The total telecom and pay-TV services revenue in Malaysia is expected to increase at a compound annual growth rate (CAGR) of 1.9%, from $7.7 billion in 2023 to $8.5 billion in 2028, supported by mobile data and fixed broadband service segments, according to GlobalData, a leading data and analytics company.

GlobalData’s Malaysia Telecom Operators Country Intelligence Report states that the mobile voice service revenue will decline over the forecast period in line with the steady decline in mobile voice service ARPU, with users increasingly shifting to OTT-based communication apps.

Mobile data service revenue, on the other hand, will continue to grow driven by increasing data consumption over wireless networks aided by the widespread availability of data-centric plans offered by operators, and rising adoption of higher ARPU 5G service plans.

Srikanth Vaidya, Telecom Analyst at GlobalData, says: “4G services accounted for a majority share of total mobile subscriptions in Malaysia during 2023. However, this will decline drastically over the forecast period due to subscribers’ migration to 5G services.

“5G subscriptions will increase at a rapid pace and surpass 4G in 2026, driven by network expansion initiatives by the government and operators. For instance, the government of Malaysia plans to expand 5G coverage to about 85% of the rural population across the country by 2024-end.”

Fixed broadband service revenue will increase from $1.3 billion in 2023 to $1.7 billion in 2028, at a CAGR of 4.5%, driven by growth in the adoption of higher-ARPU fiber services and growth in fixed wireless subscriptions. Fixed voice service revenue, on the other hand, will decline to $276 million in 2028, due to continued losses in circuit-switched subscriptions and declining voice ARPU levels.

Vaidya adds: “Growing demand for high-speed broadband connectivity and government and operators’ focus on fiber-optic network expansion in the country will support growth of fiber broadband subscriptions over the forecast period. For instance, in December 2023, Maxis extended its partnership with Telekom Malaysia (TM) to access high-speed broadband services (HSBB) until 2029. TM’s HSBB services complements Maxis’ own-built fiber network and allows the latter to offer competitive broadband plans and expand its reach in Malaysia.”

Pay-TV service segment will see a steady decline in subscriptions over the forecast period, due to subscription losses in the DTH and IPTV segments as a result of growing adoption of OTT video alternatives.

Vaidya concludes: “CelcomDigi led the mobile market segment in Malaysia, by subscription share in 2023. It will retain its leadership in the mobile services segment, supported by its strong focus on 5G and 4G LTE network expansions and wide ranging prepaid and postpaid plans serving diverse needs of its customers. In the fixed broadband segment, Telekom Malaysia led the market, supported by its strong network infrastructure, with a robust presence in fiber optic and DSL technologies.”