15 Dec Malaysia Needs To Boost Telco Infrastructure To Cater For Changing Consumer Habits
Malaysia must step up the development of its mobile telecommunication infrastructure to cater for the rapidly changing consumer habits such as phenomenal growth in video viewing and of mobile data traffic.
Ericsson Head of Marketing for Australia & New Zealand Warren Chaisatien said a better infrastructure is needed as its development is not keeping up with consumer expectations and behaviour, as well as adoption.
He said the overall mobile data is expected to grow nine times, while video 13 times, outpacing data growth and by 2020, with the majority of mobile data traffic would be coming from video.
“Likewise, smartphone is seen as the preferred screen to watch videos, a direct result of the massive penetration — from 60 per cent last year to 70 per cent this year and 88 per cent next year,” he told Bernama.
“This shows that the device penetration is outpacing the infrastructure capability, especially when Malaysians utilise their devices to watch videos anywhere,” said Chaisatien.
“Mobile infrastructure has to catch up to deliver and to satisfy Malaysian consumers rapidly growing digital needs,” he said, adding that Malaysia is still lagging behind Thailand’s well-developed infrastructure.
Chaisatien said mobile providers need to stay on their toes as it has become a much user-driven world as users are dictating what kinds of content they want to consume and how.
He said as the majority of mobile usage occurs indoor, mobile operators need to invest more to enhance coverage within buildings, especially in a place like Kuala Lumpur where urban density is high.
Citing an Ericsson survey, Chaisatien said if a country could increase its broadband penetration by 10 per cent, that could be a one per cent increase in gross domestic product (GDP), which is still a good growth.
He said the study also showed that doubling broadband speed could lead to a 0.3 per cent rise in GDP, a very significant factor in driving not only economic growth, but also social environmental benefits to gain momentum in going forward.
Asserting that infrastructure is a catalyst for socioeconomic development, Chaisatien said under Budget 2016, Prime Minister Datuk Seri Najib Tun Razak announced that the Malaysian Communications and Multimedia Commission would be allocated RM1.2 billion to improve the country’s telecommunication infrastructure.
These include rural broadband projects which will see a four-fold increase in Internet speed from 5Mbps (megabits per second) to 20Mbps, a National Fibre Backbone Infrastructure, high-speed broadband, and undersea cable systems.
As Malaysian consumers are savvy in terms of device adoption, ownership, multiple screen usage, use of videos and social media, service providers need to demonstrate in order to keep the consumers satisfied.
“Service providers need to ensure that the services and infrastructure that they are investing in will be able to lift the game for the overall good of businesses as Malaysia moves towards the 2020 goal of a developed nation,” said Chaisatien.
Source: Malaysian Digest