Source: GlobalData
Fixed communication services revenue in Malaysia to grow at 1.8% CAGR during 2024-2029, forecasts GlobalData
Posted in Technology
The fixed communication services revenue in Malaysia is expected to increase at a compound annual growth rate (CAGR) of 1.8% from $1.9 billion in 2024 to $2.1 billion in 2029. This growth will be driven by the increasing demand for fixed broadband, particularly fiber-optic services, while fixed voice services are expected to decline due to the shift towards mobile and OTT communications. Telekom Malaysia is set to remain a leader in both segments, reveals GlobalData, a leading data and analytics company.
GlobalData’s research reveals that the fixed voice service revenue will decline at a CAGR of 8.9% over 2024-2029 owing to consumer shift from traditional telephony to mobile/over-the-top (OTT) based communication services and the subsequent decline in voice service average revenue per user (ARPU) levels.
Fixed broadband service revenue, on the other hand, will increase at a CAGR of 4.4% during 2024-2029, driven by the growing adoption of higher ARPU fibre-optic (FTTH/B) services.
Pradeepthi Kantipudi, Telecom Analyst at GlobalData, says: “Fiber lines accounted for more than 97% share of the total fixed broadband lines in 2024 and will remain the leading broadband technology through 2029. This growth in fiber lines will be driven by the growing demand for high-speed broadband connectivity and efforts by the government and telecom operators to upgrade and expand fiber broadband infrastructure in the country.”
Telekom Malaysia will lead both fixed voice and fixed broadband segments by subscriber share through 2029. The telco’s leading position in the fixed broadband segment is driven by its strong presence in the FTTH/B service segment and continued focus on fibre network expansions. For instance, Telekom Malaysia in partnership with government and under the 12th Malaysia Plan, aims to deploy 4,370 fiber-optic network hubs in the country by the end of 2025 with majority of them to be installed in rural areas to bring better and faster internet connectivity to homes. This project is expected to further boost digital connectivity and economic development for Malaysia.
Kantipudi concludes: “As fixed voice services continue to decline, the expansion of fiber infrastructure will play a pivotal role in supporting economic growth and bridging the digital divide, particularly in underserved rural areas.”
Information based on GlobalData’s Malaysia Fixed Communication Forecast (Q4 2024), which quantifies current and future demand and spending on fixed voice and data services. The data is published quarterly.