Malaysia: High-Speed Broadband Project to Fuel Telecom Capex and Revenue Surge
Pyramid Research, Inc, August 2010
Malaysia will be among the fastest-growing markets in Asia/Pacific due to operators' aggressive capex plans in broadband – both fixed and mobile – spurred in part by the government's plans for a high-speed broadband network, according to a new report.
Malaysia: High-Speed Broadband Project to Fuel Telecom Capex and Revenue Surge offers a precise profile of the country's telecommunications, media, and technology sectors based on proprietary data from our research in the market. It provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies.
Pyramid expects Malaysia's telecommunications services market to grow at a CAGR of 9.7 percent during the forecast period, from $9.8 billion in 2010 to $15.5 billion in 2015. This high rate of growth will be supported by a strengthening economy and rising demand for fixed and mobile broadband services.
"One of the most attractive opportunities for service providers in Malaysia lies in the mobile data market, which will generate a combined $22 billion over the next five years and will increase at a CAGR of 19.1 percent between 2010 and 2015. Specifically, we expect to see significant growth in the mobile broadband market, which will increase at a CAGR of 33.7 percent to reach $1.3 billion in 2015," says Tae-Hyung Kim, Senior Analyst at Pyramid Research, and co-author of this report. Driven by mobile broadband adoption, 3G expansion will increase rapidly over the next few years so that by year-end 2012, three-quarters of handsets will be 3G-capable, matching 3G penetration in Singapore and making Malaysia one of the most advanced adopters of 3G in Asia/Pacific.
The build-out of the HSBB network should also present attractive opportunities to operators in the fixed broadband space. "The opportunities will reside not only in the provision of connectivity services but the higher speeds that these connections will enable operators to push applications, the first of which will be pay-TV entertainment services enabled by IPTV. Fixed broadband will experience an even higher rate of growth, a 23 percent CAGR, enabling fixed broadband revenues to almost triple during the forecast period," notes Kim.
Executive Summary
Market and Competitor Overview
- Malaysia in a regional context
- Economic, demographic and political context
- Regulatory environment
- Demand profile
- Service evolution
- Competitive landscape
- Major market players
Segment analysis
- Mobile services
- Fixed services
- Pay-TV
Identifying Opportunities
The Malaysian telecom market generated RM30.1bn ($8.5bn) in service revenue in 2009, a slight increase over 2008 levels. The increase is impressive given the fact that the economy contracted 1.7% during the course of the year, negatively impacting consumer purchasing power. Going forward, we expect Malaysia’s telecommunications services market to grow at a CAGR of 9.7% during the forecast period, from $9.8bn in 2010 to $15.5bn in 2015. This high rate of growth will be supported by a strengthening economy and rising demand for fixed and mobile broadband services.
Pyramid Research projects that revenue from mobile data services will increase at a CAGR of 19.1% over the forecast period, reaching $5.3bn in 2015. Fixed broadband will experience an even higher rate of growth, a 23% CAGR, enabling fixed broadband revenues to almost triple during the forecast period. We believe that there is untapped demand in the fixed broadband market and operators — using copper, fiber and wireless technologies — are increasing their efforts to fill this void. For example, TM is building the HSBB network in metropolitan areas, while WiMAX and mobile operators are increasing their network coverage and capacity. Mobile incumbent Maxis is already trialing LTE and is hoping to win a 70MHz block in next year’s auction.
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