Communications Content and Infrastructure

Communications Content and Infrastructure

The Communications Content and Infrastructure (CCI) sector spans a wide ecosystem, from content generation to networks, services and devices. In 2009, the sector contributed RM22 billion of GNI from telecommunications, TV and broadcasting as well as post and courier.

For Malaysia to transition from a middle-income to high-income economy the continued development of the communications content and infrastructure sector is fundamental. The sector should now build on the infrastructure investments of the past and shift to providing applications and content in order to enable the knowledge-based society.

 
List of EPPs
Communications Content & Infrastructure
NoEPPs2020 GNI (millions)JobsLocationStatus
1.0Communications Content and Infrastructure - EPP 1: Nurturing Malaysia's creative content industry3,014.9110,422Nationwide Work In Progress 
3.0Communications Content and Infrastructure - EPP 3: Connecting 1Malaysia1,783.152,056Nationwide Work In Progress 
4.0Communications Content and Infrastructure - EPP 4: Establishing e-Learning for students and professional training1,487.35800Nationwide Work In Progress 
5.0Communications Content and Infrastructure - EPP 5: Launching e-Healthcare1,402.45250Nationwide Work In Progress 
6.0Communications Content and Infrastructure - EPP 6: Deepening e-Government1,100.061,000Nationwide Work In Progress 
7.0Communications Content and Infrastructure - EPP 7: Ensuring broadband for all1,691.745,468Nationwide Work In Progress 
8.0Communications Content and Infrastructure - EPP 8: Extending reach2,406.542,090Nationwide Work In Progress 
9.0Communications Content and Infrastructure - EPP 9: Offering a smart network847.671,950Nationwide Work In Progress 
10.0Communications Content and Infrastructure - EPP 10: Extending the regional network2,289.781,220International Work In Progress 
11.0Communications Content and Infrastructure - EPP 11: Track and trace183.22384Nationwide Work In Progress 

Business Opportunities

Beyond the EPPs, the CCI sector will grow through the domestic growth of existing companies as well as through Malaysian ownership of foreign companies. Broadly, growth will be pursued along four fronts: fxed service, mobile services, courier, post and broadcast, and regional operations. The forecasts for fxed services and mobile services are shown in the Exhibit 13-15. These business opportunities will provide RM11.7 billion in incremental GNI and create 17,265 new jobs by 2020.

Business Opportunity 1: Fixed Services

Growth from fxed services will come primarily from fxed broadband and data lines. Fixed broadband subscribers will grow by 10.5 percent compound annual growth rate (CAGR), as existing fxed line users take advantage of bundled packages. Services such as IPTV and online gaming and music will drive much of this increased uptake. Fixed data lines will grow by 2.6 percent CAGR as more companies require their own internal networks. This opportunity will contribute RM1.7 billion in incremental GNI and create 3,250 new jobs by 2020.

Business Opportunity 2: Mobile Services

Mobile services will see subscription growth in all segments: voice, data and broadband. Voice lines will grow by 2.7 percent CAGR driven by both the growing population and increasing tendency of subscribers to have multiple mobile accounts. Mobile data, which includes SMS, content and services that do not require an Internet connection, will grow in line with subscriber growth.

Lastly, mobile broadband subscribers will grow rapidly by 10.5 percent CAGR as 3G users begin to access the Internet, more advanced devices induce Malaysians to use their phones as their primary means of Internet access and lower costs allow mobile Internet access to become more widespread. This opportunity will contribute RM3.6 billion in incremental GNI and create 5,788 new jobs by 2020.

Business Opportunity 3: Courier, Post and Broadcast

Courier, post and broadcast sector's GNI contribution will grow by 5.2 percent annually over the next ten years.

The courier and post sector will offer a broader range of services such as commercial transaction fulflment, warehousing, inventory management, demand planning for manufacturers and assembly services. A multi- tiered licensing system prepared by SKMM will impose higher requirements for top tier license holders and will encourage consolidation, raising the capacity of the sector to invest.

Furthermore, the post and courier sector has an opportunity to capitalise on the expected growth in electronic commerce and offer services specifcally designed to meet the needs of merchants. Further opportunities exist in expansion in regional logistics, subject to obtaining freight forwarding licenses, as well as in competing internally on quality and performance of service rather than price.

Although paid broadcasting has almost reached a plateau in terms of penetration, new opportunities for the broadcast sector will open up as new services are introduced. Digital terrestrial TV will allow the broadcasting of more channels and will have a positive impact on revenues starting in 2015, when SKMM plans to mandate the switching off of analogue broadcasting.

Additional upside opportunities may come from mobile TV and 3D TV content. The infrastructure for offering these services are generally in place. Solutions are being explored to address content creation for these new channels and overcoming barriers to adoption.

This opportunity will contribute RM1.6 billion in incremental GNI and create 7,563 new jobs by 2020.

Business Opportunity 4: Regional Operations

Malaysian companies in the sector such as Axiata, Maxis and Astro are aggressively pursuing international opportunities in large and fast growing markets such as Indonesia, India and Bangladesh. Currently, these investments account for approximately RM2.5 billion of GNI. By 2020, these investments will generate additional GNI of RM4.8 billion and 664 new jobs, as the Malaysian controlled companies leverage the fast growth of these markets and pursue market share.

2012/03/05
Status:
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