Telecommunications in Malaysia: An Overview

Malaysia has a well-developed telecommunications sector, with a high mobile penetration rate of over 150% as of 2020. This means that the majority of the population has access to mobile phone services.

The country has a strong focus on digitalization, with the government aiming to make Malaysia a high-income, digitally-driven economy by 2025. This goal is reflected in the country's telecommunications infrastructure.

Malaysia's telecommunications sector is dominated by two main players: Celcom and Digi. These companies offer a range of services, including mobile, broadband, and fixed-line services.

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Malaysia's telecom system has a rich history that spans over a century, evolving from colonial telegraph lines to a modern IP-based network.

The British colonial administration established the country's earliest telecommunications facilities, introducing manual magneto-operated telephones in Perak in the 1880s.

Kuala Lumpur received telephone service in 1891, and a major telephone line connecting Province Wellesley in Penang to Johor Bahru was constructed around the turn of the century.

The first underground cable was laid in 1915, linking the central Perak towns of Taiping, Kampar, and Teluk Anson.

By 1930, an automated magneto exchange was commissioned in Kuala Lumpur to handle the volume of telephone traffic.

In the 1930s, all telephone exchanges in the Malayan Trunk System could communicate with exchanges in Java, the Philippines, the United States, Canada, and Mexico using shortwave radio-telephone transmitters.

A Marconi Radio Terminal was installed at the Kuala Lumpur Telephone Exchange in the 1930s to manage overseas calls.

Much of the telecommunication's infrastructure was damaged during World War II and the Japanese occupation.

The British repaired trunk routes, restored fallen telephone poles, and replaced damaged or stolen copper wires in 1946, upon re-establishing their position in Malaya.

The Posts & Telegraphs Department was divided into two separate units during the Japanese occupation, but was reunited briefly by the British upon their return.

The Malaysian Telecommunications Department and Postal Services Department were created in 1946, with the former controlling telegraph, telephone, and wireless services.

Malaysia has made significant investments in its network infrastructure, with the construction of 1,833 new communications towers in rural areas nationwide as part of the Time 3 and Time 3 Extension initiatives.

The country's telecom towers are estimated to reach 33,700 towers in 2020, with the largest tower company being edotco, the infrastructure arm of Axiata. edotco grew out of the original carve-out of Celcom.

The Jendela initiative, a Malaysian government program, aims to build full-fibre networks to homes, businesses, and government buildings, covering 98% of the population by the end of 2025. This is expected to drive strong growth in the broadband market.

Here's a breakdown of the number of fixed broadband household subscriptions in Malaysia as of Q4 2024, by speed range:

In Malaysia, significant efforts have been made to upgrade and expand network coverage.

The Time 3 and Time 3 Extension initiatives involved the construction of 1,833 new communications towers in rural areas nationwide.

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These new towers have greatly improved connectivity in rural areas, enabling more people to access high-speed internet and mobile services.

A total of 4,895 base stations at existing communications towers were upgraded from 2G to 3G/4G to support higher broadband speeds in rural areas.

This upgrade has significantly enhanced the overall network performance and capacity in rural areas.

The Jendela initiative, a Malaysian government program, aims to build full-fibre networks to homes, businesses, and government buildings covering 98% of the population by the end of 2025.

This ambitious project will further accelerate the growth of fixed broadband services in Malaysia.

Here's a breakdown of the new communications towers built under the Time 3 and Time 3 Extension initiatives:

While the exact number of new towers built under the Time 3 Extension initiative is not specified, the overall impact of these initiatives on rural network coverage has been substantial.

The Malaysian Submarine Cable System to Sabah and Sarawak was introduced in 2014 through a public-private partnership between MCMC and Telekom Malaysia Berhad.

This project aimed to meet the growing demands for bandwidth between Peninsular Malaysia and East Malaysia.

Completed in 2017, the system serves as a redundancy to existing domestic submarine cable services that have been operating since 1995.

