KUALA LUMPUR (May 2): Newly listed telecom services firm Reach Ten Holdings Bhd (KL:REACHTEN) said its fibre optic segment may be its next big business amid rising infrastructure demand across Sarawak.
While the satellite-based services segment currently accounts for nearly 90% of revenue, the fibre segment holds “much untapped potential,” Reach Ten managing director Leo Chin said at a press conference after the company’s Main Market debut on Bursa Malaysia on Friday.
“We believe the fibre business will pick up strongly,” he said. “We expect to generate significant revenue from that segment.”
Reach Ten has built over 200km of fibre duct infrastructure across Kuching and Samarahan over the past 14 years. Proceeds from its initial public offering (IPO) will help the company to triple its network reach by laying an additional 550km of underground ducts within three years.
The company’s fibre services cater mainly to enterprise clients and government-related facilities. The strategy now is to capitalise on growing digitalisation in underserved and semi-urban regions of Sarawak, with Bintulu identified as the next catalyst for growth, Chin noted.
WATCH: Fibre business could be Reach Ten’s next leg of growth
Crosshead: Starlink sales gaining traction
On its satellite-based services, Chin emphasised that the segment will see growth in the next three- to five years, especially as the company penetrates deeper into remote areas.
“Satellite is often seen as a sunset industry, but that’s not accurate,” Chin said. “Globally, the satellite sector is growing, with massive investments being made — just look at Starlink and new low-earth orbit players from China.”
Reach Ten has already begun monetising its February 2025 agreement with SpaceX, which grants the company authorised reseller rights for Starlink hardware and satellite broadband services across Malaysia and the region.
More than 200 Starlink sites have already been installed, and market response has been encouraging, Reach Ten executive director Lu Pak Lim said at the same press conference.
“We’ve received many inquiries, both by phone and email. The business is still in its early stages, but we are confident about its future contribution,” Lu said. “Margins are currently thinner than our legacy satellite business, but once we achieve economic scale, we expect profitability to improve.”
Read also:
Reach Ten rises after weak open on first day of Main Market debut