Malaysia Telecoms Industry Report – 2020-2025

AUD1,818.00

This report provides analyses of revenue and market forecasts as well as statistics of the Malaysian telecoms industry including market sizing, 5-year forecasts, market insights, key telecom trends, 5G and also features the following:

  • Overall Telecommunications Market by Major Operators
  • Telco Operators Profile, Revenue and EBITDA Mix
  • Mobile Subscribers & Revenue Market Overview and Forecasts
  • Spectrum Holdings
  • IoT Market Overview
  • Broadband Subscribers & Revenue Market Overview and Forecasts
  • National Broadband Network Detailed Market Overview and Forecasts
  • Thematics / Opportunities relating to 5G, M&A and e-Commerce
  • Telecoms Infrastructure Review
  • Telco Transaction Database

About this report:
Pages: 58
Author: Landry Fevre
Publication Date: February 2020

Description

WHY YOU SHOULD BUY THE MALAYSIA TELECOMS INDUSTRY REPORT:

  • Benefit from the latest market opportunities
  • Understand the threats to your operations and investments and protect your company against future risks
  • Gain insight on emerging trends that could support, strengthen or disrupt your activities in the market
  • Get a full view of the competitive landscape to assess your market position.
  • Forecasts as a key input for successful budgeting and strategic business planning in the telecoms market
  • Target business opportunities and risks in the telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Operators Profiles

The Malaysia Telecommunications Industry Report, 2020-2025 includes a comprehensive review of the Malaysia market dynamics, market sizing, market forecasts, analysis, insights and key trends.

EXECUTIVE SUMMARY

Malaysia Telecoms Industry Report at a Glance
The Malaysian telecommunications market is a thriving mobile market with four large network operators, an incumbent fixed-line provider with near-monopoly and the overall market underpinned by strong economic fundamentals, albeit some political uncertainties.

Idem Est Research forecasts that mobile subscriptions will continue to grow in the 2019-25 period and fixed broadband subscribers will also continue to grow and increase its household penetration over the same period. The ratio of the telecommunications sector revenue to GDP is declining from a peak in 2010, sliding down every year since then.

Mobile subscribers numbers and revenue are growing strongly and the back of population growth and the market shift to postpaid.

Idem Est Research expects the overall telecoms market to grow through to 2025 after a marked slow down in 2017 and 2018 due to legacy voice revenue pressure partially offset by mobile data growth.

Capex Investments
The Capex to GDP ratio remained relatively stable between 2014 and 2018 but has been sliding in 2019 and is expected to remain at the same level through to 2025. Telekom Malaysia nearly halved its Capex in 2019 while Maxis, Celcom and Digi have more consistent investment profiles.

Mobile Subscribers and Revenue
Over the last five years, the market shifted to postpaid as subscribers move to with increased data allowances. Overall, the number of prepaid subscribers decreased significantly. Mobile network operators are facing competitive pressure with the market shifting to legacy prepaid voice and SMS to data-centric usage increasingly becoming the sole offering differentiator.

According to our benchmark study of mobile data pricing, India has the lowest rate per GB at just a few cents per GB, while Australia and China had the biggest cost reduction per GB mostly due to increased data allowance in plans while Singapore remains expensive. Malaysia has the highest monthly download per user while pricing per GB decreased by half for Malaysian users.

Broadband Subscribers – FTTH Push and Fixed Wireless
The National Fiberisation and Connectivity Plan (NFCP) is a Malaysian government program of building full-fibre networks to homes, businesses and government buildings covering 98% of the population by the end of 2023 with minimum speeds of 30Mbps and 500Mbps in urban areas and gigabit speeds in industrial areas. It is a public-private partnership of the government with four companies with a total government investment of RM11 billion.

The broadband market is now experiencing low growth mostly driven by low competition with Telekom Malaysia remaining the dominant fixed broadband incumbent.

Households growth and new investments by Maxis, TIME dotCom and YTL will drive up the fixed-broadband subscribers.

ThematicsTelecoms Infrastructure / 5G / M&A / e-Commerce
Infrastructure funds, pension funds and government funds are assigning high valuation multiples to telecommunications infrastructure assets such as mobile towers, data centres, submarine cable and fibre infrastructure.

Investment funds are assigning high valuation multiples to telecommunications infrastructure assets such as mobile towers, data centres, submarine cable and fibre infrastructure. This report outlines some real market examples of how investors view and value these investments with real industry examples and EV/EBITDA comparatives and benchmarks.

