Download PDF - ETP - Pemandu

Business Opportunities
Growth in this area will come primarily from fixed broadband and
data lines. Fixed broadband subscribers will grow by 10.5 per cent
compound annual growth rate (CAGR), as existing fixed line users
take advantage of bundled packages and consumer appetite for
services such as IPTV, online gaming and music increase.
Business Opportunity 1
Fixed Services
Fixed data lines will grow by 2.6 per cent CAGR as more companies
require their own internal networks, contributing RM1.7 billion in
incremental GNI and creating 3,250 new jobs by 2020.
The industry has seen marginal growth of just under two per cent,
representing a revenue rise of RM200 million which is a significant
increase given the maturity of Malaysia’s fixed line business. The
upturn is due to growing demand for data services and the advent
of new applications that require higher bandwidth. The High
Speed Broadband Project, a public-private partnership, has seen
strong acceptance, surpassing the world benchmark for uptake in
a supply driven project.
Fixed-line services is seeing a greater uptake by the industry.
The high mobile penetration rates have made the mobile
players extend their services to include fixed line services. The
technology convergence and expanded demand has also seen
satellite players incorporating fixed services into their offering.
The constant market competition, technology convergence and
expanded demand by the end users will see a further demand for
fixed services largely concentrating on data and no longer voice.
Business Opportunity 2
Mobile Services
Subscriptions to mobile services are expected to increase in all
segments: voice, data and broadband, contributing RM3.6 billion
in incremental GNI and creating 5,788 new jobs by 2020. Voice
lines will rise by 2.7 per cent CAGR due to Malaysia’s growing
population and subscribers’ increasing tendency to have multiple
mobile accounts. Mobile data, inclusive of SMS, content and
services that do not require internet connections will grow in
line with subscriber uptake. Mobile broadband subscription will
see the most significant rise of 10.5 per cent CAGR as 3G users
begin to access the Internet, more advanced devices encourage
Malaysians to use their mobile phones as their primary means of
Internet access and lower costs allow mobile Internet access to
become more affordable.
As at the first half of 2011, mobile penetration rate stood at 123.5
per cent or 35.3 million subscribers of which 80 per cent are prepaid
users. Meanwhile, 3G subscriptions are at 9.8 million.
The higher demand for data will see a demand for new spectrum
to be made available to the market. This is further compounded
by technology advancement such as Long Term Evolution (LTE). In
addition, increased competition and technology convergence will
see new services being offered which may impact the margins of
the players. This is only to be expected in such a mature market.
NKEA: Communications Content and Infrastructure EPP 10 and Business Opportunities
Business Opportunity 3
Courier, Post and Broadcast
Courier, post and broadcast GNI contribution will grow by 5.2 per
cent annually over the next ten years, contributing RM1.6 billion in
incremental GNI and creating 7,563 new jobs by 2020.
This sector will also offer a broader range of services including
commercial transaction fulfilment, warehousing, inventory
management, demand planning for manufacturers and assembly
services. MCMC’s new multi-tiered licensing system will impose
higher requirements for top-tier licence holders and encourage
consolidation, raising the sector’s investment capacity.
The post and courier sector also has the opportunity to capitalise
on the expected growth in electronic commerce by offering
services specifically designed to meet merchant needs. Additional
opportunities also exist in regional logistics expansion.
Based on the recent development of the market for post and
courier services as a result of divestment of equity by the
government investment arm in Pos Malaysia, new services will be
introduced for the betterment of the public.
The entry of a new Japanese courier provider Ta-Q-Bin that began
its services in September 2011 will see the market move into
a more specialised service. Pos Malaysia too has expanded its
courier portfolio to offer more personalised services including
home services through its partnership with VADS.
Even though paid broadcasting penetration has almost plateaued,
new opportunities for the broadcast sector will open up as
new services are introduced. Digital Terrestrial TV will permit
more channels to be broadcast and positively impact revenues
beginning 2014 when MCMC plans to mandate the switching off
of analogue broadcasting.
Digital Terrestrial TV will see the regulator tendering out for the
private sector in the fourth quarter of 2011. This will start the
process of analog conversion to digital in a more coordinated way
as well as realise the importance of the Digital Spectrum dividend
in the era of broadband.
Upside opportunities may also come from mobile TV and 3D TV
content, with solutions being explored to address content creation
for these new channels and overcoming barriers to adoption.
On broadcasting, much will be dependent on the outcome of the
DTTB tender as 2012 will see the initial planning and rollout by
the industry with challenges from market dynamics to ensure that
this is a viable business.
Business Opportunity 4
Regional Operations
Malaysian companies in this sector such as Axiata, Maxis and
Astro are aggressively pursuing opportunities in large and rapidly
growing markets such as Indonesia, India and Bangladesh. These
investments currently account for approximately RM2.5 billion of GNI
and will generate additional GNI of RM4.8 billion with 664 new jobs
by 2020.
161