The system was designed to provide a reliable and efficient way to connect East Malaysia to the rest of the country.

The partnership between MCMC and Telekom Malaysia Berhad was a key factor in the success of the project.

The system has been instrumental in supporting the growing needs of the region, including the increasing demand for online services and data transmission.

Fixed Infrastructure Investments have been a key focus for Malaysian telecommunications companies in recent years. Telekom Malaysia nearly halved its Capex in 2019, while Maxis, Celcom, and Digi have maintained more consistent investment profiles.

The Jendela initiative is a Malaysian government program aiming to build full-fibre networks to cover 98% of the population by 2025. This initiative has driven strong growth in the broadband market, with competition from TIME, Celcom, Maxis, and Digi pushing the dominant fixed broadband incumbent, Telekom Malaysia.

The Capex to GDP ratio in Malaysia has been relatively stable between 2014 and 2018 but has been sliding in 2019 and growing again from 2020 onwards through to 2026.

Here are some key investments made by Malaysian telecommunications companies:

These investments have contributed to the growth of the broadband market, with fixed broadband accounting for 6.79% of the total broadband market share in 2019, comprising 2.947 million subscriptions.

Malaysia has a diverse range of broadband service providers, including Telekom Malaysia, Celcom Axiata Berhad, Digi Telecommunications Sdn Bhd, Maxis Berhad, U Mobile Sdn Bhd, and YTL Communications.

Telekom Malaysia is the dominant fixed broadband incumbent, but it faces competition from other providers. In fact, TIME dotCom, Celcom, Maxis, and Digi are driving growth in the fixed broadband market.

The National Fiberisation and Connectivity Plan (NFCP) aims to improve broadband access and availability across Malaysia. By 2023, the plan targets Gigabit availability in selected industrial areas and all State Capitals.

Here's a breakdown of the main broadband service providers in Malaysia:

By 2022, the NFCP aims to provide 100% availability for premises in State Capitals and high-impact areas with speeds of at least 500 Mbit/s.

Mobile services in Malaysia are dominated by a few major players, including CelcomDigi Berhad, Maxis Berhad, YTL Communications, and U Mobile Sdn Bhd. These companies have a significant presence in the market, with CelcomDigi Berhad being one of the largest telecom operators in the country.

As of Q4 2019, there were 44.601 million mobile cellular subscriptions in Malaysia, with a penetration rate of 135.4% per 100 inhabitants. This is a testament to the widespread adoption of mobile services in the country.

Mobile broadband subscriptions are also on the rise in Malaysia, with a penetration rate of 134.8% per 100 inhabitants in 2023. The number of mobile broadband subscriptions in Malaysia has grown steadily over the years, reaching 44.8 million in 2024.

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Here's a breakdown of the top 5 mobile network operators (MNOs) in Malaysia, based on market share in 2024:

The mobile market in Malaysia is expected to continue growing, with the publisher forecasting 15.5m 5G subscribers by 2026. This will be driven by the increasing demand for high-speed data services and the expansion of 5G networks across the country.

In Malaysia, there are several broadband service providers that offer fixed and mobile broadband services. Telekom Malaysia (TM), Celcom Axiata Berhad (Celcom), Digi Telecommunications Sdn Bhd (Digi), Maxis Berhad (Maxis), U Mobile Sdn Bhd (U Mobile), and YTL Communications (Yes) are the major players in the market.

Telekom Malaysia offers both fixed and mobile broadband services, while the others offer both as well, except for YTL Communications which only offers mobile broadband in Sabah. This means that consumers have a variety of options to choose from when it comes to broadband services.

Here's a list of the broadband service providers in Malaysia, their offerings, and the states where their services are available:

This list highlights the various broadband service providers in Malaysia and their offerings, which can help consumers make informed decisions when choosing a broadband service.

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Mobile Cellular services in Malaysia are provided by major service providers such as Celcomdigi Berhad, Maxis Berhad, YTL Communications, and U Mobile Sdn Bhd.

