Product Type: Market Research Report
Published by: Asia Pacific Telecom Research Ltd
Published: October 2007
Product Code: R690-11Description Malaysia is, potentially, a rich country with abundant natural resources and a reasonably well-educated workforce. It is a federation of 13 states and three Federal Territories. It aspires to be one of the region’s major economic powers, with the goal of being a fully developed country by 2020.
Geographically, it consists of two parts. Peninsular Malaysia is a long stretch of land extending southwards from Thailand to the Straits of Johore, which separate it from Singapore. Sabah and Sarawak, adjoining areas located on the island of Borneo, and a few offshore islands together make up East Malaysia. East Malaysia and Peninsular Malaysia are 600 km apart at their closest point.
Malaysia’s population is predominantly Malay, but about a quarter are Chinese and nearly 10% are of Indian extraction.
The country made remarkable economic progress in the decade up to the start of the Asian economic downturn in 1997. That downturn had a considerable impact on Malaysia, although not as great as on some of its neighbours. Since then, the country’s economy has been slowly recovering.
The telecom industry in Malaysia has always been one of contrasts and anomalies, and it continues in this vein. Also, the level of development in most areas is disappointing for a country with major ambitions.
For example, numerous fixed line licences were issued when liberalisation was introduced but even after more than a decade the incumbent operator still controls almost 100% of the local loop (and, therefore, dependent services such as fixed line broadband).
Local services in Malaysia have traditionally been seriously deficient. Today, the country’s teledensity is still below that of many other countries at a similar level of economic development, yet the number of fixed lines in service peaked about three years ago and is now in decline.
The country is not an easy one in which to provide long distance services. Much of it is mountainous and forested. This is true for a large part of Peninsular Malaysia and even more so in the East Malaysian states of Sabah and Sarawak. The sparse population also discourages the provision of telecom infrastructure in these areas.
The international services market is, like the rest of the fixed line segment, dominated by the previous monopoly operator. Despite the government’s efforts to introduce competition, little has materialised, though a number of VoIP operators have appeared in recent years.
In January 1985, Malaysia distinguished itself by becoming one of the first countries in the Asia-Pacific region to introduce mobile telephony. Despite the early start, the country then became something of a laggard in mobile use, a situation that has only recently been corrected.
Broadband is another case in point. The government has been promoting broadband use for many years yet the incumbent operator, which is still majority-owned by the government, did not introduce the service until 2001 and failed to promote it at all aggressively for some time. Even today the uptake of broadband is still fairly low. Malaysia has one of the lowest penetrations of broadband services throughout the Asia-Pacific region.
Broadband has a prominent place in the government’s plans. It is aiming at 25% household broadband penetration by the end of 2006, 50% by the end of 2008 and 75% by the end of 2010.
Wireless Data services were first introduced in 2000 but, apart from Short Messaging Services (SMS), have yet to take off to any great extent. Two 3G licences were issued in March 2003, with the first service beginning in May 2005 in certain of the more densely populated parts of the country. The second licensee introduced its service a couple of months later. Both licensees plan to extend their coverage progressively across most of the country.
Internet usage is currently quite low for a country at Malaysia’s stage of economic development. This is largely due to the slow uptake of broadband services. Another inhibiting factor has been the attempts by government to control the distribution of what it sees as objectionable material over the Internet.
Regarding e-Commerce, the government began to promote online business in 1998 through a number of initiatives, but the volume of online trading is still small. Most of the activity to date has been with B2B transactions; B2C transactions are still very limited.
For some years, paging promised to be very successful but, like a number of other telecom services in Malaysia, it never realised its potential. These services have now been discontinued.
Trunked Radio services appear to have reached something of a plateau. The rapidly growing coverage of cellular services has taken away much of the market for Trunked Radio, but the latter’s advantages in certain situations in the Malaysian environment remains.
The country is now reasonably well endowed with telecom infrastructure, at least in its populated areas. There are still a number of infrastructural deficiencies elsewhere, however. Services are lacking in much of the rural areas in the country, especially in East Malaysia.
Malaysia now has three Pay-TV operators, one employing direct-to-home (DTH) satellite transmission, a second using UHF cable and a third offering DSL services over the telecom network.
Overall, the telecom industry is showing significant progress in certain areas, but it continues to suffer from some serious problems. Specifically, competition is still limited (except in the mobile sector), while certain of the operators continue to experience financial difficulties.
