Malaysia: Mobile service revenue to increase at 3.2% CAGR
June 20, 2024
The total mobile service revenue in Malaysia is poised to increase at a compound annual growth rate (CAGR) of 3.2 per cent from $5.2 billion (€4.8bn) in 2023 to $6.1 billion in 2028, supported by growth in mobile data service revenues, according to GlobalData, th data and analytics company.
GlobalData’s Malaysia Mobile Broadband Forecast (Q1 2024) report reveals that the growth in mobile data service revenue will offset the decline in mobile voice service revenue during the forecast period.
While mobile voice service revenue will decline at a CAGR of 1.7 per cent between 2023 and 2028 due to consumer shift towards OTT communication platforms and subsequent decline in mobile voice ARPU, mobile data revenue will increase at a CAGR of 5.1 per cent over the same period, driven by the continued rise in mobile internet subscriptions, growing adoption of 5G services and an increase in mobile data average revenue per user (ARPU) over the forecast period.
Sarwat Zeeshan, Telecom Analyst at GlobalData, commented: “The average monthly mobile data usage in Malaysia is expected to increase from 18.9 GB in 2023 to 44.9 GB in 2028, driven by the growing consumption of online video and social media content over smartphones, thanks to the data-centric offers extended by telcos with their 4G and 5G service plans.”
GlobalData expects 5G service adoption to increase over the forecast period driven by the growing consumer demand for high-speed connectivity and the ongoing 5G network expansions by the government and major telecom operators across the country. For instance, the government of Malaysia announced plans to expand 5G coverage to about 85 per cent of rural population across the country by 2024-end. 5G subscriptions will account for the majority 74.5 per cent share of total mobile subscriptions in 2028.
Zeeshan concluded: “CelcomDigi led the mobile services market in Malaysia in terms of mobile subscriptions in 2023, followed by Maxis. CelcomDigi will retain its leading position through to 2028, supported by its focus on 5G and 4G LTE network expansions and its various affordable prepaid and postpaid plans with unlimited calls and data allowances.”