The Malaysian government has awarded a $3.4 billion high speed broadband infrastructure development contract to Telekom Malaysia.

The Malaysian government has awarded a $3.4 billion high speed broadband infrastructure development contract to Telekom Malaysia. The government will fund $727 million, or 21 per cent of the project cost, while the rest of the contract value will be borne by Telekom Malaysia. The contract will be spread over 10 years.

With a low broadband penetration of around 5 per cent, the government has set a target to raise it to about 15 per cent by 2010.