InU-Mobile joined these three players, and this increased the number of players in the industry to four.
This resulted in a highly progressive market with local telco giants fiercely competing to gain their share of the market. The three major mobile operators — Maxis, Celcom and Digi, along with one dominant fixed operator TM Berhad, offer a highly competitive environment in the Malaysian mobile network operators market, while U-Mobile, a fourth mobile operator contributes to the already aggressive market that sees a close combat between these operators.
Another telco giant, Maxis that used to be at the top spot instood close with a subscriber base that totalled to almost 13 million in However, growth is expected to slow down as the market approaches saturation but is still expected to register a Compound Annual Growth Rate CAGR of 6.
Smartphones are gaining momentum Malaysians are progressively adopting smart devices especially amongst urbanites. In the Southeast Asia region, Malaysia has the highest daily Internet usage and 3G subscriptions had increased to over 18 million in from just over 14 million in The smartphone penetration in the Malaysian mobile market currently stands at This indicates the need for Malaysians to get connected to the Internet besides using their devices just for voice calls and SMS purposes.
Research also indicates that Malaysians replace their Smartphones every 21 months as opposed to other devices.
Demand for data Mobile network traffic continues to grow at an impressive rate as there is demand for data services in the country, which is driven by the uptake of these smart devices. The monthly data consumption of an average smartphone in Malaysia is expected to quadruple to an average of 2GB per user in This is a positive sign for mobile network operators to increase the bandwidth of network to meet the demands of data.
With increased data demand and spikes in geographies, network outage or congestion is imminent and to cope with the increasing diverging cost and revenue market realities due to the surging data traffic, service providers are focusing predominantly at reducing the cost structure as opposed to top line improvements.
Rise of m-commerce RM1. Mobile share is projected to reach Movie tickets are the main driver for smartphone purchases followed by fashion and accessories, while airline tickets being the most popular items Malaysians purchase on tablets. Challenges of m-payments Although purchasing items via mobile is a common activity amongst Malaysians, m-payments almost do not exist as it only make up only 0.
This is due to the common bank accounts that are easily accessible to a large majority of Malaysians and bank transfers are of preference when making online payments.
With over 8 million Malaysians owning a credit card, payments made through this method is also fairly common in mobile purchases. Another factor that discourages m-payments in the country is that none of the major mobile operators enjoy a monopoly of the sector, thus it is harder for the introduction and adoption of a widely used m-payments solution.
However, the Malaysian Government is quick to implement solutions in resolving this as it launched the Digital Malaysia initiative in with two key projects aimed at developing a trusted mobile digital wallet system and e-payment services for SMEs and micro enterprises in the country.Exit cost for Maxis is high and Maxis is iconic in Malaysia as the major service provider, it carries Malaysian’s reputation in the telecommunication industry worldwide.
Threat of New Entrants All telecommunication providers in Malaysia need a license to operate and its renewal will be granted upon multiple assessments by Ministry of Communication .
The Malaysian mobile phone service started with only one service provider in the s, which then increased to seven by mid s due to government liberalization policies. Nonetheless, this number decreased to three in , and this marked the beginning of. The Malaysian mobile phone service started with only one service provider in the s, which then increased to seven by mid s due to government liberalization policies.
Service Providers in Malaysia DiGi Telecommunications Sdn. Bhd. Maxis Communications Bhd Celcom Axiata Berhad U Mobile Sdn Bhd Yes 4G Tune Talk Telekom. The mobile phone service provider market in Malaysia is the biggest growth area in the telecommunication industry.
By the end of , there were almost million mobile subscribers in the country, and by the end of there were about million. The Market. The mobile phone service provider market in Malaysia is the biggest growth area in the telecommunication industry.
By the end of , there were almost million mobile subscribers in the country, and by .