Voice services revenue takes 83.5% of Malaysia's TNS market, says IDC

15 June, 2005

Kuala Lumpur, June 15, 2005 – IDC Malaysia has recently published an update on the telecommunications network services (TNS) market in Malaysia, covering both voice and data services. The study reports a few surprises in the market, as it continued to suffer a decline in 2004. Although performing better than the previous year, the market still recorded almost RM130 million in losses.

Entitled Malaysia Telecom Network Services 2005-2009 Forecast, the report also provides a market sizing and forecasts on the TNS market in the country from 2005 to 2009. "In essence, the growth in data services over the last couple of years has not been adequate enough to counter the decline in voice services revenue. Nonetheless, industry participants are underway reorganizing their operations and placing more weight on the data services market, which IDC forecasts to grow at 11.3% compound annual growth rate (CAGR) between 2005 and 2009”, says Melissa Chong, Senior Research Analyst, IDC Malaysia.

Moreover, the study reports that voice services accounts for the lion's share in the TNS market in 2004, ringing in 83.5% of the total TNS market revenues, while the remaining 16.5% is contributed by data services, as illustrated in Figure 1.

Furthermore, IDC reports that Malaysia's local data services market is twice as big as its international data services market in 2005, recording RM767 million in revenues. Dedicated leased lines remain the most common form of local networking, making up 60% of local data services revenues, while domestic IP VPN takes the second place. However, domestic IP VPN is expected to attain the highest growth rate to contribute up to 50% of the total data services revenue by 2009, basing on its rapid uptake in 2004, growing by more than 150% over prior year, with early adopters in local financial/banking and government industries."

For more information about this research, kindly contact Hazmi Yusof at 603-2169-7522 or hyusof@idc.com, or Stephen Chong at 603-2169-7521 or ckchong@idc.com.

Contact

Chee-Kian Chong
Events & Marketing Executive
Tel: +603-2169-7521
Fax: +603-2163-5098
Email:ckchong@idc.com