Wednesday, April 17, 2024

Mobile Service Revenue in Malaysia to Increase at 2.8% CAGR – Forecast

Malaysia’s mobile service revenue is poised to increase at a compound annual growth rate (CAGR) of 2.8 percent from $5.6 billion in 2022 to $6.5 billion in 2027, mainly driven by the mobile data segment, which is well supported by the growing availability and adoption of 5G services, according to GlobalData, a leading data and analytics company.

GlobalData’s Malaysia Mobile Broadband Forecast (Q2-2022) reveals that mobile voice service revenue will decline at a 1.7 percent CAGR over the forecast period due to the widespread consumer shift towards over-the-top (OTT)-based communication platforms and the subsequent decline in voice service average revenue per user (ARPU) levels.

Mobile data service revenue, on the other hand, will increase at a CAGR of 4.9 percent between 2022 and 2027, driven by the steady rise in the subscriptions to higher ARPU yielding 5G services and growing adoption of higher data volume plans.

Hrushikesh Mahananda, Telecom Research Analyst at GlobalData, comments: “The average monthly data usage will increase from 16.1GB in 2022 to 40.8GB in 2027, driven by the growing consumption of mobile video and social media content services over smartphones, on the back of data-centric plans offered by MNOs. Moreover, the projected rise in 5G services adoption will stimulate mobile data usage over 2022-2027.”

4G will remain the leading mobile technology by subscriptions in Malaysia until 2026. 5G subscriptions will surpass 4G subscriptions and go on to account for 47% share of the total mobile subscriptions in 2027, driven by 5G network expansion initiatives by the telecom regulator and mobile operators.

Mahananda concludes: “Maxis led the mobile services market in terms of subscription share in 2021 and will remain the leading mobile operator through 2025. Maxis’ market leadership will be primarily driven by its strong focus on the postpaid segment with discounted bundled plans and investments in network expansion and upgradation.”


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