Charles EstherMalaysia’s mobile services sector is poised for strong growth in the coming years, with revenue expected to climb from $5.1 billion in 2024 to $6.1 billion by 2029, according to a new industry report.
The rise is being powered by the rapid adoption of 5G technology and increased use of over-the-top (OTT) platforms, particularly for communication and media consumption.
5G to Lead the Mobile Connectivity Revolution
The report highlights 5G adoption as a primary growth driver, with current coverage already reaching over 82% of populated areas.
By 2025, 5G is expected to surpass 4G in the number of active mobile subscriptions — a significant milestone in Malaysia’s digital transformation.
By 2029, 5G is projected to make up a dominant 84% of total mobile subscriptions, reflecting the increasing reliance on high-speed mobile networks to support data-heavy applications and services.
Mobile Data Usage to More Than Double
The surge in 5G connectivity is expected to dramatically increase mobile data consumption.
Average monthly usage per user is set to grow from 21.6 GB in 2024 to 51.9 GB in 2029, driven primarily by streaming services, online gaming, and social media apps.
As consumers shift more of their daily activities to mobile platforms — from work and entertainment to shopping and education — data demand is soaring.
OTT Services Fuel Communication Shift
While data revenues climb, mobile voice service revenues are on the decline, with a projected compound annual decrease of 1.1% through 2029.
The report attributes this drop to the growing popularity of OTT communication platforms such as WhatsApp, Telegram, and other VoIP-based services.
These platforms not only offer free or low-cost communication but also increasingly integrate multimedia, file sharing, and group collaboration features that traditional voice calls can’t match.
Malaysia’s 5G Policy Shift Paying Off
A major catalyst behind this mobile evolution has been the Malaysian government’s shift from a single wholesale 5G network model to a dual network structure in late 2023.
This move opened the door for more competition and innovation in the telecom sector.
Notably, U Mobile was granted the green light to build the country’s second 5G network, breaking the previous monopoly held by Digital Nasional Berhad (DNB).
This policy shift is already showing signs of spurring faster rollout and improved service quality across operators.
CelcomDigi Maintains Market Lead
Among mobile network operators, CelcomDigi held the largest market share by mobile subscriptions in 2024 and is expected to retain its lead through 2029.
The company’s success is attributed to its aggressive 5G rollout, network modernization strategies, and competitive prepaid and postpaid packages offering unlimited calls and generous data bundles.
Outlook: A Dynamic, Data-Driven Future
Malaysia’s mobile services market is undergoing a transformative phase, driven by cutting-edge technologies and changing user habits.
As 5G becomes mainstream and OTT services gain even more traction, telecom providers will need to innovate continually to stay ahead in this rapidly evolving digital landscape.
