Malaysia Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Last updated: 19 Dec 2024 Update History

Report Status: Current

Report Pages: 175

Analyst: Henry Lancaster

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Summary
Table Of Contents

U Mobile secures right to build Malaysia’s second 5G network

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 levels in both the mobile and mobile broadband segments, and near-universal coverage of LTE networks. Growth in the 5G sector has been very rapid since services were launched in 2022, and by September 2024 5G accounted for 38% of all mobile broadband subscriptions. While the higher data traffic has impacted on average mobile broadband speeds, they remain triple the minimum rate originally aimed at for the service.

The incumbent telco Telekom Malaysia retains an almost monopolistic hold on the fixed-line market, as well as a significant lead in fixed broadband. The company has discontinued connectivity via its legacy copper network in preference for fibre. There is effective market competition as more fibre networks are being deployed around the country to complement Telekom Malaysia’s national backbone. Operators such as Maxis have seen a rapid growth in the number of fibre subscribers, in part due to the migration of its existing fixed wireless broadband subscribers to the faster fibre network.

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 because of 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.

As for 5G, the government initially decided on a single 5G network managed by a newly created operator, DNB, which would provide wholesale access to the MNOs, each of which being shareholders. However, a two-network model was developed in 2023, and in November 2024 U Mobile secured the rights to act as the second 5G network operator to compete with DNB.

Key Developments

JENDELA+ project nears completion, with two new data centres built.
REDtone becomes a reseller for Starlink’s satellite broadband service.
Government transitions Malaysia’s 5G deployment from a single operator model to a dual network model and awards U Mobile the right to build the second 5G network.
CelcomDigi aiming to create healthcare tourism hub for the region.
U Mobile secures the right to build Malaysia’s second 5G network.
CelcomDigi completes 75% of its national network integration and modernisation project.
Report update includes the regulator's telecom sector data to September 2024 and annual report for 2023, telcos' operating and financial data to Q3 2024, Telecom Maturity Index charts and analyses, recent market developments.

Key companies mentioned in this report:

Telekom Malaysia, TIME dotCom, Maxis Communications, Celcom Axiata, Digi, CelcomDigi, U Mobile, Altel

Key statistics
Regional Asia market comparison

Market characteristics
Market Leaders
Market Challengers
Market Emergents
TMI vs GDP
Mobile and mobile broadband penetration
Fixed versus mobile broadband penetration

Country overview
Telecommunications market
Regulatory environment

Regulatory authority
Fixed-line developments

Telecom sector liberalisation
Communications and Multimedia Act 1998
Privatisation
Universal Service Provision (USP)
Communication Infrastructure Planning Guidelines (GPP-I)

Mobile network developments

Mobile Number Portability (MNP)
Spectrum
Quality of Service

Mobile market

Market analysis
Mobile statsistics
Mobile infrastructure

5G
4G (LTE)
3G
Mobile broadband

Major mobile operators

Maxis Communications
Digi Communications
Celcom Axiata
CelcomDigi
U Mobile
MVNOs

Fixed-line broadband market

JENDELA
JENDELA+
Broadband statistics
Fixed broadband service providers

Telekom Malaysia
Time dotCom

DSL
Fibre-to-the-Premises (FttP) networks
Other fixed broadband services

Wi-Fi
WiMAX
Satellite broadband

Fixed network market

Major network operator

Telekom Malaysia

Telecommunications infrastructure

High-Speed Broadband (HSBB) network
National Fiberisation and Connectivity Plan (NFCP)
International infrastructure

International gateways
Internet exchange points
Satellite communications
Submarine networks
Submarine system developments

