Steady growth in the consumption of mobile data, fixed broadband, VoIP and pay-TV services is set to help Malaysia's telecom market remain viable through to 2021, according to GlobalData, a leading data and analytics company.

The company's latest report: Malaysia: Expansion of High-Speed Wireless and Fixed Broadband Networks to Drive Telecom Market Growth' confirms that the sector, which has struggled since 2014, is expected to recover from 2019 onwards returning a flat performance of +0.01% growth through 2021 with estimated sales of $8.4bn , the same figure it posted in 2016.

The Malaysian telecom services market suffered a revenue decline of 8.1% in 2016, mainly due to a weak economy, a price war on broadband services and a general decline in voice revenue. Revenues were further reduced as operators competed with each other to offer cheaper plans to counter weak consumer spending.

Mobile services revenue is set for a flat compound annual growth rate (CAGR) of 0.8% until 2021, due to the huge erosion in mobile voice revenues caused by user migration from voice telephony to OTT-calling applications together with free calling offered by operators as part of bundle deals.

GlobalData Analyst Alfie Amir, commented: 'Mobile voice revenue, which used to be a backbone to the industry, contributed 37.8% of total service revenues in 2016 is now facing stiff competition from OTT-calling applications. As a large number of users are now migrating to these services while traditional revenue streams are being eroded.'

Fixed broadband, mobile data and the pay-TV segments are set to provide a boost to sales, driving the market upwards and helping it to stay afloat over the next four years. Mobile data revenue is expected to grow at a CAGR of 2.8% to reach $2.7bn in 2021, driven by the rising consumption of high-bandwidth online content on smartphones, and adoption of 4G/LTE-A.

Amir added: 'Data services will be the largest revenue generator from 2018, contributing 50% of total revenues in 2021. With ravenous demand for data, operators will continue to invest in LTE/LTE-A and fiber network expansion to maintain growth.'

Fixed broadband revenue growth will be led by rising FTTx adoption and rising demand for multiplay services.

Information based on GlobalData's report:Malaysia: Expansion of High-Speed Wireless and Fixed Broadband Networks to Drive Telecom Market Growth

GlobalData plc published this content on 27 October 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 October 2017 05:07:12 UTC.

Original documenthttps://www.globaldata.com/mobile-data-fixed-broadband-pay-tv-drive-malaysian-telecom-market-2021/

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