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Frost and Sullivan: Malaysian telcos push for converged services

AvantiKumar | July 9, 2009
Malaysia's licensing framework helpful, according to new study

KUALA LUMPUR, 9 JULY 2009 Malaysia's licensing framework is helpful to the country's mobile service providers intent on rolling out multiple services, according to analyst firm Frost and Sullivan.

Malaysia's licensing framework is formulated to be both technology and service-neutral, which helps operators to roll-out multiple services easily, said Frost and Sullivan senior industry analyst, Kamlesh Kalwar, commenting from the company's new study, Asia-Pacific Converged Services Market Potential.

This, coupled with 3G deployments have seen the three operators Celcom, Maxis and DiGi pushing for dual-play services, or wireless broadband services along with mobile services, said Kalwar.  

DiGi has had some good success with its fresh marketing ideas in the mobile space and is now trying to establish itself as a credible broadband player, he said. TM, after having separated itself from the mobile business (Celcom), will now be adopting triple-play services [fixed-line, Internet and IPTV] by the fourth quarter of 2009.

We could also see free IP phone and pay TV offerings being offered by the mobile service providers as connectivity improves and customers continue to adopt 3G services.

Converged services to grow revenues

Kalwar said the study showed that about 20.8 per cent of households across 14 Asia-Pacific countries subscribed to dual-, triple- and quadruple-play (quad-play) services in 2008 for total bundled billings of US$58.7 billion. By 2014, residential bundled-service revenues are expected to hit US$88.3 billion.

Bundling two or more services such as fixed voice, broadband, mobile and pay TV into attractive price plans has proven to result in fewer customers churn than single-service offerings, said Kalwar.

The three forms of convergence are driving the delivery of bundled or multiple services to a single user convergence of networks, content and devices, he said. 


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