Video driving mobile revenue growth in Malaysia - GlobalData

Video driving mobile revenue growth in Malaysia - GlobalData

Supported by growth in mobile data, fixed broadband and pay-TV services, the combined telecom and pay-TV service revenue in Malaysia is poised to grow at a CAGR of 2.4% over the forecast period 2017-2022.

According to leading data and analytics company GlobalData, the mobile services market in the country will be primarily driven by mobile data, which will account for nearly 59% of total mobile service revenue by the end of 2022.

GlobalData’s ‘Malaysia Country Intelligence Report’ predicts that mobile data usage will more than double over the forecast period to 10.4GB/month by year-end 2022, primarily driven by rising consumption of online video content on smartphones, backed by MNOs’ data-centric and application-specific plans.

Sandeep Kolakotla, Telecom Analyst at GlobalData, says: “Mobile data revenue will continue to rise and play a major role in the country’s total telecom service revenue growth to 2022, backed by steady rise in smartphone subscriptions and growing adoption of 4G LTE/LTE-A services with higher ARPU. In addition, the ongoing 5G trials by operators like Celcom and the planned commercial rollout of 5G services in 2022, will create major opportunities for investors and vendors in the Malaysian telecom market.”

GlobalData predicts that, at the same time, mobile voice usage will continue to drop due to rising adoption of over-the-top communications.

In the fixed services market, a steady rise in adoption of fibre-to-the-home/building (FTTH/B) - supported by the government and operators’ efforts to strengthen the nation’s fibre network and expand fibre broadband connectivity in rural areas - will drive fixed broadband revenue.

In the pay-TV market, GlobalData expects that steady rise in adoption of direct-to-home (DTH) services with higher ARPU, and the robust growth projected in Internet protocol television (IPTV) subscriptions in line with rising demand for multi-play service bundles with integrated TV access, will drive pay-TV revenue growth over the forecast period.

Kolakotla concludes: “The operators will look to add new pay-TV subscriptions by offering promotional free preview of channels during the initial few months of subscriptions, and expanding their IPTV services leveraging on the ongoing expansion of broadband network in the nation.”

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