Market Scenario 

Malaysia Telecom Tower Infrastructure Market was valued at US$ 46.61 million in 2023 and is projected to hit the market valuation of US$ 101.65 million by 2029 at a CAGR of 14.04% during the forecast period 2024–2029.

In Malaysia, the market for telecom towers is growing quickly because people are asking to use more mobile data and 5G networks continue being built. There were about 43,612 of these towers in Malaysia at the close of Q3 2023, with estimates suggesting that number will be closer to 44,710 by 2025. The Jendela program has also helped drive this growth through investments and other support such as building full-fiber networks to homes, businesses and government buildings across all parts of the country up until now not covered by fixed-line broadband services – aiming for 98% population coverage come year-end 2025 while also seeking out ways on how best provide each citizen access internet service which should be fast enough do whatever they want online regardless where it is done inside Malaysia.

Some of the top players in Malaysia telecom tower infrastructure market include Edotco (infrastructure arm under Axiata Group) and EdgePoint Systems (second largest independent towerco). Edotco manages over 20,000 tower sites domestically making them one third bigger than its nearest competitor who only controls around 6,000 locations here but still has more globally; altogether taking care over 58,000 towers internationally among nine countries like Cambodia Bangladesh Sri Lanka etc… Meanwhile EdgePoints operates fifteen hundred locally representing just over fourteen thousand total across Malaysia Indonesia Philippines Vietnam Thailand Myanmar Laos Brunei Cambodia Singapore … among others basically all ASEAN member states excepting smaller ones such as East Timor Papua New Guinea &c.

Ownership within sector remains fragmented too: Maxis DiGi Celcom U Mobile TM are main telcos with competing infrastructure while thirteen state-backed telecommunication companies cover most regions leaving few areas open for private tower companies. Investment funds value telecommunications assets highly including submarine cables fiber infrastructure data centers mobile towers etc. which should help attract new investment into Malaysian industry especially those related towards promoting broadband connectivity nationwide. There may be some consolidation amongst small ISPs looking achieve scale alongside supporting larger operators like Telekom Malaysia Maxis Axiata Digi et cetera.

The Malaysian Telecom Tower infrastructure Market is expected to grow as technology advances and government initiatives are implemented. Currently, 61% of the country has 5G coverage which will only increase in the future with the current rate of development. The nation’s fiber optic network is also looking good for growth, set to cover more than 8 million homes by 2023. More than 97% of Malaysians have access to 4G with two thirds having average speeds above the recommended 100Mbps; this puts us in a strong position when it comes to meeting demand for faster connections going forward.

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Market Dynamics

Driver: Technological Advancements Driving Malaysia's Telecom Tower Market

The growth of Malaysia's telecom tower infrastructure market is driven by technological advancements such as 5G and Fibre to the Home (FTTH). The implementation of 5G networks requires a more dense and robust telecoms tower infrastructure capable of handling higher data volumes as well as providing reliable connectivity throughout wider areas. Currently, about 61% of the country has been covered by 5G since last year alone with this figure expected to rise significantly in line with its commitment towards adopting next-generation mobile technology.

Malaysia’s FTTH initiatives have also been making great strides alongside 5G. By 2023, it is estimated that the FTTH footprint will exceed 8 million premises thereby allowing large portions of Malaysian society access high-speed internet service. This expansion is necessary due to an increased need for bandwidth-intensive applications like video streaming, gaming online or even telecommuting. Aside from just improving speeds though, upgraded fiber optic cables guarantee consistent connections which are equally important in both urban and rural settings.

Edotco and EdgePoint are some key players behind this growth in telecoms tower infrastructure across Malaysia telecom tower infrastructure market. Edotco is responsible for managing approximately 20,092 towers across different parts of Malaysia during Q3/2023 which makes them an important enabler when it comes to extending coverage areas so as to support these new technologies being rolled out. Equally important would-be EdgePoints’ contribution through their provision over14,000 towers located strategically within Malaysia alone together with another 1,500 spread throughout Indonesia as well as Philippines thus ensuring enough physical sites whereupon equipment can be hosted while still maintaining seamless connectivity especially at radio frequency level required by both systems mentioned above.

In order to foster complete fiberization coupled with universal coverage for 4G long term evolution plus 5G mobile networks. Government initiatives under Jendela program further enhance such developments within telecom tower infrastructure market too through establishment of full-fledged-fibre optic connections across all areas with comprehensive 4G LTE Advanced Pro & 5G NR coverage. The main objective here is to achieve 98% population penetration rate by year 2025 i.e., ensuring that necessary infrastructures are put in place so as support increased data transmissions associated with these advancements.

Trend: 5G Rollout and Expansion in Malaysia's Telecom Tower Infrastructure

The implementation and expansion of 5G networks in Malaysia telecom tower infrastructure market is the backbone of development for the country’s telecommunications infrastructure. This move is influenced by increasing data requirements as well as facilitating new technologies and applications. Malaysia had a 5G coverage of 61% as at 2023; this number is anticipated to grow rapidly over time positioning it as one among the top adopters of this technology within South-East Asia. Deploying a denser network of telecom towers will be necessary if full coverage and best performance are to be achieved with 5G. In Q3 2021, there were about 43,612(roughly) telecom towers in Malaysia.

