Malaysia Telecoms Industry Report – 2021-2026

USD1,450.42

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
  • Digital Infrastructure (Fibre, Telecom Towers, Data Centres, Submarine Cables)
  • Telecom Tower Market Analysis and Forecast
  • Thematics / Opportunities relating to 5G, M&A and e-Commerce
  • Telco Transaction Database

About this report:
Pages: 81
Author: Landry Fevre
Publication Date: July 2021
License: Single User PDF

Description

WHY YOU SHOULD BUY THE MALAYSIA TELECOMS INDUSTRY REPORT:

  • Benefit from the latest market opportunities
  • Target business opportunities and risks in the telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments
  • 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
  • Assess the activities, strategy and market position of your competitors, partners and clients

The Malaysia Telecommunications Industry Report, 2021-2026 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 2021-26 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 forecasts 15.5m 5G subscribers by 2026.

Idem Est Research expects the overall telecoms revenue to grow through to 2026 after a marked slow down in 2019 and 2020 due to legacy voice revenue pressure partially offset by mobile data growth in the addition  to the COVID-19 pandemic impact.

Capex Investments
The Capex to GDP ratio remained relatively stable between 2014 and 2018 but has been sliding in 2019 and growing again from 2020 onwards through to 2026. 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 Jendela initiative 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 2025 as well as providing 100% 4G coverage with minimum speeds of 100Mbps.

The broadband market is now experiencing strong growth mostly driven by competition by TIME, Celcom, Maxis and DiGi with Telekom Malaysia still the dominant fixed broadband incumbent.

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

Telecom Tower Infrastructure getting a boost from the Jendela initiative
The Malasian telecom towers is reaching an estimated 33,700 towers in 2020. The largest tower company (towerco) is edotco, the infrastructure arm of Axiata also the owner of Celcom, one of the original Malaysian mobile network operators. edotco grew out of the original carve-out of from Celcom.

The remaining share of the towerco market is relatively fragmented with 42% still owned by mobile operators, Maxis, DiGi, Celcom, U Mobile and Telekom Malaysia. Over 16% of the telecom towers are controlled by the 13 State-backed telecommunications infrastructure companies controlling a large swath of regional coverage, leaving only 4% for private independent towercos.

Mobile operators must contend with the current de-facto exclusivity arrangements for some state-backed companies controlling infrastructure rollout and permits at the state level. In general, the industry structure is quite fragmented and we are expecting MNO tower divestments and towercos consolidation in the future, which will improve industry economics and improve the speed of implementation.

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:

Allo, Altel, Astro, Axiata, Celcom, Digi, edotco, Maxis, OCK, 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        Malasyia’s Economy
1.3        Malaysia’s GDP

2       COVID-19 Impact

3       Overall Telecommunications Market, 2014–2026
3.1        Market Overview
3.2        Historical Telecommunications Market Revenue, 2014-2020
3.3        Overall Telecommunications Market Forecast, 2019-2026
3.4        Telecommunications Market Capital Expenditure, 2014-2026
3.4.1      Historical Telecommunications Capex Spend, 2014-2020
3.4.2      Capex to Revenue Benchmark
3.4.3      Telecommunications Capex Spend Forecast, 2019-2026

4       Telecommunications Operators Profile
4.1        Telekom Malaysia Profile
4.1.1      Telekom Malaysia Revenue and EBITDA Mix
4.2        Maxis Profile
4.2.1      Maxis Revenue and EBITDA Mix
4.1        Celcom-Digi Profile
4.1.1      Celcom Profile
4.1.2      DiGi Profile
4.1        TIMe dotCOM Profile
4.1.1      TIME dotCom Revenue and EBITDA Mix
4.2        U mobile Profile
4.2.1      Estimated U Mobile Revenue and EBITDA Mix
4.3        Other Players Profile
4.3.1      Other Telecoms Operators

