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Asia-Pacific Market Perspective / Vol. 9, Issue 2, Edition 1
Pyramid Research, Inc., Jan 2009
In Malaysia’s Broadband Market, 3G Takes the Lead While WiMAX Assists
EVENT SPOTLIGHT
Despite heavy lobbying from competitors, Telekom Malaysia (TM), the incumbent operator in Malaysia, won a contract worth US$3.3bn (RM11.3bn) to build Malaysia’s high-speed broadband (HSBB) project. The government has high hopes for this high-speed network as it aims to increase Malaysia’s broadband penetration to 50% of households by 2010. This is an uphill battle considering that by year-end 2008, Malaysia’s household fixed broadband penetration rate stood at less than 17%. The HSBB, however, is not the only deal that the regulator is placing its bets on to increase the country’s lackluster broadband connectivity. The regulator also aims to increase broadband penetration rates through the deployment of wireless broadband technologies. In addition to awarding 3G licenses in 2005, the regulator issued four WiMAX licenses in 2007. As of year-end 2008, all four operators have successfully launched commercial WiMAX services in Malaysia.
Although one single technology will not be able to significantly lift Malaysia’s broadband penetration rate, Pyramid Research believes that the combination fixed broadband, WiMAX and especially 3G will triple Malaysia’s broadband penetration rate from year-end 2008 levels of 5.7% to 17.5% by 2013.
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