Malaysia’s high usage of mobile data is one reason why 5G is needed. The monthly download rate per user in this country is among the highest in the world. Besides, the price for a gigabyte has been halved so that people can afford it more easily. This increased availability of affordable internet might require faster connections which means the network should expand to cover all over Malaysia with 5G. The launch of 5G is also supported by government programs like Jendela program – an initiative designed not only to ensure that every Malaysian gets at least 4mbps by 2020 but also laying foundations for seamless integration into sixth generation wireless technology across whole nation within this decade. It also plans on making full-fibre connection available up till doorstep or office desk (98% population coverage by 2025).

Challenge: The telecom tower market in Malaysia is Relatively Fragmented

The telecom tower infrastructure market in Malaysia is characterized by significant fragmentation, presenting a unique set of challenges and competitive pressures. This market landscape is primarily dominated by state-backed telecommunications infrastructure companies and mobile operators, resulting in a diverse yet disjointed industry structure.

One of the primary implications of this fragmentation is the heightened competitive pressure among market players. With multiple entities vying for market share, the competition becomes fierce, driving companies to continuously innovate and improve their service offerings. However, this relentless competition can also lead to price wars, reducing profit margins and potentially stifling long-term investment in infrastructure improvements. Moreover, the dominance of state-backed companies adds another layer of complexity. These entities often benefit from preferential treatment, access to resources, and regulatory support, which can create an uneven playing field. Private operators in the Malaysia telecom tower infrastructure market may find it challenging to compete on equal terms, leading to potential market imbalances and inefficiencies.

Another significant challenge arising from market fragmentation is the difficulty in achieving market consolidation. Consolidation is often seen as a pathway to increased efficiency, reduced operational costs, and improved service delivery. However, in a fragmented market with numerous stakeholders, achieving consolidation becomes a formidable task. Issues such as differing business models, regulatory hurdles, and resistance from existing players can impede efforts to streamline the market. Additionally, market fragmentation can hinder the efficient allocation of resources. In a fragmented market, infrastructure investments may be duplicated, leading to inefficiencies and increased costs. For example, multiple operators might build separate towers in close proximity to each other, rather than sharing infrastructure, resulting in redundancies and wasted capital.

Segmental Analysis

By Installations

Based on installations, the ground-based segment is leading the telecom tower infrastructure market with over 64.80% market share. Ground-based telecom towers in Malaysia dominate due to their cost efficiency and extensive coverage capabilities. Constructing a ground-based tower costs approximately RM300,000, making it a more attractive option for telecom companies compared to the higher expenses associated with rooftop installations. These towers can serve nearly 2,000 mobile subscribers each, providing robust coverage and capacity to meet the growing demand for mobile connectivity. Additionally, the Malaysian government's Jendela initiative, aiming for 100% 4G coverage by 2025, further encourages the deployment of ground-based towers, enhancing network infrastructure nationwide.

The preference for ground-based towers in the country’s telecom tower infrastructure market is also influenced by regulatory and market dynamics. Local authorities, like DBKL in Kuala Lumpur, impose fewer restrictions on land use for ground-based towers than rooftop installations, which require more coordination and compliance with safety regulations. Many telecom tower companies, such as edotco, which owns around 4,000 towers, favor ground-based installations due to their scalability and ease of management. This competitive market landscape, with major players like YTL, Maxis, and DiGi, drives significant investment in ground-based infrastructure to improve coverage and service quality.

Technological advancements and economic considerations further solidify the dominance of ground-based towers. These towers are better suited for the deployment of 5G technology, requiring robust and extensive infrastructure. The telecom sector's significant economic contribution, growing at a CAGR of 2.84% and projected to reach USD 32.75 billion by 2029, underscores the importance of ground-based towers. Their strategic placement in urban and rural areas ensures comprehensive network coverage, operational efficiency, and minimal downtime, making them indispensable for maintaining reliable and competitive telecom services in Malaysia.

By Tower Type

When it comes to tower type, the mobile cell tower emerged as a dominant force in the telecom tower infrastructure market by generating more than 35.11% market share. Malaysia's preference for mobile cell towers, particularly monopole towers, over guyed and lattice towers is driven by several key factors. Urbanization and space constraints in densely populated areas necessitate infrastructure that occupies minimal land. Monopole towers, with their smaller footprint and aesthetic appeal, fit seamlessly into urban landscapes, making them ideal where visual impact is a concern. Additionally, the ease and speed of installing and maintaining these towers are critical in rapidly expanding urban environments, where the demand for mobile connectivity is ever-increasing.

Cost-effectiveness plays a significant role in this dominance. Despite higher initial manufacturing and installation costs, monopole towers' minimal land use and efficient deployment make them more economical in urban settings where land prices are high. Regulatory and zoning laws in Malaysia telecom tower infrastructure market favor monopole towers due to their lower visual and environmental impact. Technological advancements, particularly the shift to 5G, further boost their prominence as these towers support the dense network of small cells required for advanced telecommunications.

