GOVT PAVES WAY FOR TELCOS TO INSTALL FIBRE OPTICS ALONG RAILWAY CORRIDORS

PUTRAJAYA, April 18 (Bernama) -- The government now permits licensed telecommunications companies to provide fibre optic network services along railway corridors nationwide, said Transport Minister Anthony Loke.

Loke said the decision was approved through a memorandum he presented to the Cabinet, paving the way for more companies to participate in the development of the country’s digital infrastructure.

To date, YTL Communications Sdn Bhd has been selected via a Request for Proposal (RFP) to optimise the use of national rail assets for the development of high-speed fibre optic networks.

“Previously, FiberRail Sdn Bhd held the exclusive rights to install fibre optics along all railway routes.

“With this new policy decision to implement the wayleave, other companies are now allowed to install fibre optics along railway corridors,” he said at a press conference after the Railway Assets Corporation’s (RAC) 2025 appreciation ceremony and open day today.

At the event, YTL Communications Sdn Bhd was announced as the first company to successfully secure a contract under the RFP exercise conducted by RAC in 2023 to develop fibre optic infrastructure along 1,600 kilometres of railway track stretching from Padang Besar to Johor Bahru and Tumpat, Kelantan.

Loke and Communications Minister Fahmi Fadzil witnessed the exchange of the Letter of Acceptance for the Fibre Optic Network Development between the Ministry of Transport’s secretary-general, Datuk Jana Santhiran Muniayan, and YTL Communications chief executive officer Wing K. Lee.

Loke emphasised that the rights to develop the network are not exclusive to a single entity, but open to all eligible telecommunications providers.

“This initiative ensures wider fibre optic coverage to strengthen our digital and communications infrastructure.

“At the same time, it generates additional revenue for RAC, as these wayleave agreements will provide the corporation with a recurring annual return,” he said.

Meanwhile, in its statement, the RAC said that the liberalisation of telco infrastructure development along the corporation’s railway corridors is a strategic initiative to support the national digital transformation agenda.

“This initiative aims to open access to licensed telco providers through an RFP process, while optimising the use of national rail assets for the development of high-speed fibre optic networks.

“It is expected to generate new revenue streams for RAC and, at the same time, reduce reliance on government funding for development,” the statement read.

RAC added that the revenue generated will be reinvested into the development and enhancement of the rail industry, including the maintenance of rolling stock, railway stations and improvements to facilities.

-- BERNAMA