Malaysia Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Publication Date: December 2023

Report Pages: 157

Analyst: Henry Lancaster

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Summary
Table Of Contents

Malaysia’s mobile market sees consolidation with the merger of Digi and Celcom

As part of a diverse range of initiatives designed to move the country from developing to developed status by 2025, 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.

The incumbent telco Telekom Malaysia retains an almost monopolistic hold on the fixed-line market, as well as a significant lead in fixed broadband. However, there is growing market competition as more fibre cable networks are being deployed around the country on top of 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 keep data use up but 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 been successful in moving 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 has more than 20.3 million subscribers and will be better placed to provide cheaper services to customers through improved economies of scale.

The government elected to create a single 5G network managed by a single operator, DNB, providing wholesale access to the MNOs. All MNOs except Maxis had signed access deals by early 2023. DNB covered 50% of populated areas by the end of 2022 and expected to cover 80% by 2024.

There was some reticence among MNOs to sign access deals with DNB, given that the latter’s monopoly limited opportunities for the MNOs to differentiate their 5G services, or negotiate wholesale pricing. Following calls by the MNOs for a dual wholesale network model, the newly installed government in December 2022 announced that it would consider allowing a second 5G network to be built, with access to be made available from January 2024.

Key Developments

ACE cable consortium members contract Ciena to increase the cable’s capacity by about 193%.
Government considers allowing a second 5G network to be built, to compete with DNB which currently retains a monopoly on access to 5G infrastructure.
Telecom Malaysia embarks on an internal reorganisation under which its telecom business will be transferred to a single operating unit, TM Technology.
SEA-H2X cable system connecting to Malaysia at Kuching to be lit in 2024.
Digi and Celcom complete merger of their Malaysian mobile operations.
Malaysia’s 3G networks are shut down, with the spectrum reallocated to LTE use.
Report update includes the regulator's telecom sector data to December 2022, telcos' operating and financial data to Q4 2022, updated 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)

Mobile network developments

Mobile Number Portability (MNP)
Spectrum

Mobile market

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
Fixed broadband service providers

Telekom Malaysia
Time dotCom

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

Wi-Fi
WiMAX

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
Satellite communications
Submarine networks
Submarine system developments

