Malaysia’s mobile service revenue to become stagnant in 5 years

Malaysia’s mobile service revenue to become stagnant in 5 years

Given the steady decline in mobile voice and mobile messaging service revenues, Malaysia’s mobile service revenue is expected to grow at a negligible compound annual growth rate (CAGR) of 0.7% from US$5bn in 2020 to US$5.2bn in 2025, said a study.

According to a report by GlobalData, a data and analytics company, mobile voice and mobile messaging service revenues will continue to decline over the forecast period because of widespread consumer shift towards over-the-top (OTT)-based communication platforms.

Mobile voice service revenue will register a decline of 3.2% CAGR during the forecast period, due to declining voice subscriptions as well as voice service average revenue per user (ARPU) levels, it said.

In the meantime, mobile data service revenue will increase at a CAGR of 2.9%, driven by the steady rise in the adoption of higher ARPU 4G services and growing mobile data service consumption.

The average monthly data usage will increase from 12.5GB in 2020 to 16GB in 2025, driven by the growing consumption of mobile video services over smartphones, on the back of data-centric plans offered by MNOs.

With all the major mobile service providers preparing for the 5G network, GlobalData expects 5G to be commercially launched in 2021. The Malaysian Communications and Multimedia Commission has established a new special purpose vehicle, Digital Nasional Berhad (DNB) for the deployment of a 5G network nationwide.

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