Malaysia’s mobile service revenue is expected to grow at a compound annual growth rate (CAGR) of 0.7 percent from $5 billion in 2020 to $5.2 billion in 2025 due to steady decline in mobile voice and mobile messaging service revenues, according to GlobalData.
Mobile voice and mobile messaging service revenues of telecom operators in Malaysia 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 of mobile operators in Malaysia will register a decline of 3.2 percent CAGR during the forecast period, due to declining voice subscriptions as well as voice service average revenue per user (ARPU) levels.
Hrushikesh Mahananda, Associate Project Manager at GlobalData, said mobile data service revenue of telecoms in Malaysia will increase at a CAGR of 2.9 percent, 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.
4G will remain the leading mobile technology by subscriptions in Malaysia through the forecast period 2020-2025, driven by continued 4G network expansion by operators, supported by the government’s Jalinan Digital Negara Plan (JENDELA) plan initiative to improve 4G network coverage.
Maxis led the mobile services market in terms of subscription share in 2020 and will remain the leading mobile operator through 2025. Maxis’ leadership will be primarily driven by its focus on the postpaid segment by offering promotional plans and investments in 4G network expansion, particularly in rural areas.