Smart infrastructure

Internet of Things (IoT)
Smart Cities

Digital economy

e-economy

Appendix – Historic data
Glossary of abbreviations
Related reports

List of Tables

Table 1 – Top Level Country Statistics and Telco Authorities – Malaysia – 2023 (e)
Table 2 – Change in the value of the telecom sector – 2018 – 2021
Table 3 – Development of telecom sector revenue – 2018 – 2021
Table 4 – Change in the share of telecom sector revenue by key operator– 2019 – 2021
Table 5 – Development of telecom sector capex by sector (RMB billion) – 2018 – 2021
Table 6 – Change in the number of mobile number portings – 2012 – 2020
Table 7 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Table 8 – Change in the number of contract and prepaid mobile subscribers and market share – 2012 – 2022
Table 9 – Change in the market share of mobile subscribers by platform – 2018 – 2022
Table 10 – Decline in SMS traffic – 2012 – 2022
Table 11 – Change in average mobile ARPU among MNOs (RMB / month) – 2017 – 2022
Table 12 – Change in the number of Digi’s LTE subscribers – 2015 – 2020
Table 14 – Change in the market share of mobile subscribers by MNO – 2012 – 2021
Table 15 – Development of Maxis’s financial data (RM million) – 2012 – 2022
Table 16 – Change in the number of Maxis’s mobile subscribers (million) – 2012 – 2022
Table 17 – Change in Maxis’s mobile ARPU (RM / month) – 2012 – 2022
Table 18 – Change in the number of Maxis’s wireless broadband subscribers – 2012 – 2022
Table 19 – Change in the number of Digi’s mobile subscribers (million) – 2012 – 2022
Table 20 – Development of Digi’s financial data (RM million) – 2012 – 2022
Table 21 – Development of Digi’s mobile revenue by contract/prepaid subscribers (RM million) – 2019 – 2022
Table 22 – Change in Digi’s mobile ARPU (RM / month) – 2012 – 2022
Table 23 – Development of Celcom’s financial data (RM million) – 2012 – 2022
Table 24 – Change in the number of Celcom’s mobile subscribers (million) – 2012 – 2022
Table 25 – Development of Celcom’s mobile ARPU (RM / month) – 2012 – 2022
Table 26 – Increase in Celcom’s smartphone penetration – 2014 – 2021
Table 27 – Development of Celcom’s LTE/LTE-A population coverage – 2014 – 2022
Table 28 – Growth in Celcom’s mobile data use – 2015 – 2022
Table 29 – Development of CelcomDigi’s service revenue by type (RM million) – 2021 – 2022
Table 30 – Development of CelcomDigi’s financial data (RM million) – 2021 – 2022
Table 31 – Growth in the number of fixed broadband subscribers – 2012 – 2027
Table 32 – Change in the number of fixed broadband connections by data rate – 2019 – 2022
Table 33 – Decline in the number of DSL subscribers – 2012 – 2021
Table 34 – Change in the number of Telekom Malaysia’s fixed broadband subscribers (million) – 2012 – 2022
Table 35 – Change in Telekom Malaysia’s Unifi revenue – 2019 – 2022
Table 36 – Change in the number of fibre broadband subscribers – 2010 – 2021
Table 37 – Increase in the number of Maxis’s fibre broadband subscribers – 2018 – 2022
Table 38 – Development of Telekom Malaysia’s financial data (RM billion) – 2012 – 2022
Table 39 – Development of Telekom Malaysia’s revenue by service (RM million) – 2016 – 2022
Table 40 – Development of Telekom Malaysia’s revenue by business unit (RM million) – 2020 – 2022
Table 41 – Change in Telekom Malaysia’s ARPU by service (RM / month) – 2012 – 2022
Table 42 – Development of Telekom Malaysia’s capex – 2012 – 2022
Table 43 – Change in the number of fixed lines in service and teledensity – 2012 – 2027
Table 44 – Development of domestic IXP traffic – 2017 – 2021
Table 45 – Increase in international internet bandwidth – 2012 – 2021
Table 46 – Increase in e-commerce transactions and market value – 2017 – 2021
Table 47 – Historic - fixed lines in service and penetration – 1995 – 2006
Table 48 – Historic - mobile subscribers, penetration rate, and annual growth – 1996 – 2011
Table 49 – Historic - DSL subscribers – 2001 – 2011
Table 50 – Historic - Internet users and Penetration – 1996 – 2011
Table 51 – Historic - Postpaid and prepaid mobile subscribers and market share – 2002 – 2011
Table 52 – Historic - Celcom mobile subscribers, prepaid and postpaid – 2005 – 2011
Table 53 – Historic - Development of Celcom’s mobile ARPU (RM/month) – 2008 – 2011
Table 54 – Historic - Maxis mobile ARPU (RM/month) – 2007 – 2011
Table 55 – Historic - Telekom Malaysia capex – 2007 – 2011
Table 56 – Historic - International internet bandwidth – 1999 – 2011
Table 57 – Historic - Telekom Malaysia - Fixed Broadband Subscribers – 2003 – 2011
Table 58 – Historic - Digi mobile subscribers (million) – 2006 – 2011
Table 59 – Historic - Percentage of households with internet access/computer – 2007 – 2011
Table 60 – 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 – 2021
Chart 9 – Development of telecom sector capex by sector – 2018 – 2021
Chart 10 – Change in the number of mobile number portings – 2012 – 2020
Chart 11 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Chart 12 – Change in the number of contract and prepaid mobile subscribers – 2012 – 2022
Chart 13 – Change in the market share of mobile subscribers by platform – 2018 – 2022
Chart 14 – Decline in SMS traffic – 2012 – 2022
Chart 15 – Change in average mobile ARPU among MNOs (RMB / month) – 2017 – 2022
Chart 16 – Growth in the number of mobile broadband subscribers and penetration – 2012 – 2027
Chart 17 – Change in the market share of mobile subscribers by MNO – 2012 – 2021
Chart 18 – Development of Maxis’s financial data – 2012 – 2021
Chart 19 – Change in the number of Maxis’s mobile subscribers – 2012 – 2022
Chart 20 – Change in Maxis’s mobile ARPU – 2012 – 2022
Chart 21 – Change in the number of Maxis’s wireless broadband subscribers – 2012 – 2022
Chart 22 – Change in the number of Digi’s mobile subscribers – 2012 – 2022
Chart 23 – Development of Digi’s financial data – 2012 – 2022
Chart 24 – Development of Digi’s mobile revenue by contract/prepaid subscribers (RM million) – 2019 – 2022
Chart 25 – Change in Digi’s mobile ARPU – 2012 – 2022
Chart 26 – Development of Celcom’s financial data – 2012 – 2022
Chart 27 – Change in the number of Celcom’s mobile subscribers – 2012 – 2022
Chart 28 – Development of Celcom’s mobile ARPU – 2012 – 2022
Chart 29 – Growth in the number of fixed broadband subscribers – 2012 – 2027
Chart 30 – Change in the number of fixed broadband connections by data rate – 2019 – 2021
Chart 31 – Decline in the number of DSL subscribers – 2012 – 2021
Chart 32 – Change in the number of Telekom Malaysia’s fixed broadband subscribers – 2012 – 2022
Chart 33 – Change in the number of fibre broadband subscribers – 2010 – 2021
Chart 34 – Increase in the number of Maxis’s fibre broadband subscribers – 2018 – 2022
Chart 35 – Development of Telekom Malaysia’s financial data – 2012 – 2022
Chart 36 – Development of Telekom Malaysia’s revenue by service (RM million) – 2016 – 2022
Chart 37 – Development of Telekom Malaysia’s revenue by business unit (RM million) – 2020 – 2022
Chart 38 – Change in Telekom Malaysia’s ARPU by service – 2012 – 2022
Chart 39 – Development of Telekom Malaysia’s capex – 2012 – 2022
Chart 40 – 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 – MVNOs and host networks
Exhibit 7 – 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

Malaysia’s mobile market sees consolidation with the merger of Digi and Celcom

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