Recent findings from GlobalData suggest significant growth in Malaysia’s mobile service revenue, driven primarily by the expanding adoption of 5G technology and over-the-top (OTT) communications. By 2029, mobile revenue is expected to grow at 3.5% annually, reaching $6.1 billion. This growth can be attributed to a surge in mobile data demand and the rollout of 5G services.
The growing consumption of online video and social media via smartphones is projected to increase monthly mobile data usage from 21.6 GB in 2024 to 51.9 GB in 2029. This trend is primarily due to the increased availability and adoption of 5G services along with attractive data-centric offers by telecommunication providers.
Interestingly, while revenue from mobile voice services is on a decline, there’s expectations for mobile data service revenue to soar. The popularity of OTT platforms and a decline in voice Average Revenue Per User (ARPU) have contributed to this decrease.
According to Sarwat Zeeshan, telecom analyst at GlobalData, the average monthly mobile data usage in Malaysia is set to increase as a result of 5G services and attractive data plans offered by providers.
5G subscriptions are expected to dominate the market, surpassing 4G by 2025. This swift transition has been encouraged by significant operator investments and government-backed rollout initiatives. By the end of 2024, Malaysia had achieved 5G coverage in over 82% of populated areas.
Moreover, the dual-network model is becoming a reality. In late 2024, the Malaysian Communications and Multimedia Commission (MCMC) granted approval to U Mobile to deploy the country’s second 5G network, shifting Malaysia from the state-run Digital Nasional Berhad (DNB) monopoly.
The move to a dual-network model appears promising, allowing for increased competition and potentially better services for consumers. As Malaysia’s telecommunications market evolves, businesses are exploring new opportunities unlocked by 5G connectivity. This signals a bright future for machine-to-machine (M2M) and Internet of Things (IoT) applications.
Industry players like CelcomDigi remain dominant, driven by 5G network expansions and modernization efforts. Their focus on diverse prepaid and postpaid plans, offering unlimited calls and data, bolsters their leading market position.
