PETALING JAYA: Theta Edge Bhd’s wholly owned subsidiary Theta Telecoms Sdn Bhd (TTEL) has been appointed as the network operator and strategic partner by Prasarana Integrated Development Sdn Bhd for the development of a telecommunication common network infrastructure along the Shah Alam Line right of way.
Theta Edge said TTEL accepted the letter of acceptance from Prasarana on Sept 7, according to a filing with Bursa Malaysia today.
Under the project, TTEL will design and engineer the network, undertake civil works and fibre optic cable installation, integrate the infrastructure with existing commercial fibre optic networks and install network equipment.
TTEL will also install, maintain and service the required hardware, provide telecommunications services and generate revenue from the project, with recurring revenue to be shared with Prasarana at an agreed rate.
The group said there is no fixed contract value for the project.
The initial contract period is five years commencing Sept 1, 2026, with the option for two successive five-year renewal periods, subject to Prasarana’s assessment of TTEL’s performance and compliance with the terms of the letter of acceptance.
Under the revenue-sharing arrangement, Prasarana is entitled to a minimum of RM500,000 per annum or 13% of the project’s gross revenue, whichever is higher, while the remaining revenue will accrue to TTEL.
Theta Edge said the project would allow it to leverage its existing expertise and venture into a recurring income-generating project, providing a steady stream of revenue and cash flow while capitalising on future data demand growth in the area.
The project will be financed through internally generated funds or borrowings.
Theta Edge said the project is in the ordinary course of business and does not require shareholders’ approval. Its board also said the project is in the best interests of Theta Edge and TTEL.