Environmental considerations and scalability also contribute to the dominance of monopole towers. They have a lower environmental footprint compared to guyed and lattice towers, aligning with Malaysia's sustainability efforts. Their modular design allows for quick upgrades and expansions, ensuring they can meet the growing demand for mobile connectivity. With around 22,682 cellular towers in 2018, a significant proportion being monopole towers, it's clear that these structures are the backbone of Malaysia's telecommunications infrastructure, balancing efficiency, cost, and environmental impact.

By Fuel

Based on fuel, the Malaysia’s telecom tower infrastructure market is led by non-renewable segment with revenue share of over 57.71% to the market. Telecom operators in Malaysia predominantly rely on non-renewable energy sources for their telecom towers due to various practical and economic reasons. The vast and often inaccessible interior regions of Malaysia lack the necessary infrastructure to support renewable energy solutions, making diesel generators and other non-renewable sources more viable. Additionally, the initial financial outlay for renewable infrastructure is significantly higher, which can be prohibitive for operators focusing on expanding their network reach and improving service quality in a highly competitive market. 

Non-renewable energy sources offer a level of dependability and reliability that is crucial for maintaining uninterrupted telecom services. Diesel generators, for instance, provide a consistent power supply, essential for towers that need a stable and high energy output. Moreover, many existing telecom towers are already equipped with these generators, making it cost-effective to continue their use rather than investing in new renewable systems. The Malaysian government's current policies and incentives focus more on network expansion, like the Jalinan Digital Negara (JENDELA) plan, than on mandating renewable energy, allowing operators to prioritize immediate service improvements in telecom tower infrastructure market.

While the environmental benefits of renewable energy are clear, the immediate social and economic benefits of reliable telecom services often outweigh these long-term considerations. The cost-effectiveness, operational efficiency, and technological feasibility of non-renewable sources make them the dominant choice for telecom operators. Despite growing interest in renewable energy, the substantial investment required for its large-scale deployment means that operators are more likely to focus on other areas such as network expansion and technology upgrades. Thus, the current market dynamics and infrastructural realities in Malaysia favor the continued use of non-renewable energy for telecom towers.

By Ownership

In Malaysia, the dominance of operator-owned telecom towers with more than 45.86% market share is evident through a combination of historical, regulatory, and market-driven factors. As of 2023, Malaysia boasted an estimated 43,612 telecom towers. Notably, approximately 64% of these towers are owned by telecom tower companies (towercos), with edotco, the largest towerco, owning around 4,000 towers. In contrast, state-backed and other independent towercos control about 3,200 towers. A significant 42% of the market remains in the hands of mobile network operators such as Maxis, DiGi, Celcom, U Mobile, and Telekom Malaysia, underscoring the substantial influence these operators have on the telecom infrastructure landscape.

The necessity of operator-owned towers in the telecom tower infrastructure market becomes clearer considering Malaysia's unique geography and subscriber density. Each telecom tower serves approximately 2,000 mobile subscribers, which requires extensive infrastructure to maintain adequate coverage and service quality. The market's fragmentation, with numerous state-backed companies owning a portion of the towers, further complicates infrastructure exclusivity and rollout. However, infrastructure sharing has been a pivotal strategy, enabling rapid deployment of base stations, especially in Malaysia's challenging interior regions. Government initiatives like the Jendela project have also significantly boosted telecom tower infrastructure, aiming to enhance connectivity and coverage nationwide.

Historical factors, such as the carve-out of edotco from Celcom, have played a crucial role in shaping the current landscape of the Malaysia’s telecom tower infrastructure market. edotco emerged as the largest towerco following its separation from one of Malaysia's original mobile network operators. Regulatory reforms over the past two decades have further transformed the telecommunications sector, encouraging operators to create and separate infrastructure units. This strategic approach has led to a diverse yet somewhat fragmented market where operator-owned towers thrive, ensuring that mobile network operators maintain substantial control over their network infrastructure.

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 Top Players in Malaysia Telecom Tower Infrastructure Market

• Common Tower Technologies SDN
• Edge Point Towers SDN BHD
• EDOTCO Group Sdn Bhd
• ITMAX System Berhad
• OCK Group Berhad
• OPCOM Holdings Berhad
• PDC Telecommunications Services Sdn Bhd
• Silver Ridge Holdings Bhd
• Tele structure Industries Sdn Bhd
• Telekom Malaysia
• Telesites S.A.B de C.V.
• Teleflow Corp. Sdn Bhd
• YTL Corp. Berhad
• Other Prominent Players

Market Segmentation Overview:

By Tower Type

• Guyed Towers
• Monopole Towers
• Lattice Towers
• Stealth Towers

By Installation

• Rooftop
• Ground Based

By Fuel Type

• Renewable
• Non-Renewable

By Ownership

• Operator Owned
• Joint Venture
• Independent Tower Companies

By Technology

• 2G
• 3G
• 4G
• 5G

By Application

• Mobile Communications
• Broadband and Internet
• Others