By Anas Abu Hassan
KUALA LUMPUR, Dec 8 (Bernama) -- The telecommunications industry delivered a resilient performance IN 2025 despite operating within a highly saturated environment, reflecting a maturing market consistent with global trends.
According to data and analytics company GlobalData’s Telecom Forecast, the moderate growth in the telecommunications industry during the first half of 2025 is expected to continue for the remainder of the year.
GlobalData’s research also reveals that the telecommunications market will remain consistent at RM32.3 billion in 2025 and well placed to maintain this momentum with a 2.2 per cent year-on-year growth to reach RM32.0 billion next year.
Its senior principal analyst for technology, Alfie Amir, noted that key telecommunications companies (telcos) have accelerated their transformation efforts, adopting emerging technologies such as artificial intelligence (AI) and application programming interfaces (APIs).
“This is to mitigate declines in legacy services — voice, messaging, data — while expanding new revenue streams,” he told Bernama.
Alfie said 2025 is expected to see a slight 1.9 per cent year-on-year decline in the overall value of telecommunications services (mobile and fixed-line services) from RM31.9 billion to RM31.3 billion.
5G dual network rollout
Key milestones in 2025 for the telecommunications industry include the rollout of Malaysia’s second 5G network by U Mobile Sdn Bhd, following the company’s green light from the government to implement its network under the dual wholesale network strategy.
U Mobile received the official letter of award from the Malaysian Communications and Multimedia Commission (MCMC) for the deployment of its 5G network in March.
The company began operating its 5G network on July 14, and it officially launched its 5G standalone network, 5G Ultra, in August 2025, aiming to cover 80 per cent of Malaysia’s population by the second half of 2026, including key high-traffic public areas.
In October, the newest 5G network provider signed a wholesale access agreement with Eastel, a new mobile virtual network operator (MVNO) owned by telecommunications services provider Anchor Communications, which is set to launch in the first quarter of next year.
The five-year contract is U Mobile’s first wholesale 5G and 4G access agreement and will see the company providing its next-generation 5G infrastructure and 4G network.
U Mobile has upgraded 2,976 sites, providing 58.2 per cent 5G coverage in populated areas as of Oct 31, reflecting an active rollout phase in the 5G national network expansion.
5G Advanced makes its debut
While the country is still in the process of rolling out its dual 5G network, YTL Communications, through its Yes brand, introduced 5G Advanced technology in Malaysia.
YTL Communications made history as the first telco in Malaysia to commercially launch 5G Advanced, the next evolution of 5G technology, with coverage already active across the Klang Valley and full nationwide availability targeted by December 2025.
The company announced that Yes 5G-Advanced delivers faster speeds, improved coverage, AI-ready connectivity, and network slicing that enables prioritised and stable connections.
Meanwhile, Digital Network Bhd (DNB), the country’s first 5G network operator, has partnered with Ericsson to launch the 5G Advanced technology on its network.
This new technology, leveraging artificial intelligence (AI), enhances the user experience with ultra-low latency and high throughput, delivering a truly immersive experience.
JENDELA and regional connectivity
Under Budget 2026, MCMC will roll out the MADANI Submarine Cable Connection (SALAM) project with an allocation of RM2 billion.
The project will include constructing 3,190 kilometres of undersea cables from Johor to Sabah and Sarawak to strengthen national connectivity and internet access.
In addition, broadband coverage will be further expanded through the National Digital Network (JENDELA) phase 2 project to 2,700 new locations, particularly in rural and remote areas, with an allocation of RM780 million.
Communications Minister Datuk Fahmi Fadzil revealed that the internet and communication coverage in populated areas across Malaysia has reached 98.82 per cent as of July 31.
In March, the Mobile World Congress 2025 saw Malaysia solidifying its digital transformation with the exchange of 19 memoranda of understanding (MoUs) between local players and global technology leaders.
The MoUs reflected the commitment of industry players to advancing innovation, particularly in technology, AI, 5G, and telecommunications.
Telecommunications outlook for 2026
According to Alfie, the telecommunications market is expected to maintain its growth momentum, with 2.2 per cent year-on-year growth, reaching RM32.0 billion in 2026.
This growth will be underpinned by the continuous shift from traditional telecommunications models toward ‘techco’ capabilities, supported by broader investments in digital services, enterprise information and communication technology (ICT) and next-gen connectivity.
“AI will remain a crucial part of telecommunications strategy. Telcos are expected to increase their AI investments to improve operational efficiency, drive automation, product innovation and customer engagement and experience.
“The enterprise segment will continue to be a key growth engine for telcos, having accounted for about 20 per cent of telcos’ overall revenue and is expected to grow strongly,” he added.
GlobalData projects that the enterprise ICT services market for telcos will grow by 17.4 per cent to RM44.5 billion in 2026 and will double by 2029.
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