Smart infrastructure

Internet of Things (IoT)
Smart Cities

Digital economy

e-economy
e-health

Appendix – Historic data
Glossary of abbreviations
Related reports

List of Tables

Table 1 – Top Level Country Statistics and Telco Authorities – Malaysia – 2024 (e)
Table 2 – Change in the market capitalisation of the telecom sector – 2018 – 2023
Table 3 – Development of telecom sector revenue – 2018 – 2023
Table 4 – Change in the share of telecom sector revenue by key operator– 2019 – 2023
Table 5 – Development of telecom sector capex by sector (RMB billion) – 2018 – 2023
Table 6 – Change in the number of license by type – 2022 – 2023
Table 7 – Change in the number of network licences by type – 2014 – 2023
Table 8 – Change in the number of mobile number portings – 2012 – 2023
Table 9 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Table 10 – Change in the number of contract and prepaid mobile subscribers and market share – 2012 – 2024
Table 11 – Decline in SMS traffic – 2012 – 2023
Table 12 – Change in average mobile ARPU among MNOs (RMB/month) – 2017 – 2023
Table 13 – Development of LTE and 5G coverage in populated areas – 2020 – 2023
Table 14 – Change in the number of Digi’s LTE subscribers – 2015 – 2020
Table 17 – Change in the market share of mobile subscribers by MNO – 2012 – 2023
Table 18 – Development of Maxis’s financial data (RM million) – 2012 – 2024
Table 19 – Change in the number of Maxis’s consumer mobile subscribers (million) – 2012 – 2024
Table 20 – Change in Maxis’s mobile ARPU (RM / month) – 2012 – 2024
Table 21 – Change in the number of Maxis’s wireless broadband subscribers – 2012 – 2024
Table 22 – Change in the number of Digi’s mobile subscribers (million) – 2012 – 2022
Table 23 – Development of Digi’s financial data (RM million) – 2012 – 2022
Table 24 – Development of Digi’s mobile revenue by contract/prepaid subscribers (RM million) – 2019 – 2022
Table 25 – Change in Digi’s mobile ARPU (RM/month) – 2012 – 2022
Table 26 – Development of Celcom’s financial data (RM million) – 2012 – 2022
Table 27 – Change in the number of Celcom’s mobile subscribers (million) – 2012 – 2022
Table 28 – Development of Celcom’s mobile ARPU (RM / month) – 2012 – 2022
Table 29 – Increase in Celcom’s smartphone penetration – 2014 – 2021
Table 30 – Development of Celcom’s LTE/LTE-A population coverage – 2014 – 2022
Table 31 – Growth in Celcom’s mobile data use – 2015 – 2022
Table 32 – Development of CelcomDigi’s service revenue by type (old style, RM million) – 2022 – 2023
Table 33 – Development of CelcomDigi’s consumer service revenue by type (RM million) – 2023 – 2024
Table 34 – Development of CelcomDigi’s business service revenue by type (RM million) – 2023 – 2024
Table 35 – Development of CelcomDigi’s financial data (RM million) – 2022 – 2024
Table 36 – Development of CelcomDigi’s mobile subscribers – 2022 – 2024
Table 37 – Growth in the number of fixed broadband subscribers – 2012 – 2027
Table 38 – Change in the number of fixed broadband connections by data rate – 2019 – 2022
Table 39 – Change in the number of Telekom Malaysia’s fixed broadband subscribers (million) – 2012 – 2024
Table 40 – Change in Telekom Malaysia’s Unifi revenue – 2019 – 2024
Table 41 – Decline in the number of DSL broadband subscribers – 2014 – 2023
Table 42 – Increase in the number of fibre broadband subscribers – 2010 – 2023
Table 43 – Increase in the number of CelcomDigi’s fibre broadband subscribers – 2022 – 2024
Table 44 – Increase in the number of Maxis’s fibre broadband subscribers – 2018 – 2024
Table 45 – Increase in Maxis’s fixed broadband revenue – 2021 – 2024
Table 46 – Change in the number of satellite fibre broadband subscribers – 2019 – 2023
Table 47 – Development of Telekom Malaysia’s financial data (RM billion) – 2012 – 2024
Table 48 – Development of Telekom Malaysia’s revenue by service (RM million) – 2016 – 2024
Table 49 – Development of Telekom Malaysia’s revenue by business unit (RM million) – 2020 – 2024
Table 50 – Change in Telekom Malaysia’s ARPU by service (RM/month) – 2012 – 2024
Table 51 – Development of Telekom Malaysia’s capex – 2012 – 2024
Table 52 – Change in the number of fixed lines in service and teledensity – 2012 – 2027
Table 53 – Development of MyIX domestic traffic – 2017 – 2023
Table 54 – Increase in international internet bandwidth capacity – 2013 – 2023
Table 55 – Increase in e-commerce market value – 2017 – 2022
Table 56 – Increase in e-commerce revenue – 2020 – 2023
Table 57 – Historic - fixed lines in service and penetration – 1995 – 2006
Table 58 – Historic - mobile subscribers, penetration rate, and annual growth – 1996 – 2011
Table 59 – Historic - DSL subscribers – 2001 – 2011
Table 60 – Historic - Internet users and Penetration – 1996 – 2011
Table 61 – Historic - Postpaid and prepaid mobile subscribers and market share – 2002 – 2011
Table 62 – Historic - Celcom mobile subscribers, prepaid and postpaid – 2005 – 2011
Table 63 – Historic - Development of Celcom’s mobile ARPU (RM/month) – 2008 – 2011
Table 64 – Historic - Maxis mobile ARPU (RM/month) – 2007 – 2011
Table 65 – Historic - Telekom Malaysia capex – 2007 – 2011
Table 66 – Historic - International internet bandwidth – 1999 – 2011
Table 67 – Historic - Telekom Malaysia - Fixed Broadband Subscribers – 2003 – 2011
Table 68 – Historic - Digi mobile subscribers (million) – 2006 – 2011
Table 69 – Historic - Percentage of households with internet access/computer – 2007 – 2011
Table 70 – Historic - Telekom Malaysia’s fixed-line subscribers – 2007 – 2017

