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10 predictions for Malaysia's telecom market

Posted: 30 Jan 2015 ?? ?Print Version ?Bookmark and Share

Keywords:telecommunications? OTTP? LTE? telecom?

International Data Corporation has unveiled the top 10 forecasts that will greatly influence Malaysia's telecommunications industry this year.

Service providers are expected to redefine its strategies, transform its organisations, launch new solutions and technologies to retain its growth, and stay relevant in market.

"2015 will be a critical year for telecom service providers. The telecom market is undergoing a major revolution driven by the changes of user requirements, revenue drivers and new technologies," said Alfie Amir, Research Manager, Telecoms, IDC Malaysia. "Service providers with the right strategy will begin to see returns of their transformation investment while traditional providers will continue to struggle."

The top 10 predictions are:

1. Total telecom spending will experience slower YoY growth from 5.5 to 2.8 per cent

The total spending on telecom services is expected to continue to grow but at slower rate, with only 2.8 per cent YoY increase from $9.46 billion (RM34.3 billion) in 2014 to $9.74 billion (RM35.3 billion) in 2015. This is due to the slow growth in mobile services market, which accounts to 74 per cent the total telecom revenue in 2014.

2. Business segment will continue to dominate fixed line market accounting to 59 per cent of the total revenue

Business segment has been the key driver for fixed line services. 60 per cent of the total fixed line revenue in 2015 is expected to be from this segment. The third platform adoption will drive higher requirements from enterprise users to their telecom providers, and hence creating new opportunities for telecom providers to expand their services beyond connectivity.

3. Fixed line service providers will expand their services to ICT solutions and triple the addressable market

Fixed line providers are expected to expand their existing services to ICT solutions, addressing the changes in market requirements. This will triple their total addressable enterprise market in 2015 to around $4.52 billion (RM16.4 billion). The focus is expected to be on ICT solutions integrated with connectivity services, such as unified communications, cloud and network management services.

4. Fixed line service providers will customise their ICT solutions focusing on high potential verticals

As fixed line providers are expanding their products and solutions to ICT, addressing the market requirements for different vertical industries become more challenging. In 2015, fixed line providers are expected to customise their solutions based on different vertical requirements, and focus on high potential verticals such as banking and government.

5. Managed services trend will begin to rise in telecom market

Enterprises in Malaysia are beginning to look for more efficient delivery model for their ICT solutions, as part of their cost saving initiatives. Managed services market in Malaysia is expected to grow strongly by 9.3 per cent to $1.76 billion (RM6.4 billion) in 2015. Telecom players are expected to explore this opportunity with their large connectivity customer base.

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