5       Mobile market
5.1        Mobile Subscribers Historical and Forecast, 2014-2026
5.1.1      Mobile Subscribers Historical, 2014-2020
5.1.2      Mobile Subscribers Market Share, 2014-2020
5.1.3      Malaysia Smartphone Share, 2021
5.1.4      Malaysia Mobile Subscribers Forecast, 2021-2026
5.1.5      Malaysia Mobile Subscribers by Generation (2G, 3G, 4G & 5G) Forecast, 2018-2026
5.2        Mobile Revenue Historical and Forecast, 2014-2026
5.2.1      Historical Mobile Revenue, 2014-2020
5.2.1      Mobile Revenue Market Share, 2014-2020
5.2.2      Mobile Revenue Forecast, 2019–2026
5.2.3      Mobile Subscribers ARPU, 2014-2020
5.3        Spectrum Holdings
5.3.1      Existing Spectrum Holdings and 5G
5.3.2      Upcoming 5G Rollout
5.3.3      Mobile Frequencies Portfolios Analysis
5.3.1      Spectrum Depth Benchmark by Country
5.4        Mobile Download Data and Pricing Trends
5.5        Mobile Speed Tests
5.5.1      Ookla Mobile Speed Tests
5.6        Internet of Things (IoT)

6       Broadband Market
6.1        Fixed Broadband Subscribers Historical, 2014-2020
6.2        Fixed Broadband Subscribers Forecast, 2019-2026

7       Fixed Telecommunications Infrastructure Investments
7.1        Government Plans – HSBB and NFCP (2010-2020)
7.2        Government Plans – Jendela (2020-2025)
7.3        Submarine Cables

8       Malaysia Telecom Towers Infrastructure Landscape
8.1        Malaysia Telecom Towers Market Analysis, 2020
8.1.1      Malaysia Telecom Towers Market Overview
8.1.2      Malaysia Telecom Towers Background
8.2        Malaysia Telecom Towers Market Competitive Landscape Comparison
8.2.1      Malaysia Telecom Towers Market Competitive Landscape Comparison
8.3        Malaysia Telecom Towers & Rooftops Market Forecast
8.3.1      Malaysia Telecom Towers Forecast, 2020-2025
8.3.2      Regulatory Considerations
8.4        edotco Profile
8.4.1      edotco Towers Key Performance Indicators
8.5        Sacofa Profile
8.5.1      Sacofa Key Performance Indicators
8.6        OCK Profile
8.6.1      OCK Key Performance Indicators
8.7        State-Backed TowerCos Profile
8.7.1      State-Backed Towercos Towers Key Performance Indicators
8.8        Telco Infrastructure Comparative

9       Thematics / Opportunities
9.1        Going for Scale
9.2        Going for Scope
9.3        New Telco Operating Model
9.3.1      The Attraction of Infrastructure Multiples
9.4        5G Developments
9.4.1      5G Overview
9.4.2      5G – Relative Capex Investments and Frequency Range
9.4.3      5G OpenRAN
9.4.4      Beyond 5G and Towards 6G

10     Telco Transaction Database

11     Methodology

12     Copyright Notice

Malaysia Telecoms Industry Report – List of Figures

Figure 1 – Telco sector revenue as % of GDP in Malaysia
Figure 2 –Revenue Profile Historical Mix (MYR m), 2014 – 2020
Figure 3 –EBITDA Profile Historical Mix (MYR m), 2014 – 2020
Figure 4 – Telecommunications Market Revenue pool, 2020
Figure 5 – Telecommunications Market EBITDA pool, 2020
Figure 6 – Telecommunications Revenue & EBITDA Share Estimates, 2020
Figure 7 – Total Telecoms Market Revenue and Growth Rate (MYR bn), 2018-2025
Figure 8 – Capex to Revenue Benchmark, 2014-2020
Figure 9 – Telecommunications Capital Expenditure Spend, 2000-2026
Figure 10 – Telekom Malaysia Service Revenue Mix, 2014-2020
Figure 11 – Telekom Malaysia Historical Revenue Mix, 2014 – 2020 (MYR m)
Figure 12 – Maxis Revenue Mix, 2014-2020
Figure 13 – Maxis Historical Revenue Mix (MYR m), 2014 – 2020
Figure 14 – Celcom Revenue and EBITDA (MYR m), 2014-2020
Figure 15 – Digi Service Revenue Mix, 2014-2020
Figure 16 – Digi Historical Revenue Mix, 2014 – 2019 (MYR m)
Figure 17 – TIME dotCom Historical Revenue Mix, 2014 – 2020 (MYR m)
Figure 18 – Estimated U Mobile Historical Revenue Mix, 2014 – 2020 (MYR m)
Figure 19 – Mobile Subscribers Share Comparison, 2014-2020
Figure 20 – Malaysia Mobile Subscriber Share Comparison, 2014-2020
Figure 21 – Mobile Net Adds (000’s) Comparison, 2015-2020
Figure 22 – Mobile Prepaid/Postpaid Net Adds (000’s) Comparison, 2015-2020
Figure 23 – Mobile Subscribers Forecast, 2014-2026
Figure 24 – Malaysia Mobile Subscribers by Generation (2G, 3G, 4G & 5G) Forecast, 2018-2026
Figure 25 – Mobile Revenue Share Comparison, 2014-2020
Figure 26 – Mobile Revenue Forecast, 2019-2026
Figure 27 – Mobile Subscribers ARPU (MYR), 2014-2020
Figure 28 – Subscriptions per MHz of Spectrum, Select Asia-Pacific Countries, 2020
Figure 29 –Mobile Handsets Monthly Download Data, 2017-2020
Figure 30 – Data Pricing Trends in Asia-Pacific (US$ per GB per month), 2017-2020
Figure 31 – Spectrum available for IoT in Malaysia
Figure 32 – Broadband Subscribers Share Comparison, 2014-2020
Figure 33 – Malaysia Net-Adds (000’s) by Operators, 2015-2020
Figure 34 – Malaysia Broadband Services by Speed Tiers
Figure 35 – Broadband Subscribers Forecast, 2019-2026
Figure 36 – Jendela 2020-22 Action Plan
Figure 37 – Malaysia Telecom Towers Market Share, 2020
Figure 38 – Malaysia Telecom Towers Forecast, 2020-2025
Figure 39 – Telecoms Providers EV/EBITDA Ranges
Figure 40 – 5G Network Slices Structure
Figure 41 – Effect of Frequency on Range
Figure 42 – 5G Capacity and Coverage Layers
Figure 43 – Relative Capex Required for 5G Network Infrastructure Investment
Figure 44 – Telecom Infra Project – OpenRAN Vision

