Malaysia’s fixed communication services market is set for steady expansion over the next five years, supported by rising demand for high-speed connectivity and widespread adoption of fiber broadband networks.
According to GlobalData, Malaysia fixed communication industry revenues are expected to grow from $1.7 billion in 2025 to $2.1 billion by 2030, representing a compound annual growth rate of 4 percent, during the forecast period.
The market’s upward momentum reflects a structural transition toward fiber-based broadband infrastructure and increasing digital consumption among households and businesses across the country.
Fiber Broadband Adoption Accelerates Market Expansion
Fixed broadband services will be the primary growth engine in Malaysia’s fixed telecom sector. Revenue from broadband services is projected to grow at a CAGR of 4.3 percent through 2030, largely driven by the rapid uptake of Fiber-to-the-Home and Fiber-to-the-Building (FTTH/B) connections.
Fiber broadband offers significantly higher average revenue per user compared with legacy technologies such as DSL and copper-based connections. As a result, telecom operators are prioritizing fiber deployments to strengthen service quality and support bandwidth-intensive applications including cloud services, streaming platforms, remote work, and online education.
By 2025, fiber lines accounted for more than 97 percent of total fixed broadband connections in Malaysia, reflecting the country’s advanced stage of fiber network adoption. This dominance is expected to continue throughout the forecast period as operators accelerate infrastructure upgrades and consumers shift to faster connectivity solutions.
Fixed Voice Segment Faces Slow Growth
While broadband services are expanding rapidly, the traditional fixed voice segment continues to face limited growth. Revenue from fixed-line voice services is forecast to increase at a modest CAGR of 0.7 percent between 2025 and 2030.
The slowdown is primarily linked to the widespread adoption of mobile communication and over-the-top messaging and voice platforms. Consumers increasingly rely on smartphones, voice-over-IP services, and messaging apps for communication, reducing the relevance of conventional fixed-line telephony.
This structural shift toward mobile and digital communication platforms has become a long-term trend affecting fixed voice services globally, including in Malaysia.
Telecom Operators Intensify Fiber Investment
Malaysia’s competitive telecom landscape is shaped by operators expanding fiber networks and developing converged service offerings that combine mobile and broadband services.
CelcomDigi reported total revenue of 12.96 billion ringgit in 2025, supported by a subscriber base of 20.6 million mobile users. The company continues to strengthen its fiber business following the merger of Celcom and Digi, reaching 285,000 fiber subscribers. Growth in home and fiber services surged by 40.2 percent, highlighting strong consumer demand for high-speed broadband.
CelcomDigi maintained a disciplined investment approach with capital expenditure of 1.6 billion ringgit in 2025. Mobile ARPU remained stable at 60 ringgit for postpaid customers and 29 ringgit for prepaid users.
Meanwhile, Maxis recorded service revenue of 8.91 billion ringgit. The operator’s consumer home segment crossed the 1 billion ringgit revenue milestone for the first time, supported by a fiber subscriber base of 799,000.
To sustain growth, Maxis invested approximately 1 billion ringgit in network capacity upgrades and fiber expansion. The company closed 2025 with 9.98 million mobile subscribers, though postpaid ARPU slightly moderated to around 64 ringgit.
Telekom Malaysia Strengthens Leadership in Fixed Services
Telekom Malaysia continues to dominate Malaysia’s fixed broadband and fixed voice markets through its nationwide fiber infrastructure.
For the financial year 2025, the company reported revenue of 11.87 billion ringgit. Its broadband brand, Unifi, serves more than 3.1 million fixed broadband customers and remains a key contributor to the company’s growth.
Telekom Malaysia maintained capital expenditure at 14.9 percent of revenue to support expansion of its national fiber backbone and data center infrastructure. The company’s strong footprint in the FTTH/B segment and its ongoing network modernization strategy continue to reinforce its leadership position in Malaysia’s fixed telecom sector.
Government Programs Expand Digital Connectivity
Malaysia’s digital transformation is also being supported by government initiatives aimed at improving nationwide connectivity. The Jalinan Digital Negara (JENDELA) initiative plays a central role in expanding fiber broadband access and strengthening telecommunications infrastructure.
By the end of 2025, internet coverage in populated areas had reached 99.71 percent, while the number of premises passed by network infrastructure increased to 9.81 million.
These efforts are designed to reduce the digital divide and accelerate digital adoption across rural and underserved regions, while also supporting Malaysia’s broader economic growth and digital economy ambitions.
Fiber Infrastructure to Power Malaysia’s Digital Future
Industry analysts note that the continued expansion of fiber networks will remain the primary driver of value creation in Malaysia’s fixed communications market over the coming decade. Government-backed infrastructure programs combined with sustained operator investment are expected to strengthen connectivity nationwide.
As Malaysia advances toward a fiber-dominant telecom landscape, high-speed broadband services will play a crucial role in enabling digital services, enterprise transformation, and the country’s long-term digital economy development.
FASNA SHABEER