Table of Contents - Key National Data
- Geography
- Population
- Gross Domestic Product
- Other Economic Indicators
- Fixed Line Data
- Mobile Phone Data
- Country Overview
- Introduction
- History
- Geography
- Population
- Politics
- Economy
- Summary
- Telecom Overview
- Background
- Current Situation
- Network Infrastructure
- National Objectives
- Multimedia Super Corridor
- Government Initiatives
- Latest Development Strategy
- Power Line Communications
- Payphones
- Corporate Information Superhighway
- Universal Service Provision
- Summary
- Regulatory Environment
- Background
- Current Situation
- Relevant Government Authority
- Telecommunications Policy
- Legislation
- The Communications and Multimedia Act 1998
- Malaysian Communications and Multimedia Commission
- New Licensing Regime
- Equal Access
- Foreign Ownership
- Summary
- Local Services
- Background
- Current Situation
- Access Lines in Service
- Service Providers
- Tariffs
- Wireless Local Loop
- Summary
- Long Distance Services
- Background
- Current Situation
- Network Infrastructure
- Service Providers
- Tariffs
- Equal Access
- Summary
- International Services
- Background
- Current Situation
- Service Providers
- Tariffs
- Equal Access
- Summary
- Mobile Telephone Services
- Background
- Current Situation
- Number of Subscribers
- Initial Licensees
- Corporate Developments
- Current Networks
- Vendor Market Shares
- CT2 Services
- Further Information
- Summary
- Wireless Data Services
- Background
- Current Situation
- Short Messaging Services
- Multimedia Messaging Services
- Wireless Application Protocol Services
- General Packet Radio Services
- 3G Mobile Services
- Additional Operators
- The Asia Mobility Initiative
- Summary
- Broadband Services
- Background
- Current Situation
- Number of Subscribers
- Digital Subscriber Line
- National Broadband Plan
- Broadband Telephony
- Further Information
- Summary
- Internet Services
- Background
- Current Situation
- Number of Subscribers
- Key Drivers of Internet Usage
- Key Inhibitors of Internet Usage
- Internet Service Providers
- Products and Services
- Tariffs
- Censorship
- Internet Telephony
- Restructuring the Broadband Market
- Internet Data Centres
- Internet Connectivity
- Rural Internet Centre Programme
- Internet-Related Organisations
- Further Information
- Summary
- Electronic Commerce
- Background
- Current Situation
- Existing Legislation
- Impending Legislation
- Value of E-Commerce
- Drivers of E-Commerce
- Government Support
- E-Commerce Initiatives
- Electronic Government
- Government Procurement System
- National Multi-Purpose Card
- E-Commerce Related Bodies
- Further Information
- Summary
- Paging Services
- Background
- Current Situation
- Number of Subscribers
- Service Providers
- Summary
- Trunked Radio Services
- Background
- Current Situation
- Number of Subscribers
- Service Providers
- Tariffs
- Summary
- Cable & Satellite Infrastructure
- Background
- Current Situation
- Domestic Satellites
- International Satellites
- Domestic Cable Operators
- Domestic Cables
- International Cables
- VSAT Systems
- Summary
- Pay-TV Services
- Background
- Current Situation
- Regulatory Issues
- Television Households
- Astro All Asia Networks
- Other Licensees
- Further Information
- Summary
- Company Profiles
- Cellular Communications Sdn Bhd
- Introduction
- Company Milestones
- Licences
- Products and Services
- Orbcomm
- Latest Financial Results
- Further Information
- Corporate Strengths and Weaknesses
- DiGi.Com Bhd
- Introduction
- Company Milestones
- Shareholders
- Products and Services
- Facilities for International Services
- Strategic Alliances
- Strategy
- Latest Financial Results
- Further Information
- Corporate Strengths and Weaknesses
- Maxis Communications Bhd
- Introduction
- Company Milestones
- Shareholders
- Subsidiaries
- Licences Received
- Networks
- Products and Services
- Associated Companies
- Development Plan
- Initial Public Offering
- Research and Development
- Latest Financial Results
- Further Information
- Corporate Strengths and Weaknesses
- Telekom Malaysia Bhd
- Introduction
- Company Milestones
- Shareholders
- Domestic Subsidiaries
- Overseas Subsidiaries and Associates
- Corporate Structure
- Internet Services
- Products and Services
- Latest Financial Results
- Further Information
- Corporate Strengths and Weaknesses
- Time dotCom Bhd
- Introduction
- Company Milestones
- Shareholders
- The Group’s Companies
- Group Corporate Activities
- Licences Received
- Fibre Optic Backbone
- Products and Services
- Market Positioning
- Strategy
- Research and Development
- Latest Financial Results
