Malaysia IP Telephony Services 2005-2009 Forecast

IDC OPINION.

By Lincoln Lee,

A number of interesting developments in 2004 are expected to bring the Malaysian IP telephony industry to a higher playing field. Although the industry remains as competitive as ever, more established service providers are beginning to tap into emerging technologies to bring more innovative and creative products into the market. As the market progresses to maturity, the industry continues to evolve, and with this evolutionary process, only the fittest and nimblest of the players will survive. Among the key findings in this analysis are:

While the VoIP industry contributed only 9.3% to the country’s voice telecommunication revenue in 2004, IDC expects this contribution to grow significantly, reaching 23.0% in 2009.

The VoIP industry in Malaysia was a total of RM539.5 million in 2004 and is expected to grow 20.6% in the subsequent year, against a 3.0% decline of the overall voice telecommunication industry. This industry is further expected to increase at 2004-2009 compound annual growth rate (CAGR) or 19.4% throughout the forecast period, reaching a total of RM1, 308.9 million in 2009.

The key area of growth lies with business users, where business usage is expected to increase at a 2004-2009 CAGR of 22%, although the residential business remains a strong contributor toward the industry’s overall revenue.