Malaysia - Telecom
The Malaysian telecommunications
market is a thriving mobile market with four large network operators, an
incumbent fixed-line provider with near-monopoly and the overall market
underpinned by strong economic fundamentals, albeit some political
The author forecasts that mobile
subscriptions will continue to grow in the 2021-26 period and fixed broadband
subscribers will also continue to grow and increase its household penetration
over the same period. The ratio of the telecommunications sector revenue to GDP
is declining from a peak in 2010, sliding down every year since then.
Mobile subscribers numbers and
revenue are growing strongly and the back of population growth and the market
shift to postpaid. The publisher forecasts 15.5m 5G subscribers by 2026.
Overall telecoms revenue is
expected to grow through to 2026 after a marked slow down in 2019 and 2020 due
to legacy voice revenue pressure partially offset by mobile data growth in the
addition to the COVID-19 pandemic impact.
Mobile Subscribers and Revenue
Over the last five years, the
market shifted to postpaid as subscribers move to with increased data
allowances. Overall, the number of prepaid subscribers decreased significantly.
Mobile network operators are facing competitive pressure with the market
shifting to legacy prepaid voice and SMS to data-centric usage increasingly
becoming the sole offering differentiator.
Broadband Subscribers - FTTH Push
and Fixed Wireless
The Jendela initiative is a
Malaysian government program of building full-fibre networks to homes,
businesses and government buildings covering 98% of the population by the end
of 2025 as well as providing 100% 4G coverage with minimum speeds of 100Mbps.
The broadband market is now
experiencing strong growth mostly driven by competition by TIME, Celcom, Maxis
and DiGi with Telekom Malaysia still the dominant fixed broadband incumbent.
Households growth and new investments
by Maxis, TIME dotCom and YTL will drive up the fixed-broadband subscribers.
Telecom Tower Infrastructure
getting a boost from the Jendela initiative
The Malasian telecom towers is
reaching an estimated 33,700 towers in 2020. The largest tower company
(towerco) is edotco, the infrastructure arm of Axiata also the owner of Celcom,
one of the original Malaysian mobile network operators. edotco grew out of the
original carve-out of from Celcom.
The remaining share of the
towerco market is relatively fragmented with 42% still owned by mobile
operators, Maxis, DiGi, Celcom, U Mobile and Telekom Malaysia. Over 16% of the
telecom towers are controlled by the 13 State-backed telecommunications
infrastructure companies controlling a large swath of regional coverage,
leaving only 4% for private independent towercos.
Thematics - Telecoms Infrastructure
/ 5G / M&A / e-Commerce
Infrastructure funds, pension
funds and government funds are assigning high valuation multiples to
telecommunications infrastructure assets such as mobile towers, data centres,
submarine cable and fibre infrastructure.
Investment funds are assigning
high valuation multiples to telecommunications infrastructure assets such as
mobile towers, data centres, submarine cable and fibre infrastructure. This
report outlines some real market examples of how investors view and value these
investments with real industry examples and EV/EBITDA comparatives and