What is the projected revenue boost for Malaysian telcos from 5G by 2025?

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Projected Revenue Boost for Malaysian Telcos from 5G by 2025

The rollout of 5G services in Malaysia is projected to significantly enhance the annual revenues of local telecommunication operators, potentially reaching up to RM3.76 billion (US$900 million) starting from 2025. This projection is based on a study that also forecasts a substantial increase in 5G adoption across the region.
Anticipated Revenue Increase and Market Penetration

The study indicates that by 2025, 5G services could contribute an additional RM3.76 billion annually to the revenues of Malaysian telecom operators. Concurrently, 5G penetration in Malaysia is expected to approach 40 per cent by the same year. This growth is part of a larger trend within the Asean region, where the total number of 5G subscriptions is anticipated to surpass 200 million in 2025.
Government and Private Sector Investment

Malaysia's commitment to fostering the 5G ecosystem is evident in its financial allocations. The 2020 Budget included a RM50 million grant specifically for 5G ecosystem development, supplemented by an additional RM25 million in matching grants aimed at promoting digital application pilot projects for fibre optics and 5G infrastructure. Furthermore, a collaborative private-public sector initiative is set to deploy 5G use cases across 32 sites spanning six states, underscoring a multifaceted approach to 5G implementation.
Regional Infrastructure Investment and Operational Strategies

Across the Asean region, telecommunication operators are anticipated to invest approximately RM41.83 billion (US$10 billion) in 5G infrastructure by 2025. To manage capital expenditure and ensure a sustainable return on investment, operators are expected to adopt a phased approach, allowing 4G and 5G networks to operate concurrently during the transition period.
Challenges and Opportunities for 5G Deployment

Despite the promising outlook, the study highlights several key challenges that need to be addressed to fully realise 5G's potential in the region. These include the slow availability of spectrum for 5G services, which can lead to suboptimal network roll-out. Additionally, considerations around consumer pricing and the development of value-enhancing enterprise uses are crucial for widespread adoption. The inherent capabilities of 5G, such as speeds up to 50 times faster than 4G, significantly lower latency, and reduced power consumption, are expected to drive new revenue streams from both consumer and enterprise clients, enabling advanced applications like high-definition video streaming, cloud gaming, and augmented reality experiences.

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What is the projected revenue boost for Malaysian telcos from 5G by 2025?

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