Monday, 02 September 2019 10:28

Malaysia’s pay-TV services market set for growth

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Malaysia’s pay-TV services revenue is forecast to grow at a compound annual growth rate (CAGR) of 2% between 2018 and 2023 as the country’s fixed and mobile broadband services drive telecom market growth, according to a new report.

The report - ‘Malaysia Country Intelligence Report’ - from global anayst firm GlobalData frecasts that mobile data services will go onto account for 39% of the total telecom and pay-TV services revenue by the end of 2023 and remain the largest revenue contributor to the overall market through the forecast period.

In the pay-TV market, GlobalData expects that the continued growth in direct-to-home (DTH) and Internet Protocol television (IPTV) subscriptions will drive growth in pay-TV revenues through 2023.

And Deepa Dhingra, Telecom Analyst at GlobalData Dhingra says “operators are currently focusing on driving IPTV subscription base through fiber-based bundled IPTV services and are offering rebates and discounted set up fees to drive DTH subscriptions.”

According to the report, mobile data usage will more than double during the forecast period, reaching 12.5GB/month by the end of 2023 - driven by rising consumption of high-bandwidth online video content over smartphones backed by continued rise in smartphone ownership, widespread availability of 4G services and increasing adoption of postpaid plans with high data volumes.

Deepa says: “4G will to be the most adopted wireless network technology during the forecast period, driven by continued long-term evolution (LTE) network expansions and improvements by mobile operators.

“With planned 5G network trials by major mobile network operators (MNOs), GlobalData expects 5G services to be commercially available in Malaysia in 2022 and account for an estimated 1.7% of mobile subscriptions by 2023.

Fixed broadband revenue will register fastest growth over the forecast period, driven by steady rise in fixed broadband subscriptions backed by government and operator efforts to expand the nation’s fiber network and strong growth in fiber-to-the-x (FTTx) subscriptions across residential and business segments.

GlobalData says mobile voice revenue will decline over the forecast period due to a significant drop in monthly usage rates as customers shift to over-the-top (OTT)-based communication services.

And fixed voice revenue will also register a decline as a result of declining fixed voice average revenue per user (ARPU) and drop in circuit-switched lines.

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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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