Idem Est Research predicts the next wave of transactions is likely to continue being about “scale” among small ISPs and largely about infrastructure for Telekom Malaysia, Maxis, Axiata and Digi.

In most markets, telcos operators increasingly find inorganic market growth very challenging, provided the limited scope for M&A due to regulatory barriers.

The arrival of 4G moved the Internet off our desktops into our palms and pockets, 5G could transform the network from something we carry around to something taking us around either virtually (augmented reality or virtual reality) or in reality (autonomous vehicles), the 5G outcome and benefits beyond fast connectivity remain largely unknown in terms of business models, investments required and timeline.

KEY COMPANIES MENTIONED IN THIS REPORT:

Altel, Astro, Axiata, Celcom, Digi, edotco, Maxis, REDtone, Sacofa, Telekom Malaysia, TIME dotCom, Usaha Tegas, U Mobile, ViewQuest and YTL.

 

Malaysia Telecoms Industry Report – Table of Contents

1       Key Statistics
1.1        Malaysia Population
1.2        Malaysian Households
1.3        Malaysia’s GDP

2       Overall Telecommunications Market, 2014–2025
2.1        Market Overview
2.2        Historical Telecommunications Market Revenue, 2014-2019
2.3        Overall Telecommunications Market Forecast, 2018-2025
2.4        Telecommunications Market Capital Expenditure, 2014-2025
2.4.1      Historical Telecommunications Capex Spend, 2014-2019
2.4.2      Capex to Revenue Benchmark
2.4.3      Telecommunications Capex Spend Forecast, 2018-2025

3       Telecommunications Operators Profile
3.1        Telekom Malaysia Profile
3.1.1      Telekom Malaysia Revenue and EBITDA Mix
3.2        Maxis Profile
3.2.1      Maxis Revenue and EBITDA Mix
3.1        Celcom Profile
3.1.1      Celcom Revenue and EBITDA Mix
3.2        DiGi Profile
3.2.1      Digi Revenue and EBITDA Mix
3.3        TIMe dotCOM Profile
3.3.1      TIME dotCom Revenue and EBITDA Mix
3.4        Other Players Profile
3.4.1      U Mobile
3.4.2      Other Telecoms Operators

4       Mobile market
4.1        Mobile Subscribers Historical and Forecast, 2014-2025
4.1.1      Mobile Subscribers Historical, 2014-2019
4.1.2      Mobile Subscribers Market Share, 2014-2019
4.1.3      Malaysia Smartphone Share, 2019
4.1.4      Malaysia Mobile Subscribers Forecast, 2019-2025
4.2        Mobile Revenue Historical and Forecast, 2014-2025
4.2.1      Historical Mobile Revenue, 2014-2019
4.2.1      Mobile Revenue Market Share, 2014-2019
4.2.2      Mobile Revenue Forecast, 2018–2025
4.2.3      Mobile Subscribers ARPU, 2014-2019
4.3        Spectrum Holdings
4.3.1      Existing Spectrum Holdings and 5G Trials
4.3.2      Upcoming 5G Auctions
4.3.3      Mobile Frequencies Portfolios Analysis
4.4        Mobile Download Data and Pricing Trends
4.5        Mobile Speed Tests
4.5.1      Ookla Mobile Speed Tests
4.6        Internet of Things (IoT)

5       Broadband Market
5.1        Fixed Broadband Subscribers Historical, 2014-2019
5.2        Fixed Broadband Subscribers Forecast, 2018-2025

6       Telecommunications Infrastructure Investments
6.1        Fixed Infrastructure
6.1.1      Government Plans – HSBB and NFCP
6.1.2      Submarine Cables
6.2        Mobile Tower Infrastructure Landscape
6.2.1      Getting Ready for 5G
6.3        Telco Infrastructure Comparative

7       Thematics / Opportunities
7.1        Going for Scale
7.2        Going for Scope
7.3        New Telecoms Operating Model
7.3.1      The Attraction of Infrastructure Multiples
7.4        5G versus Fixed
7.4.1      5G Overview
7.4.2      Fixed Broadband Networks Doing the Heavy Lifting Long Term