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, 2019-2026
Table 4 – Historical Telecommunications Capex Spend, 2014-2020
Table 5 – Historical Telekom Malaysia Revenue, EBITDA & Capex, 2014-2020
Table 6 – Historical Maxis Revenue and EBITDA Mix, 2014-2020
Table 7 – Historical Celcom Revenue and EBITDA Mix, 2014-2020
Table 8 – Historical Digi Revenue, EBITDA & Capex, 2014-2020
Table 9 – Historical TIME dotCom Revenue, EBITDA & Capex, 2014-2020
Table 10 – Historical Estimated U Mobile Revenue, EBITDA & Capex, 2014-2020
Table 11 – Historical Mobile Subscribers, 2014-2020
Table 12 – Malaysia Mobile Subscribers Forecast, 2019-2026
Table 13 – Malaysia Mobile Subscribers by Generation (2G, 3G, 4G & 5G) Forecast, 2019-2026
Table 14 – Historical Mobile Service Revenue, 2014-2020
Table 15 – Historical ‘Big 3’ and U Mobile Blended Mobile ARPU, 2014-2020
Table 16 – Mobile Frequencies by Operators and by Band (MHz)
Table 17 – Historical Broadband Subscribers, 2014-2020
Table 18 – Historical Broadband Monthly ARPU, 2014-2020
Table 19 – Malaysia Broadband Subscribers Forecast, 2019-2026
Table 20 – International Submarine Cable Systems with Landing stations in Malaysia
Table 21 – Malaysia Telecom Towers Market Analysis, 2020
Table 22 – Malaysia Tenant Indicative Tower Leasing Annual Fees
Table 23 – Malaysia Telecom Towers Market Competitive Landscape Comparison
Table 24 – Malaysia Telecom Towers, Revenue, Mobile Subscribers, Penetration & ARPU Forecast, 2020-2025
Table 25 – edotco Key Performance Indicators, 2020
Table 26 – Sacofa Key Performance Indicators, 2020
Table 27 – OCK Key Performance Indicators, 2020
Table 28 – State Backed Company TowerCos Key Performance Indicators, 2020
Table 29 – State-Backed Towercos Towers Key Performance Indicators, 2020
Table 30 – Telekom Malaysia, Maxis, Digi, Axiata and TIME dotcom Telecoms Infrastructure Landscape
Table 31 – Technology Specifications (ADSL, FTTN, Fibre, 4G/LTE, 4G/LTE-A and 5G)
Table 32 – Telco Transaction Database, 2001-2020

Other Idem Est Research Telecoms Country Reports

Australia, China, India, Indonesia, JapanNew ZealandMalaysia, Myanmar, PhilippinesSouth Korea, TaiwanThailand, Vietnam,
Asia Pacific Telecom Towers

Telecoms Country Report

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