KUALA LUMPUR, Dec 17 ― Telekom Malaysia Bhd's (TM) term sheet agreement with Digital Nasional Bhd for the fibre leasing service with a total contract value of RM2.0 billion over 10 years is expected to contribute positively to the telecommunication company's (telco) future earnings in the long run, said MIDF Amanah Investment Bank Bhd.

The investment bank has maintained its "Buy” call on TM with an unchanged target price pending more details on the agreement.

"We like TM as it is poised to benefit from the pandemic fuelled fibre broadband adoption alongside with it being the nation’s main fixed-line player. We believe the Group’s revenue growth, across its main revenue clusters, namely Unifi, TM One and TM Wholesale will remain intact,” it said in a research note today.

TM has inked a term sheet with DNB for the Fibre Leasing Service and the former would serve DNB’s 5G infrastructure needs in supporting the government’s aspiration to speed up 5G rollout in Malaysia.

At 11.03am, TM shares was up four sen to RM5.29 with 322,100 shares changing hands. ― Bernama