Last updated: 21 Oct 2026 Update History
Report Status: Current
Report Pages: 202
Analyst: Henry Lancaster
As part of a diverse range of economic development initiatives, Malaysia has enabled and encouraged open competition in its telecommunications market. The result is very high penetration in both the mobile and mobile broadband segments, and near-universal LTE coverage. Growth in the 5G sector has been very rapid since services were launched in 2022. The country in mid-2026 completed the transition from its single wholesale 5G network model to a competitive dual-network framework.
The incumbent telco Telekom Malaysia retains an almost monopolistic hold on the fixed-line market and has a significant lead in the fixed broadband segment. The company has largely scrapped its legacy copper network in preference for fibre. More fibre networks are being deployed around the country to complement Telekom Malaysia’s national backbone. Operators such as Maxis have seen rapid growth in the number of fibre subscribers, in part due to the migration of existing fixed wireless broadband subscribers to faster fibre networks.
Consumers are the main beneficiaries of the highly competitive market. They enjoy widespread access to high-speed mobile services as well as attractive offers on bundles to encourage greater data use while competition keeps end-user prices low. The downside is that Malaysia’s MNOs and MVNOs have struggled to increase revenue in line with growth in the number of subscribers and with greater demand for broadband data. While the operators have successfully migrated a significant proportion of customers from prepaid to higher-value postpaid accounts, ARPU remains under pressure due to competitive pricing. The overcrowded mobile market saw some consolidation in 2022 when Digi and Celcom merged, creating CelcomDigi. The new entity is better placed to provide cheaper services to customers through improved economies of scale.
Telekom Malaysia, TIME dotCom, Maxis Communications, Celcom Axiata, Digi, CelcomDigi, U Mobile, Altel
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