- Further Information
- Corporate Strengths and Weaknesses
- Contact Details
- Government Agencies
- Public Bodies and Associations
- Telecom & Communications Companies
- Other IT Companies
- Appendix 1
- Satellites
- Appendix 2
- Submarine Cables
- LIST OF EXHIBITS
- Country Overview
- EXHIBIT 2.1: Size and Growth of Population, 2005-2010
- EXHIBIT 2.2: Number of Households and Annual Growth, 2005-2010
- EXHIBIT 2.3: Number of People per Household, 2005-2010
- EXHIBIT 2.4: Population of Main Conurbations
- Telecom Overview
- EXHIBIT 3.1: Penetration Rate Targets, 2005
- EXHIBIT 3.2: Operators, Licence Dates and Market Shares
- EXHIBIT 3.3: Payphones by Type
- Regulatory Environment
- EXHIBIT 4.1: Licence Categories
- EXHIBIT 4.2: Equal Access Codes
- Local Services
- EXHIBIT 5.1: Business Lines in Service and Annual Growth, 2005-2010
- EXHIBIT 5.2: Residential Lines in Service and Annual Growth, 2005-2010
- EXHIBIT 5.3: Total Lines in Service, 2005-2010
- EXHIBIT 5.4: Annual Growth of Lines in Service, 2005-2010
- EXHIBIT 5.5: Teledensity, 2005-2010
- EXHIBIT 5.6: Fixed Charges
- Long Distance Services
- EXHIBIT 6.1: Long Distance Call Tariffs
- International Services
- EXHIBIT 7.1: International Tariffs
- Mobile Telephone Services
- EXHIBIT 8.1: Mobile Subscribers and Annual Growth, 2005-2010
- EXHIBIT 8.2: Penetration of Mobile Phones, 2005-2010
- EXHIBIT 8.3: Initial Licensees, Technologies Used and Start Dates
- EXHIBIT 8.4: Original, Revised and Latest Names of Mobile Operators
- EXHIBIT 8.5: Networks Currently in Operation
- EXHIBIT 8.6: Market Shares, by Operator
- Wireless Data Services
- EXHIBIT 9.1: WAP Rollout Schedule
- Broadband Services
- EXHIBIT 10.1: Broadband Subscribers and Annual Growth, 2005-2010
- EXHIBIT 10.2: Broadband Penetration by Population, 2005-2010
- EXHIBIT 10.3: Broadband Penetration by Households, 2005-2010
- EXHIBIT 10.4: TM Net’s Streamyx Tariffs
- EXHIBIT 10.4: Maxis Broadband Tariffs
- Internet Services
- EXHIBIT 11.1: Number and Growth of Internet Subscribers, 2005-2010
- EXHIBIT 11.2: Subscribers as a Percentage of the Population, 2005-2010
- EXHIBIT 11.3: Internet Service Providers and Internet Addresses
- EXHIBIT 11.4: TMnet Dial 1515 Tariffs
- EXHIBIT 11.5: TMnet Dial ISDN 1525 Tariffs
- Electronic Commerce
- EXHIBIT 12.1: Value of Business-to-Business E-Commerce, 2005-2010
- EXHIBIT 12.2: Value of Business-to-Consumer E-Commerce, 2005-2010
- EXHIBIT 12.3: Value of Business-to-Government E-Commerce, 2005-2010
- EXHIBIT 12.4: Value of B2B and B2C E-Commerce Combined, 2005-2010
- EXHIBIT 12.5: Growth of B2B and B2C E-Commerce, 2005-2010
- EXHIBIT 12.6: Per Capita Spending on E-Commerce, 2005-2010
- Trunked Radio Services
- EXHIBIT 14.1: Number and Growth of Subscribers, 2005-2010
- Cable & Satellite Infrastructure
- EXHIBIT 15.1: Launch Dates and Life Expectancy
- EXHIBIT 15.2: MEASAT Orbital Slots and Intended Purposes
- EXHIBIT 15.3: Foreign Satellites Serving Malaysia, with Locations
- EXHIBIT 15.4: Domestic Cables and Type
- EXHIBIT 15.5: International Cables and Abbreviations
- Pay-TV Services
- EXHIBIT 16.1: Number and Growth of TV Households, 2005-2010
- EXHIBIT 16.2: Proportion of Households with TV Set, 2005-2010
- EXHIBIT 16.3: Number and Growth of Pay-TV Subscribers, 2005-2010
- EXHIBIT 16.4: Penetration of Pay-TV in TV Households, 2005-2010
- EXHIBIT 16.5: Astro’s Tariffs
- Company Profiles
- Cellular Communications Sdn Bhd
- EXHIBIT 17.1: Celcom’s Telecom Licences and Years of Issue
- DiGi.Com Bhd
- EXHIBIT 17.3: DiGi’s Shareholders
- EXHIBIT 17.4: DiGi’s Profit and Loss Statements, 2006 and 2005
- EXHIBIT 17.5: DiGi’s Balance Sheets, 2006 and 2005
- Maxis Communications Bhd
- EXHIBIT 17.6: Maxis’ Main Shareholders
- EXHIBIT 17.7: Main Domestic Subsidiaries
- EXHIBIT 17.8: Main Foreign Subsidiaries
- EXHIBIT 17.9: Licences Awarded
- EXHIBIT 17.10: Maxis Group’s Income Statements, 2006 and 2005
- EXHIBIT 17.11: Maxis Group’s Balance Sheets, 2006 and 2005
- Telekom Malaysia Bhd
- EXHIBIT 17.12: Telekom Malaysia Shareholdings
- EXHIBIT 17.13: Domestic Subsidiaries and their Activities
- EXHIBIT 17.14: Overseas Subsidiaries and Associates
- EXHIBIT 17.15: TM’s Profit and Loss Statements, 2006 and 2005
- EXHIBIT 17.16: TM’s Balance Sheets, 2006 and 2005
- Time dotCom Bhd
- EXHIBIT 17.17: TIME dotCom’s Shareholders
- EXHIBIT 17.18: TIME dotCom’s Corporate Activities
- EXHIBIT 17.19: TIME dotCom’s Licences, Dates of Issue and Periods
- EXHIBIT 17.20: TIME dotCom’s Income Statements, 2006 and 2005
- EXHIBIT 17.21: TIME dotCom’s Balance Sheets, 2006 and 2005
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