Fixed communication services revenue to grow at 2% CAGR during 2023-2028 in Malaysia, forecasts GlobalData

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Fixed Communication

The fixed communication services revenue in Malaysia is expected to increase at a compound annual growth rate (CAGR) of 2.0% from $1.9 billion in 2023 to $2.1 billion in 2028, supported by the fixed broadband service segment, forecasts GlobalData, a leading data and analytics company.

GlobalData’s Malaysia Fixed Communications Forecast (Q2 2023) reveals that the fixed voice service revenue will decline at a CAGR of 11.9% over 2023-2028, due to the continued drop in circuit-switched subscriptions and a decline in fixed voice average revenue per user (ARPU) levels with users continuing to shift from traditional telephony to mobile/OTT communication services.

However it is indicated that fixed broadband service revenue, will experience CAGR of 5.8% during 2023-2028, This growth will be primarily fueled by the rising popularity and acceptance of FTTH/B services, which tend to have higher ARPU.

Fixed communication

Sarwat Zeeshan, Telecom Analyst at GlobalData, comments: “Fiber lines are estimated to account for more than 95% share of the total fixed broadband lines in 2023 and will remain the leading broadband technology through 2028. This growth in fiber lines will be driven by the growing demand for high-speed broadband connectivity and efforts by the government and telecom operators to upgrade and expand fiber broadband infrastructure in the country.

Telekom Malaysia will lead both fixed voice and fixed broadband segments by subscriber share through 2028. The telco’s leading position in the fixed broadband segment is supported by the growing share in the FTTH/B service segment, on the back of strong focus on extending broadband network coverage. For instance, Telekom Malaysia, in partnership with the government and under the 12th Malaysia Plan (12MP), aims to deploy 4,370 fiber-optic network hubs in the country in two phases.

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