Malaysian mobile network operator YTL Communications has been awarded a contract to deploy fiber optic infrastructure along 1,600km (994 miles) of railway tracks from Perlis to Johor and Kelantan.

Railway Assets Corporation (RAC) announced the awarding of the contract to YTL this week.

RAC put the tender for the contract out back in 2023 as part of Malaysia’s National Broadband Plan and the National Digital Network (Jendela).

The main goal of the fiber deployment project is to use railway assets to deploy part of the country's digital network backbone.

RAC's decision to award the contract to YTL ends the fiber rail monopoly that has been held by Telekom Malaysia's Fiberail. Fiberail operates a 5,500km fiber optic network across Malaysia.

“After going through the RFP process, YTL Communications was selected because they offered the highest returns to RAC in their proposal. However, it’s important to note that this is not exclusive to YTL Communications," said Transport Minister Anthony Loke Siew Fook as reported by Malay Mail.

“We have made it clear that there is no longer any exclusivity. From time to time, we will consider other telecommunications providers as well. This is to ensure, firstly, that we have more fiber optic networks in place to improve our digital reach and communications infrastructure."

RAC noted that its new wayleave agreement with YTL will not impact existing exclusive rights held by Fiberail under a separate wayleave agreement with railway operator Keretapi Tanah Melayu (KTM) which is valid until 2032. KTM owns 35.99 percent of Fiberail.

Founded in 2010, YTL is Malaysia's fifth-largest mobile carrier.