Market Trends of Malaysia Telecom Industry
This section covers the major market trends shaping the Malaysia Telecom Market according to our research experts:
Growing demand for Wireless Services
- Fiber-to-the-home/building (FTTH/B) service will remain the dominant broadband service category. The increase in wireless broadband services will drive the telecom market growth positively. Also, key players in the telecom market are expanding their wireless broadband network capacity to 5G networks. For Instance, Telekom Malaysia plans to extend its broadband network coverage from 3G and 4G to 5G networks.
- The government of Malaysia announced a multi-billion dollar national digital infrastructure plan, Jalinan Digital Negara (JENDELA), to improve the country's digital infrastructure and connectivity. As a part of this approach, the initiative will strengthen existing 4G networks and establish a solid foundation for 5G. The JENEDELA plans to build full-fiber networks for homes, businesses, and government buildings covering 98% of the population by the end of 2025, as well as providing 100% 4G coverage with a minimum speed of 100 Mbps.
- The wireless broadband market is now experiencing substantial growth driven primarily by developments made by key players in the market, namely TIME, Celcom, Maxis, and DiGi, with Telekom Malaysia. For Instance, this year- Celcom introduced its free fiber connectivity for Malaysian at a special price of RM 245 per month.
- During the COVID-19 pandemic and post-COVID-19 scenario, most people preferred work-from-home mode, thus creating more demand for wireless services. These fixed broadband services can provide high-speed internet services. Key players in the market are now concentrating on expanding their broadband services that support 5G networks.
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Growing demad for OTT Services
- The covid-19 pandemic has accelerated the trend for people to opt for entertainment at home and thus increased the active usage of OTT streaming services.
- Active collaboration with telecom industry players will bring new growth opportunities for OTT service providers. For Instance, In September 2022, aha, one of India's leading regional language OTT (Over-the-top) platforms, launched in Malaysia with a robust content offering for the local Tamil diaspora. Such new initiatives across OTT service providers will further help grow the market.
- Astro Malaysia Holdings Bhd is working to become the number one streaming service aggregator in Malaysia with Astro Go, Disney+ Hotstar, Netflix, TVBAnywhere+, HBO Go, and iQiyi available on its platform, with plans to onboard six more channels by the end of 2023. OTT services providers look for opportunities to strengthen their digital, broadband, and commerce businesses.
- The increasing internet penetration will significantly increase the demand for OTT services. According to the Digital 2022 report, there were 29.55 million internet users in Malaysia till January 2022. Malaysia's internet penetration will be 89.6% of the total population by the end of 2022.