List of Charts

Chart 1 – Asia Telecoms Maturity Index – Market Leaders
Chart 2 – Asia Telecoms Maturity Index – Market Challengers
Chart 3 – Asia Telecoms Maturity Index – Market Emergents
Chart 4 – Asia – Telecoms Maturity Index vs GDP per capita
Chart 5 – Asia – Mobile subscriber penetration vs mobile broadband penetration
Chart 6 – South East Asia – Mobile subscriber penetration vs mobile broadband penetration
Chart 7 – South East Asia – Fixed and mobile broadband penetration
Chart 8 – Change in the share of telecom sector revenue by key operator– 2019 – 2023
Chart 9 – Development of telecom sector capex by sector – 2018 – 2023
Chart 10 – Change in the number of network licences by type – 2014 – 2023
Chart 11 – Change in the number of mobile number portings – 2012 – 2023
Chart 12 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Chart 13 – Change in the number of contract and prepaid mobile subscribers – 2012 – 2024
Chart 14 – Decline in SMS traffic – 2012 – 2023
Chart 15 – Change in average mobile ARPU among MNOs – 2017 – 2023
Chart 16 – Growth in the number of mobile broadband subscribers and penetration – 2012 – 2027
Chart 17 – Change in the number of mobile broadband subscribers by platform – 2020 – 2024
Chart 18 – Change in the market share of mobile subscribers by MNO – 2012 – 2023
Chart 19 – Development of Maxis’s financial data – 2012 – 2024
Chart 20 – Change in the number of Maxis’s mobile subscribers – 2012 – 2024
Chart 21 – Change in Maxis’s mobile ARPU – 2012 – 2024
Chart 22 – Change in the number of Maxis’s wireless broadband subscribers – 2012 – 2024
Chart 23 – Change in the number of Digi’s mobile subscribers – 2012 – 2022
Chart 24 – Development of Digi’s financial data – 2012 – 2022
Chart 25 – Development of Digi’s mobile revenue by contract/prepaid subscribers – 2019 – 2022
Chart 26 – Change in Digi’s mobile ARPU – 2012 – 2022
Chart 27 – Development of Celcom’s financial data – 2012 – 2022
Chart 28 – Change in the number of Celcom’s mobile subscribers – 2012 – 2022
Chart 29 – Development of Celcom’s mobile ARPU – 2012 – 2022
Chart 30 – Growth in the number of fixed broadband subscribers – 2012 – 2027
Chart 31 – Change in the number of fixed broadband connections by data rate – 2019 – 2024
Chart 32 – Change in the number of Telekom Malaysia’s fixed broadband subscribers – 2012 – 2024
Chart 33 – Decline in the number of DSL subscribers – 2012 – 2023
Chart 34 – Increase in the number of fibre broadband subscribers – 2010 – 2024
Chart 35 – Increase in the number of Maxis’s fibre broadband subscribers – 2018 – 2024
Chart 36 – Development of Telekom Malaysia’s financial data – 2012 – 2024
Chart 37 – Development of Telekom Malaysia’s revenue by service – 2016 – 2024
Chart 38 – Development of Telekom Malaysia’s revenue by business unit) – 2020 – 2024
Chart 39 – Change in Telekom Malaysia’s ARPU by service – 2012 – 2024
Chart 40 – Development of Telekom Malaysia’s capex – 2012 – 2024
Chart 41 – Change in the number of fixed lines in service and teledensity – 2012 – 2027

List of Exhibits

Exhibit 1 – Map of Telecom Maturity Index global ranking among countries in Asia
Exhibit 2 – Generalised Market Characteristics by Market Segment
Exhibit 3 – Asia – Market Leaders and market developments
Exhibit 4 – Asia – Market Challengers and market developments
Exhibit 5 – Asia – Market Emergents and market developments
Exhibit 6 – Key international submarine cable systems with landing points in Malaysia

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Malaysia Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Purchase this Report

U Mobile secures right to build Malaysia’s second 5G network

Key Developments

Key companies mentioned in this report:

Key statistics

Regional Asia market comparison

Country overview

Telecommunications market

Regulatory environment

Mobile market

Fixed-line broadband market

Fixed network market

Telecommunications infrastructure

Digital economy

Appendix – Historic data

Glossary of abbreviations

Related reports

Purchase this Report

Share this Report

TMT Intelligence

A platform to scale your intelligence tasks

Research Methodology

Hot Topics

News & Views