Malaysia’s mobile service revenue growth stagnates, but data grows

Credit: Dreamstime

Malaysian mobile carriers and resellers could experience a few lackluster years amid expectation of negligible mobile service revenue growth in the country until at least 2025, according to a new analysis.

Malaysia’s mobile service revenues are expected to grow at a negligible compound annual growth rate (CAGR) of just 0.7%, from US $ 5 billion in 2020 to US $ 5.2 billion in 2025, according to the reports. forecast from data and analytics company GlobalData.

The expected stable growth rate is largely due to a steady decline in revenues from mobile phone and mobile messaging services, according to the analyst firm.

Indeed, mobile phone and mobile messaging service revenues are expected to continue to decline over the forecast period due to a widespread shift in consumers towards over-the-top based communication platforms. (OTT).

The adoption of OTT services at the expense of voice and messaging services means that the expected growth rate of stagnant mobile service revenues will not be uniform across the range of services offered by providers.

Mobile voice service revenues are expected to decline 3.2% CAGR over the forecast period, driven by lower voice subscriptions as well as average revenue per user (ARPU) levels of voice services.

However, mobile data service revenue is expected to grow at a CAGR of 2.9%, due to the steadily increasing adoption of higher 4G ARPU services and increasing consumption of mobile data services, said GlobalData.

“4G will remain the main subscription mobile technology in Malaysia during the forecast period 2020-2025, thanks to the continued expansion of the 4G network by operators, supported by the government plan Jalinan Digital Negara … initiative to improve 4G network coverage, ”said Hrushikesh Mahananda, Associate Project Manager GlobalData.

Additionally, as the country’s major mobile service providers move forward with the deployment of their 5G network infrastructure and the Malaysian Communications and Multimedia Commission establishes a new special-purpose vehicle, Digital Nasional Berhad, for the deployment of the Nationwide 5G, mobile data consumption is likely to increase further.

During the forecast period, the average monthly data usage in Malaysia is expected to increase from 12.5 GB in 2020 to 16 GB in 2025, due to the increasing consumption of mobile video services on smartphones, thanks to the centric plans. on data offered by mobile network operators. .

According to Mahananda, Malaysian phone company Maxis Communications dominated the mobile services market in terms of subscription share in 2020 and is expected to remain the top mobile operator until 2025.

“Maxis’ market leadership will be primarily driven by its strong focus on the postpaid segment by offering promotional plans and investments in 4G network expansion, especially in rural areas,” said Mahananda.

GlobalData’s latest analysis comes as the Malaysian telecommunications market experiences major consolidation, with the country’s telecommunications conglomerate Axiata Group and Norwegian telecommunications provider Telenor signing an agreement that paves the way for the merger of their respective Malaysian mobile operations , Celcom and Digi.

The companies announced on June 21 that they had successfully completed due diligence and signed the transaction agreements for the proposed Celcom Axiata and Digi merger, which, for merger purposes, will be consolidated as “MergeCo”.

Once the combination is complete, Celcom and Digi will become Celcom Digi Berhad.



TelcoMalaysia5G keywords

Comments are closed.