Railway Assets Corp (RAC) to develop fibre optic infrastructure along 1,600km of railway track from Perlis to Johor and Kelantan.

YTL Communications was selected following RAC’s request for proposal (RFP) in 2023, the latter said in a statement.

The RFP is part of an initiative to open up the development of telecommunications infrastructure along RAC's rail corridors to licensed telecommunications industry players, it said.

The infrastructure will be the backbone to national digital connectivity, in line with the National Broadband Plan and the National Digital Network or Jendela, the statement added. The project value and tenure was not disclosed.

The move would “optimise the usage of national rail assets for the development of high-speed fibre optic network”, RAC added.

“Previously, Fiberail Sdn Bhd held the exclusive rights to install fibre optics along all railway routes,” said Transport Minister Anthony Loke who officiated the announcement.

“With this new policy decision to implement the wayleave, other companies are now allowed to install fibre optics along railway corridors,” Loke said.

“The government is confident that by opening access to more service providers through the rail corridor, it will increase healthy competition, expand digital coverage and reduce costs to the public,” he said.

Fiberail is 53.99%-owned by Telekom Malaysia Bhd (KL:TM). Another 35.99% is owned by Keretapi Tanah Melayu Bhd (KTM), while the remaining 10.01% is owned by Petrofibre Network (M) Sdn Bhd.

Fiberail operates 5,500km of fibre optic network nationwide via railway and gas pipeline corridor, its website showed.

The group posted net profit of RM26.44 million in the financial year end Dec 31, 2023 (FY2023), on revenue of RM210.05 million, for a net margin of RM12.59%.

In the statement, RAC said that the liberalisation will not affect existing exclusive rights held by Fiberail via a Wayleave agreement with KTM which is effective until 2032.

“All new developments will be conducted through joint technical negotiations, without disturbing existing infrastructure. RAC is committed to ensure the roll-out adheres to existing agreements, while opening the market in a transparent and inclusive manner,” the statement read.

All in all, the initiative is expected to generate a new income stream for RAC, to be channelled towards maintenance of stations and trains, improvement of facilities, development of new stations, electrification, and reducing reliance on government's development expenditure.

YTL Communications managing director Datuk Seri Yeoh Seok Hong said the group is honoured to collaborate with the RAC towards transforming rail corridors and driving the nation’s digital inclusivity.

“This initiative is an important step towards opening up more high speed internet access for the public's benefit,” Yeoh said.

Shares of YTL Power closed up six sen or 1.91% or RM3.20, giving it a market capitalisation of RM26.548 billion.