The revenue from fixed communication services in Malaysia is projected to grow at a rate of 1.8% annually, increasing from USD 1.9 billion in 2024 to USD 2.1 billion in 2029.
This growth will be fueled by the rising demand for fixed broadband services, especially fiber-optic options, while fixed voice services are expected to decrease due to the shift towards mobile and over-the-top (OTT) communications. Telekom Malaysia is expected to maintain its leadership position in both sectors, according to GlobalData, a prominent data and analytics company.
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Fixed Voice and Broadband Services Outlook
GlobalData's research indicated that revenue from fixed voice services will decline by 8.9% annually from 2024 to 2029 as consumers move away from traditional telephony towards mobile and OTT communication services, leading to a drop in average revenue per user (ARPU) for voice services. On the other hand, revenue from fixed broadband services is projected to increase by 4.4% annually during the same period, driven by the growing adoption of higher average revenue per user (ARPU) fiber-optic services.
Pradeepthi Kantipudi, a telecom analyst at GlobalData, explained that fiber lines accounted for over 97% of total fixed broadband lines in 2024 and are expected to remain the dominant broadband technology through 2029. This growth in fiber lines is being driven by the increasing demand for high-speed broadband and efforts by the government and telecom companies to enhance and expand fiber broadband infrastructure across the country.
Market Leader
Telekom Malaysia is expected to lead in both fixed voice and fixed broadband segments in terms of subscriber share through 2029. The company's strong presence in the Fiber-to-the-Home (FTTH) and Fiber-to-the-Business (FTTB) segments and focus on expanding fiber networks contribute to its leading position. For example, Telekom Malaysia, in collaboration with the government under the Twelfth Malaysia Plan, aims to deploy 4,370 fiber-optic network hubs in the country by the end of 2025, specifically focusing on rural areas to improve internet connectivity. This initiative is anticipated to enhance digital connectivity and economic development in Malaysia.
Kantipudi concluded that as fixed voice services decline, the expansion of fiber infrastructure will be crucial in supporting economic growth and narrowing the digital divide, especially in underserved rural areas.
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