Malaysian Mobile Services Market, 2016

Malaysian Mobile Services Market, 2016

Shifting Industry Dynamics Supporting Growth of Smaller Participants at the Expense of Incumbent Companies

RELEASE DATE
31-Oct-2017
REGION
Asia Pacific
Research Code: 9ABE-00-34-00-00
SKU: TE03785-AP-MR_21045

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Description

Malaysia had 44.6 million mobile service subscriptions with a penetration rate of 143.7% in 2016. Mobile penetration has been on a decline since 2014 as a result of the introduction of GST in 2015. The mobile services market is highly prepaid in nature with 77.1% prepaid. Postpaid subscriptions have been increasing as a result of more competitive bundle plans. Due to a prolonged price war, short-term growth of mobile network operators had been hampered. This, coupled with increased data quota-centric competition, has impacted growth of mobile service revenues. Prepaid ARPU is at $7.60 and is higher than in most Southeast Asian countries with exception of Singapore.

Postpaid subscriptions are on the rise with growth recorded mainly by the smaller mobile service providers. Increasing demand for mobile data services is expected to help offset the decline in voice and SMS ARPU over the next 5 years, mostly due to threats from OTT services. However, the current downward pressure on data pricing is a key threat to mobile operator’s data monetization strategy to offset declines in voice and SMS. The market is still being mainly served by 3G networks but 4G LTE networks are likely set to take over within the next 3-5 years.

WiMAX networks will be replaced by 4G LTE networks by 2020 and after migrating consumers to the 4G LTE network, WiMAX services will no longer be offered in Malaysia from 2021. As WiMAX phases out, the industry will be dominated by 4G LTE networks and served using LTE-Advanced Pro as an industry standard.

The recent spectrum re-allocation by SKMM in February 2016 has resulted in the biggest beneficiary being U Mobile. Armed with new spectrum from July 2017, U Mobile looks set to take on the bigger participants. However, the upcoming expiration of spectrum at 2.1GHz, 2.300 GHz, and 2.6 GHz and the availability of the 700MHz band from 2018 will trigger another spectrum re-allocation exercise in 2017. This may change the competition dynamics as well as impact the profitability of mobile network operators in the coming years. Companies mentioned in this study include Maxis, DiGi, Celcom, Webe, Altel, Telekom Malaysia and YTL Communications.

Key Questions this Study will Answer
•     What are key attributes of the market?
•     How big is the market?
•     What are the market share and competitive dynamics of key participants in the market?
•     What industry trends are impacting key participants?
•     What is the market outlook

Table of Contents

Key Findings

Malaysian Mobile Services Market Overview

Malaysian Mobile Services Market Overview (continued)

Malaysian WiMAX Services Market Overview

Mobile Services Market—Subscription and Service Revenue Forecast

Mobile Services Market—Subscription and Service Revenue Forecast Discussion

WiMAX Services Market—Subscription and Service Revenue Forecast

WiMAX Services Market—Subscription and Service Revenue Forecast Discussion

Technology Mix—Mobile

Service Mix—Mobile Voice

Service Mix—Mobile Data

Service Mix—WiMAX Voice and Broadband

Service Mix—Mobile Broadband

Spectrum Reallocation in Malaysia

Mobile Services Market Outlook

Mobile Services Market Outlook (continued)

Market Share—Mobile Services Market

Market Share—WiMAX Services Market

Speed Comparison

Speed Comparison (continued)

Quality of Service Comparison

Quality of Service Comparison (continued)

Quality of Service Comparison (continued)

Revenue Comparison

Revenue Comparison (continued)

Growth Opportunity 1—Mobile Services

Growth Opportunity 2—Mobile Services

Strategic Imperatives for Success and Growth

Key Takeaways

Acronyms

Legal Disclaimer

The Frost & Sullivan Story

Value Proposition: Future of Your Company & Career

Global Perspective

Industry Convergence

360º Research Perspective

Implementation Excellence

Our Blue Ocean Strategy

Related Research
Malaysia had 44.6 million mobile service subscriptions with a penetration rate of 143.7% in 2016. Mobile penetration has been on a decline since 2014 as a result of the introduction of GST in 2015. The mobile services market is highly prepaid in nature with 77.1% prepaid. Postpaid subscriptions have been increasing as a result of more competitive bundle plans. Due to a prolonged price war, short-term growth of mobile network operators had been hampered. This, coupled with increased data quota-centric competition, has impacted growth of mobile service revenues. Prepaid ARPU is at $7.60 and is higher than in most Southeast Asian countries with exception of Singapore. Postpaid subscriptions are on the rise with growth recorded mainly by the smaller mobile service providers. Increasing demand for mobile data services is expected to help offset the decline in voice and SMS ARPU over the next 5 years, mostly due to threats from OTT services. However, the current downward pressure on data pricing is a key threat to mobile operator’s data monetization strategy to offset declines in voice and SMS. The market is still being mainly served by 3G networks but 4G LTE networks are likely set to take over within the next 3-5 years. WiMAX networks will be replaced by 4G LTE networks by 2020 and after migrating consumers to the 4G LTE network, WiMAX services will no longer be offered in Malaysia from 2021. As WiMAX phases out, the industry will be dominated by 4G LTE networks and served using LTE-Advanced Pro as an industry standard. The recent spectrum re-allocation by SKMM in February 2016 has resulted in the biggest beneficiary being U Mobile. Armed with new spectrum from July 2017, U Mobile looks set to take on the bigger participants. However, the upcoming expiration of spectrum at 2.1GHz, 2.300 GHz, and 2.6 GHz and the availability of the 700MHz band from 2018 will trigger another spectrum re-allocation exercise in 2017. This may change the competition dynamics as well as
More Information
No Index No
Podcast No
Author Mei Lee Quah
Industries Telecom
WIP Number 9ABE-00-34-00-00
Is Prebook No