The number of mobile cellular subscriptions in Malaysia stood at 44.601 million as of Q4 2019, with a penetration rate of 135.4% per 100 inhabitants. This is a significant number, considering the country's population.

Mobile Virtual Network Operators (MVNOs) also operate in Malaysia, with 10 MVNOs in operation as of Q4 2019. This provides consumers with more options and flexibility in choosing their mobile service providers.

Nationwide, 5G coverage for Malaysia is targeted to reach 80% coverage of populated area (COPA) by the end of 2024. This is a significant milestone, considering the growth of mobile internet penetration in the country.

Mobile (4G) coverage for Sarawak is already at 93.87% as of Q3 2024, indicating a high level of mobile connectivity in the state.

Here is a list of major mobile service providers in Malaysia:

Malaysia has a significant number of internet users, with 28.304 million users as of 2018.

The country's internet coverage has been improving, with Sarawak achieving 90.09% coverage in Q3 2024.

Malaysia's country code is MY, which is used for its top-level domain.

The Malaysian government's Jendela initiative aims to provide full-fiber networks to 98% of the population by the end of 2025.

This initiative will also ensure 100% 4G coverage with minimum speeds of 100Mbps.

Here's a quick rundown of Malaysia's telecommunications market structure:

These four network operators dominate the market, but face competitive pressure as the market shifts towards postpaid and data-centric usage.

Malaysia has a competitive telecom market with several major players. The top 5 telecom companies in Malaysia are YTL Communications Sdn Bhd, Ansar Mobile (Redtone Digital Berhad), Celcomdigi Berhad, Maxis Berhad, and ONE XOX Sdn Bhd (XOX Sdn Bhd).

These companies have a strong market presence through extensive network coverage and a variety of service offerings. YTL Communications Sdn Bhd, for example, is known for its innovative solutions and extensive network coverage in Malaysia.

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The Malaysia telecom market is moderately consolidated, with a few dominant players leading the industry. Key players include YTL Communications Sdn Bhd, Ansar Mobile (Redtone Digital Berhad), Celcomdigi Berhad, Maxis Berhad, and ONE XOX Sdn Bhd (XOX Sdn Bhd).

Here are some of the key features of these telecom companies:

The telecom market in Malaysia is witnessing significant trends such as the expansion of 5G networks and increasing mobile internet penetration. New entrants must focus on innovative service offerings and competitive pricing to disrupt the market and capture market share.

To start a telecommunications business in Malaysia, you'll need to register your company and obtain the necessary licenses. This involves checking for an untrademarked name and registering with the Malaysian Communications and Multimedia Commission (MCMC).

The MCMC governs the licensing process, and your applied permits will fall under the Postal Services Act 2012, the Digital Signature Act 1997, and the Communications and Multimedia Act 1998. Make sure you understand the requirements set out by the Malaysian government.

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There are four types of activities that must be licensed under the Communications and Multimedia Act of 1998:

Before venturing into the industry, it's essential to be aware of the risks and challenges involved. Conduct thorough research on the telecommunications market to make informed decisions and minimize risk.

The telecommunications industry in Malaysia is a complex and ever-evolving market. According to the report, the top 10 Malaysia Telecom MNO Companies are CelcomDigi, Maxis, U Mobile, Yes (YTL Communications), and Unifi Mobile (Telekom Malaysia).

These companies dominate the market, with CelcomDigi holding the top spot in terms of market share. The report also highlights the key insights into the telecommunications sector in Malaysia, including detailed statistics on revenue and market capitalization.

The revenue of the telecommunications sector in Malaysia has been steadily increasing from 2017 to 2023, with a market capitalization that has also seen significant growth from 2016 to 2023. Here are the top 5 companies by market share in 2023:

The report also provides insights into the financials of these companies, including employee headcount, which can be useful for those looking to work in the industry.