kuala lumpur: The partnership between Persatuan Penyedia Infrastruktur Telekomunikasi Malaysia (PPIT) and Indonesia’s Asosasi Pengembang Infrastruktur dan Menara Telekomunikasi (ASPIMTEL) is an important step in addressing the digital infrastructure bottlenecks being experienced in both markets. BMI said.
Fitch Solutions said the two associations, which represent telecommunications infrastructure providers, have signed a memorandum of understanding to strengthen cooperation between the two markets with the aim of “densifying 4G digital infrastructure and new 5G networks”. Stated.
“The recent cooperation between Malaysia’s PPIT and Indonesia’s ASPIMTEL could accelerate the development of new 5G infrastructure in both countries.
“We have previously noted a temporary and weak capex outlook for new 5G deployments in Indonesia, with domestic mobile network operators (MNOs) “We are requesting an incentive scheme from the telecommunications regulators of the world,” the company said in an industry trend analysis report. .
The report said operators face high deployment costs in Indonesia due to the complex geography and lack of the latest generation of 5G semiconductors. This partnership could provide a much-needed boost and alleviate these challenges.
Both Malaysian and Indonesian MNOs are eyeing 5G as a way to boost sluggish ARPU numbers.
“However, this partnership is focused on upgrading and expanding 4G infrastructure, with 296 million subscribers expected in Indonesia and 37.4 million in Malaysia by 2025, which could result in an obsession with 4G technology. It’s sexual,” he added.
BMI believes that the partnership’s focus on infrastructure could lead to lower final prices for 5G packages for consumers, leading to higher adoption rates.
“However, significant price reductions are not expected as 5G is seen as a means to boost average revenue per user (ARPU) numbers for carriers.
“Furthermore, beyond affordability issues, 5G deployment may be limited to some extent to urban centers where tech-savvy consumers demand high-speed connections that support low-latency applications such as gaming and streaming. It is expected,” he added.
BMI predicts that by 2032, Malaysia will have approximately 34 million 5G subscribers and Indonesia will have approximately 197.2 million 5G subscribers, accounting for 59.4 percent and 54.4 percent of the total mobile subscribers, respectively.
These numbers suggest a healthy average annual growth rate of 31.3% for Malaysia and 39.4% for Indonesia from 2023 to 2032.
