Green Packet secures contract to supply 3.6 million set-top boxes
PETALING JAYA: Green Packet Bhd has bagged a contract to supply 3.6 million set-top boxes for MYTV Broadcasting Sdn Bhd for two years.
MYTV is the company tasked by the Government to handle the free-to-air TV migration from the existing analog system to digital.
In a filing with Bursa Malaysia, Green Packet said that under the contract, MYTV would issue purchase orders from time to time to supply up to 3.6 million set-top boxes.
It is understood that these set-top boxes will be the devices in homes that will receive the new free-to-air digital signals for home TV viewing, replacing the old antennas.
The Government has said that a total of 4.2 million BR1M (1Malaysia People’s Aid) households will receive free MYTV decoders.
“The total value of the contract will depend on the issuance of purchase orders by MYTV,” it said.
This confirmed StarBiz Premium’s report on Jan 17, that Green Packet is close to inking a deal to supply set-top boxes to MYTV.
It was said that the deal could potentially be worth up to RM300mil.
Green Packet said the contract would contribute positively to its earnings for the financial year ending Dec 31, 2018 onwards until the expiry of the contract.
“The contract will be funded through internal funds or trade financing,” it said.
Shares in Green Packet closed unchanged at 55.5 sen yesterday.
Besides winning the contract to supply these boxes, indications are that Green Packet will also be operating a few of the many channels that will run on the new digital free-to-air system.
Just last month, Green Packet signed a deal with Hong Kong’s Asia Television, which has agreed to pump in HK$50mil into a joint venture between both companies.
The JV aims to jointly operate three broadcasting television channels in Malaysia which may comprise a Chinese language movie channel, a Chinese language general entertainment channel and a home shopping channel.
Green Packet, after selling its wireless broadband business to Telekom Malaysia Bhd, is now going into selling services through the Internet.
In January, Green Packet completed the acquisition of an 80% equity interest in Webonline Dot Com Sdn Bhd, a Bank Negara e-wallet licence holder.
The TV business is part of Green Packet’s move to reinvest itself into the technology space, the other two areas being fintech and Internet-of-Things.