BMI View: Malaysia's telecommunications sector enjoys high levels of service penetration, due mainly to focused investment in advanced broadband infrastructure and supporting services and solutions. Wireless and wireline non-voice services account for an increasingly large proportion of operators' revenues, and this is encouraging them to reinvest heavily in next-generation infrastructure, including fibre-to-the-home and 4G LTE. However, an emphasis on broadband leads to falling demand for traditional v o ice telephone services has accelerated , while operator-provided mobile voice and messaging services have come under threat from network-agnostic over-the-top competitors. As BMI has already noted, this has hit operator financial performance.
Operator and regulatory data showed that the mobile market expanded within BMI's expectations in 2013. By 2018, the weighted industry average blended mobile ARPU should reach MYR44.0 (USD13.71).
Usage of wireless broadband services has been falling since Q412, most likely because customers are increasingly turning to HSPA-enabled smartphones rather than wireless modem-equipped mobile computers. This relates to increased HSPA coverage outside the principal cities, but also to the launch of 4G LTE services. Our broadband forecasts were amended accordingly, with slower growth for the short-to-medium term before accelerating markedly in the latter part of our 2013-2018 forecast period.
Key Trends & Developments
In March 2014, Telekom Malaysia (TM) acquired a 57% stake in WiMAX operator Packet One Networks (P1) for MYR350mn (USD106.4mn). The acquisition gives TM access to P1's LTE platforms and vastly increases its spectrum allocation. BMI believes access to key wireless broadband spectrum will further boost TM's ability to cater to the growing demand for data services as it continues to build out the country's high-speed broadband (HSBB) infrastructure.
In January 2014, mobile network...
The Malaysia Telecommunications Report features Business Monitor International (BMI)'s independent industry forecasts on the future strength of Malaysia's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.
BMI's Malaysia Telecommunications Report provides industry professionals and researchers, operators, equipment suppliers and vendors, corporate and financial services analysts and regulatory bodies with independent forecasts and competitive intelligence on the telecoms industry in Malaysia.
- Benchmark BMI's independent telecoms industry forecasts for Malaysia to test other views - a key input for successful budgeting and strategic business planning in the Malaysian telecoms market.
- Target business opportunities and risks in Malaysia's telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Malaysia.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI's key industry forecasts and views, covering the ICT, fixed-line, mobile (including 3G), internet and broadband markets.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the wireline and wireless sectors and within the broader political, economic and business environment.
Business Environment Rankings
BMI's Telecommunications Business Environment Rankings provides a country-comparative Risk-Reward Rankings index aimed at investors (vendors, operators and suppliers) in the regional telecoms market.
The rankings methodology makes sophisticated use of more than 40 industry, economic and demographic data points.
BMI Industry Forecast Scenario
Historic data series and forecasts to end-2018 for all key industry indicators (see list below) supported by explicit assumptions, plus analysis of key downside risks to the main forecast.
- Fixed-Line Telephony - Telephone lines ('000); telephone lines/100 inhabitants.
- Cellular Telephony - Mobile phone subscribers ('000); mobile phone subscribers/100 inhabitants; mobile phone subscribers/100 fixed line subscribers.
- Internet Markets - Internet users ('000); internet users/100 inhabitants; broadband internet subscribers ('000); broadband internet subscribers/100 inhabitants.
Market Data Analysis
Detailed market analysis of the mobile, mobile content, fixed line and internet segments, broken down into:
- Market Data - Analysis of market size, operator shares, dominant trends, competitive landscape and key quarterly data.
- Technology/Service Rollout - Analysis of rollout/adoption of new technology, such as 3G, WiMAX, IPTV, pay-TV, LTE and value-added handset services (gaming, music, video, apps etc.).
- Mobile Content - The latest trends in content and services available and being introduced by mobile operators. Including a timeline of all the latest major mobile content developments.
- Company Database - A comprehensive breakdown of KPIs of the leading mobile operators, including subscriber figures by type (pre-paid and post-paid); 3G subscriber figures; net additions; market share; ARPU; churn rates; minutes of use; voice and non-voice revenue; financial figures (including operating revenues, net profits and EBITDA).
Details of the regulatory bodies and their responsibilities, as well as a special focus on the rules surrounding competition and interconnection. The latest updates in the market's development and regulatory rulings.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses.
The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.