Malaysia’s mobile data traffic will grow at CAGR of 10.18% between 2019 and 2024, forecasts GlobalData

Malaysia’s mobile data traffic is projected to grow at a compound annual growth rate (CAGR) of 10.18% from 4.6 million terabyte (TB) in 2019 to 7.5 million TB by the end of 2024 due to increase in smartphone subscriptions and rise in data consumption led by 4G subscribers, forecasts GlobalData, a leading data and analytics company.

According to GlobalData’s Asia-Pacific Mobile Broadband Forecast Pack, 4G subscribers accounted for 64.82% of the total mobile subscriptions and 70.54% of the total data traffic in 2018, led by the increase in population coverage of Long Term Evolution (LTE) network.

Akash Jatwala, Research Analyst of Telecoms Market Data & Intelligence at GlobalData, says: “Reduction in the prices of smartphones, along with growing Internet connectivity penetration and shift of mobile network operators (MNOs) to latest generation technologies will fuel the demand for data traffic during the outlook period.”

IMAGE FOR PUBLICATION: Please click here for enlarged chart

Surge in the consumption of mobile data by means of over-the-top (OTT) based contents and communication services through smartphones are set to drive the demand for mobile data. In addition, OTT service providers have lower subscription tariff than those of traditional players, which will further boost the growth of OTT services.”

Digi Telecommunications is forecast to lead the mobile broadband market through 2024, driven by the widest penetration of 4G connectivity and attractive plans. Maxis Communications will follow Digi but lead the early deployment of 5G.

The average monthly churn rates in Malaysia will fall from 3.3% in 2019 to 2.9% by 2024, as MNOs promote subscription-based plans with bundled voice and data to retain customers.

Prepaid data traffic is set to grow at a CAGR of 8.45%, whereas post-paid data traffic will grow at a CAGR of 13.55% during the outlook period, as MNOs are promoting contract-based subscription plans to retain customers and to maintain their place in the competitive landscape.

Jatwala concludes: “In Malaysia, Digi Telecommunications and Maxis Communications are two dominant players, which own nearly half of the Malaysian mobile subscribers. Attractive contract-based subscription plans and wider population reach of 4G and 5G preparedness will help them to maintain their dominant position in the market. In addition, cheap plans by OTT content providers along with increase in usage of OTT messaging services will boost the data consumption in the country during the outlook period.”

More Media