Malaysian mobile service revenue to peak at $6B by 2028

Malaysian mobile service revenue to peak at $6B by 2028

Driven by growing demand for 4G and 5G services.

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Total revenue from Malaysia's mobile service market is expected to rise from US$5.3 billion in 2023 to US$6 billion in 2028, according to analyst firm GlobalData.

Rising at a compounded annual growth rate (CAGR) of 2.3 per cent, the growth is said to be driven by Malaysia's mobile data services segment due to ongoing 5G network expansions.

Indeed, Malaysia's mobile data revenue is set to grow at a CAGR of 4.1 per cent expansions as the rise in 5G spurs the adoption of higher ARPU-yielding services.

GlobalData’s forecast found that revenue from the mobile data market will “offset” the decline in earnings from mobile voice services and enable overall sector growth as mobile voice revenue is set to decline at a CAGR of 2.3 per cent.

This is likely due to a “widespread consumer shift” towards the over-the-top (OTT) communications platforms – a media service offered directly to viewers via the internet – and an expected decline in mobile voice average revenue per user (ARPU).

“The average monthly mobile data usage in Malaysia is expected to increase from 19.4 GB in 2023 to 44.4 GB in 2028, driven by the growing consumption of online video and social media content over smartphones, thanks to the growing availability and adoption of 4G and 5G services and data-centric plans offered by mobile network operators,” said Sarwat Zeeshan, telecom analyst at GlobalData.

In addition, GlobalData found that 4G service will remain the leading technology generation by subscriber base until 2027,  despite a significant decrease in market share for 4G subscriptions over the forecast period.

Subscriptions for 5G services, however, are expected to increase at a rapid pace for the next five years and even surpass 4G in 2028 to account for a majority 60 per cent share of total mobile subscriptions.

This growth will be driven by rising demand for high-speed wireless broadband services and the growing availability of 5G services led by operators’ 5G network expansions and the government’s “Jalinan Digital Negara (JENDELA)” plan, which is also targeting 5G coverage expansion in the country.

CelcomDigi leads the mobile services market in Malaysia in terms of mobile subscriptions, followed by Maxis,” said Zeeshan. “CelcomDigi will retain its leading position through to 2028, supported by its strong focus on 4G/5G network expansion and modernisation to cater to the rising demand for high-speed services by residential and enterprise segments.

“CelcomDigi expanded its 4G network to 96.4 per cent of the country’s population in 2022. It also announced a full-scale program to build a digital network, integrating and upgrading its networks with LTE-A and 5G technologies.”

Tags mobile servicesGlobalData

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