8       Telco Transaction Database

9       Methodology

10     Copyright Notice

Malaysia Telecoms Industry Report – List of Figures

Figure 1 – Telco sector revenue as % of GDP in Malaysia
Figure 2 – Telecommunications Market Revenue, 2018
Figure 3 – Telecommunications Market EBITDA, 2018
Figure 4 – Telecommunications Revenue & EBITDA Share Estimates, 2019e
Figure 5 – Capex to Revenue Benchmark, 2014-2019e
Figure 6 – Telecommunications Capital & Operational Expenditure Spend, 2000-2025
Figure 7 – Telekom Malaysia Service Revenue Mix, FY14-FY18
Figure 8 – Telekom Malaysia Historical Revenue Mix, 2014 – 2019e (RM m)
Figure 9 – Maxis Revenue Mix, 2016-2019
Figure 10 – Maxis Historical Revenue Mix, 2014 – 2019
Figure 11 – Celcom Revenue and EBITDA (RM m), 2014-2019e
Figure 12 – Digi Service Revenue Mix, 2014-2019
Figure 13 – Digi Historical Revenue Mix, FY14 – FY19 (RM m)
Figure 14 – TIME Service Revenue Mix, 2014-2019
Figure 15 – Digi Historical Revenue Mix, FY14 – FY19 (RM m)
Figure 16 – Mobile Subscribers Share Comparison, 2014-2019
Figure 17 – Mobile Subscribers Forecast, 2014-2025
Figure 18 – Mobile Revenue Share Comparison, 2014-2019
Figure 19 – Mobile Revenue Forecast, 2018-2025
Figure 20 – Mobile Subscribers ARPU (RM), 2014-2019
Figure 21 –Mobile Handsets Monthly Download Data, 2017-2019
Figure 22 – Data Pricing Trends in Asia-Pacific (US$ per GB per month), 2017-2019
Figure 23 – Ookla Mobile Speedtest Ranking Comparison
Figure 24 – Spectrum available for IoT in Malaysia
Figure 25 – Broadband Subscribers Share Comparison, 2014-2019
Figure 26 – Malaysia Broadband Services by Speed Tiers
Figure 27 – Broadband Subscribers Forecast, 2018-2025
Figure 28 – Estimated Tower Market Share, 2019
Figure 29 – Telecoms Providers EV/EBITDA Ranges
Figure 30 – 5G Network Slices Structure
Figure 31 – Australia – Volume of Data Downloaded (Terabytes/month), 2010-2019

Malaysia Telecoms Industry Report – List of Tables

Table 1 – Malaysia – Key Statistics
Table 2 – Telecommunications Market Revenue by Operators
Table 3 – Total Telecommunications Market Revenue, 2019-2025
Table 4 – Historical Telecommunications Capex Spend, 2014-2019
Table 5 – Historical Telekom Malaysia Revenue, EBITDA & Capex, FY14-FY19e
Table 6 – Historical Maxis Revenue and EBITDA Mix, 2014-2019e
Table 7 – Historical Celcom Revenue and EBITDA Mix, 2014-2019e
Table 8 – Historical Digi Revenue, EBITDA & Capex, 2014-2019
Table 9 – Historical TIME dotCom Revenue, EBITDA & Capex, 2014-2019
Table 10 – Historical Mobile Subscribers, 2014-2019e
Table 11 – Malaysia Mobile Subscribers Forecast, 2018-2025
Table 12 – Historical Mobile Service Revenue, 2014-2019e
Table 13 – Historical ‘Big 3’ Blended Mobile ARPU, 2014-2019
Table 14 – Mobile Frequencies by Operators and by Band (Mhz)
Table 15 – Historical Broadband Subscribers, 2014-2019
Table 16 – Historical Broadband Monthly ARPU, 2014-2019
Table 17 – Malaysia Brodband Subscribers Forecast, 2018-2025
Table 18 – International Submarine Cable Systems with Landing stations in Malaysia
Table 19 – Telekom Malaysia, Maxis, Digi, Axiata and TIME dotcom Telecoms Infrastructure Landscape
Table 20 – Technology Specifications (ADSL, FTTN, Fibre, 4G/LTE, 4G/LTE-A and 5G)
Table 21 – Australia – Volume of Data Downloaded Mix (Terabytes/month), 2010-2019
Table 22 – Telco Transaction Database, 2001-2019

Other Idem Est Research Telecoms Country Reports

Australia, China, India, Indonesia, JapanNew ZealandPhilippines, Malaysia, South Korea, TaiwanThailand, Vietnam

Telecoms Country Report

Additional information

Brand

Idem Est Research

Select your currency
EUREuro