Malaysia: Fixed comm services revenue to grow at 0.7% CAGR
June 25, 2024
The fixed communication services revenue in Malaysia is predicted to increase at a compound annual growth rate (CAGR) of 0.7 per cent from $1.87 billion (€1.74bn) in 2023 to $1.94 billion in 2028, supported by the fixed broadband service segment, forecasts GlobalData, the data and analytics company.
GlobalData’s Malaysia Fixed Communications Forecast (Q1 2024) reveals that the fixed voice service revenue will decline at a CAGR of 12.3 per cent over 2023-2028 due to the continued drop in circuit-switched subscriptions and a decline in fixed voice average revenue per user (ARPU) levels with users continuing to shift from traditional telephony to mobile/OTT communication services.
Fixed broadband service revenue, on the other hand, will increase at a CAGR of 4.5 per cent during 2023-2028, driven by the growing adoption of higher ARPU fibre-optic (FTTH/B) services.
Srikanth Vaidya, Telecom Analyst at GlobalData, commented: “Fibre lines are estimated to account for about 97 per cent share of the total fixed broadband lines in 2023 and will remain the leading broadband technology through 2028. This is due to the high demand for high-speed broadband connectivity and efforts by the government and telecom operators to upgrade and expand fibre broadband infrastructure in the country. Telekom Malaysia will lead both fixed voice and fixed broadband segments by subscriber share through 2028. The telco’s leading position in the fixed broadband segment is driven by its strong presence in the FTTH/B service segment and continued focus on fibre network expansions. For instance, Telekom Malaysia, under the 12th Malaysia Plan, aims to deploy 4,370 fibre-optic network hubs in the country by 2025, with majority of them being installed in rural areas to bring better and faster internet connectivity to homes.”