Malaysia’s fixed communications services market revenue set to increase at 3.9% CAGR over 2019-2024, forecasts GlobalData

Following a marginal decrease in 2020 mainly as a knee-jerk reaction to the COVID-19 crisis, the total fixed communications services revenue in Malaysia is forecast to grow at a compounded annual growth rate (CAGR) of 3.9% from US$2.2bn in 2019 to US$2.6bn in 2024, driven by growing revenues from the fixed broadband services segment, according to GlobalData, a leading data and analytics company.

GlobalData’s Malaysia Telecom Operators Country Intelligence Report reveals that robust growth projected in fiber-to-the-home (FTTH) subscriptions that yield higher average revenue per user (ARPUs) will drive fixed broadband revenues, which is expected to grow at a CAGR of 7.7% over 2019-2024. On the other hand, fixed voice services revenue will decline at a CAGR of 12.8% over 2019-2024, owing to declining circuit-switched lines and falling fixed voice ARPU.

Deepa Dhingra, Telecom Analyst at GlobalData, says: “Fiber-optic will remain the primary technology to deliver fixed broadband services in Malaysia during 2019-2024. This will be led by fiber-optic network expansions by operators and rising adoption of multi-play plans inclusive of fiber Internet, telephony, and pay-TV services. Moreover, the government’s National Fiberisation and Connectivity Plan (NFCP), aimed at improving fixed infrastructure in the country, would also support fiber-optic network expansion in Malaysia.

“Telekom Malaysia will lead the fixed voice segment during 2019-2024, on the back of its leading position in both the circuit-switched and voice over Internet protocol (VoIP) segments. Telekom Malaysia will also lead the fixed broadband segment over the forecast period, driven by its focus on offering cost effective fiber broadband bundles to drive subscription base.”

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