The fixed communications service revenue in Malaysia is set to increase at a  compound annual growth rate (CAGR) of 2.5% from $1.8 billion in 2021 to $2.1 billion in 2026 primarily led by the fixed broadband service segment, says GlobalData, a leading data and analytics company.

GlobalData’s Malaysia Fixed Communications Forecast (Q2 2022) reveals that the fixed voice service revenue in Malaysia is set to decline at a CAGR of 10.8% between 2021 and 2026 due to the continued decline in the traditional circuit-switched subscriptions.

Fixed broadband service revenue, on the other hand, is set to increase at a CAGR of 6.8% over the same forecast period, driven by the increasing availability and household penetration of fixed broadband services in the country.

Internet household penetration is expected to increase from 36% in 2021 to 47% in 2027, thanks to the ongoing fixed network infrastructure developments and expanding coverage of fixed broadband services in the country. Malaysia, under its broadband development plan JENDELA, aims to expand broadband connectivity to 7.5 million premises by 2022 under phase 1, while the second phase will focus on addressing the digital divide gaps using fiber, Fixed Wireless Access (FWA) and cellular technologies through 2025.

Subba Reddy, Telecom Analyst at GlobalData, says: “Fiber-to-the-home/building (FTTH/B) service will remain the dominant broadband service category, in terms of both subscriptions and revenue share through the forecast period owing to the rising demand for high-speed broadband connectivity and expanding fiber optic network coverage in the country. Malaysia plans to implement the Point of Presence (PoP)-based fiber-optic hub in the surroundings of schools and populated areas, which will further expand the coverage of broadband infrastructure in the country.”

Telekom Malaysia will lead the fixed telecommunication services market in 2022, with Maxis and TIME as other prominent players. Telekom Malaysia’s monopoly in the circuit- switched and strong footprint in VoIP segments will support its leadership position in the fixed voice segment through 2026. In the fixed broadband market, Telekom Malaysia is expected to maintain its leadership through 2026, supported by its strong footprint in the FTTH/B and xDSL broadband service segments and its proactiveness in extending broadband network coverage.