Malaysia - Market Intelligence Report
|
Market Intelligence Reports provide an invaluable mix of vital market data and background information, including telecoms regulation. Malaysia's communications and multimedia industry - represented by telecommunications operators Telekom Malaysia, Maxis Communications, DiGi.com, and Time dotCom as well as postal operator Pos Malaysia and broadcasters ASTRO and Media Prima - was worth approximately M$26,800 million in 2005, up by 9.4% from M$24,500 million in 2004. In 2005, the communications and multimedia industry as a whole (including broadcasters, postal service providers, and value-added service providers) constituted 10.2% of Malaysia's gross domestic product (GDP), up from 9.7% in the previous year. Government-controlled incumbent fixed-line operator Telekom Malaysia continues to dominate the market, accounting for around 59% of total communications revenue, 88% of total fixed-line services revenues, and - via its Celcom subsidiary - 41% of total cellular telephony service revenues in 2005. In the fixed-line market, its major competitors are TIME dotCom and Maxis Communications. In the cellular sector, it squares off against Maxis Mobile and DiGi.com. Telekom Malaysia and Maxis each received third-generation (3G) universal mobile telecommunications service (UMTS) licences in 2003 and both companies began offering commercial services in 2005. DiGi.com did not pursue a 3G licence in 2003, but did submit a bid for one of two new licences auctioned in early-2006; however, it lost out to fixed-line operator TIME dotCom and pay-TV operator MITV. The new licensees will operate as mobile virtual network operators (MVNOs). It has been suggested that DiGi.com may buy TIME dotCom, but no formal takeover talks had been announced at the time of writing. Telekom Malaysia also dominates the booming Internet sector, accounting for 56.5% of all dial-up subscribers and over 90% of all broadband subscribers by the end of 2005. In this market, its main rival is Malaysia's oldest Internet service provider, Jaring, a unit of the MIMOS research and development group. Jaring did not receive a formal network licence until mid-2004, meaning that it was never able to compete very effectively with the incumbent. Now that this limitation has been removed, Jaring's fixed wireless access (FWA) broadband services are expected to give it an added leverage in competing with Telekom Malaysia. Nevertheless, Jaring's narrowband subscriber base and market share fell markedly in 2004; a resurgence in market share was witnessed in 2005, although this belies a fall in total dial-up subscribers. It has been suggested that Jaring could merge with TIME dotCom or take over TIME's fixed-line operations to allow TIME to concentrate on the cellular/3G market and Jaring to possibly engage in the WiMAX field. In late-2006, the Malaysian regulatory authority said that it had received 17 applications for 2.5GHz spectrum licences, which are widely expected to be auctioned in February/March 2007. The licences will enable licensees to provide wireless broadband services using WiMAX technology. Among those companies known to be interested in bidding for the licences are Telekom Malaysia, Maxis Communications, and MITV. At the time of writing it was not known how many licences would be issued or whether these would allow for regional or national coverage.
This Market Intelligence Report was produced as part of
|

