Abstract Bullets:
• Malaysian telcos recorded regular efficiency within the enterprise phase in 2022.
• They began the yr robust with a number of industrial collaborations, however there are nonetheless large market alternatives for them to seize.
Malaysian telcos had robust momentum final yr in constructing their vertical capabilities and enterprise 5G options. This consists of TM ONE in sensible cities and manufacturing sectors, CelcomDigi in healthcare and logistics, and Maxis’ 5G Alliance. For extra, please see the 2022 quarterly updates at: Malaysia Enterprise Telecom Update Q1 2022: Wider Industry Collaborations Despite Stagnant Growth in 2021 April 13, 2022; Malaysia Enterprise Telecom Update Q2 2022 – Mixed Developments but Positive Overall Progress August 11, 2022; Malaysia Enterprise Telecom Update Q3 2022 – Slower Development but Steady Performance October 31, 2022; and Malaysia Enterprise Telecom Update Q4 2022 – Stronger Vertical Play, Wider Enterprise 5G Development January 5, 2023. This report analyzes Malaysian telcos initaitives within the enterprise phase in Q1 2023 in addition to their 2022 monetary yr enterprise efficiency within the phase.
CelcomDigi: CelcomDigi reported its first monetary outcomes for This fall 2022. The provider reported robust progress of enterprise income by 15.1% year-on-year (YoY) in 2022, reflecting varied initiatives by Celcom and Digi within the earlier yr. Nevertheless, the enterprise phase continues to be comparatively small, accounting for under lower than 5% of its complete income. However, with the enterprise phase outlined as certainly one of its key priorities in 2023. CelcomDigi began its enterprise marketing campaign robust with already varied initiatives in Q1 2023. This consists of the launch of its new enterprise model known as CelcomDigi Enterprise, combining capabilities from Celcom and Digi (for extra, please see CelcomDigi Business – High Potential, but Still With Major Capability Gaps and Unclear Propositions April 17, 2023). The provider has additionally partnered with SK Telecom to develop a metaverse platform and has collaborated with main vertical gamers comparable to Langkawi Port (transportation) and MBSB (BFSI) to co-develop industrial options. It additionally continued to drive its thoughts share available in the market by occasions comparable to Enterprise Tech Week 2023.
Maxis: After a sluggish 2021 (solely 0.4% YoY progress), Maxis recorded a stable 8.8% YoY progress in its enterprise income in 2022. Its income has elevated to MYR1.42 billion ($323 million), almost half of the market chief, TM One’s enterprise income. Maxis’ 2022 enterprise enterprise was pushed by mounted & options and cellular providers with YoY growths of 13.5% and 5.3% respectively. The enterprise phase will proceed to be Maxis’ main focus because the provider continued to strengthen its ecosystem by 5G (e.g., 5G Alliance) and a latest partnership with vertical gamers (e.g., Mardi on sensible agriculture options).
Time dotCom (Time): Time’s focus is basically on the consumer-fixed broadband market. It’s increasing its enterprise ICT capabilities however with a extra conservative technique in comparison with different telcos. In 2022, Time reported a 5% YoY improve in enterprise income, considerably decrease than its 26% YoY progress within the earlier yr. Time had just a few initiatives to boost its ICT capabilities in 2022, and there’s a lack of business collaborations up to now. There are additionally gaps in its total portfolio in comparison with main gamers.
TM One: TM One noticed a stagnant enterprise income in 2022 of MYR3.3 billion ($760 million) with solely a 0.5% YoY improve. However, the efficiency was considerably higher than the 4.1% YoY decline within the earlier yr. In 2022, the provider reported 4.8% YoY greater income in ICT options. Nevertheless, the general progress was offset by the decline in conventional knowledge and voice providers. This development is widespread for an incumbent like Telekom Malaysia (TM) with a significant share in company WAN providers, because the market is shifting from pure connectivity providers to outcome-based options. There may be additionally rising competitors from cellular gamers comparable to CelcomDigi and Maxis to seize much more market shares of enterprise WAN and ICT options. In 2023, the enterprise phase which made up 28% of the corporate income, stays a key precedence for TM to drive its total enterprise. TM One continued its momentum within the first quarter with a number of initiatives together with a partnership with ZTE to construct a hybrid cloud 5G core community and a few collaborations with training gamers (USIM and Al-QUDS College).
Conclusion:
Because the connectivity market matures, the enterprise phase will proceed to be a key space for telcos to drive their total enterprise. Malaysian telcos have been constructing their enterprise capabilities past the connectivity area and began seeing the outcomes, with every participant recording a mid-to-high single-digit YoY progress in 2022. Nevertheless, whereas Malaysian telcos have launched into their telco-techco transformation journeys, there’s nonetheless a good distance for them in strengthening their market positions in opposition to conventional telco and IT suppliers in addition to new rivals. There may be additionally nonetheless an enormous alternative within the enterprise ICT service for the Malaysian telcos to seize because the market is anticipated to develop at 18% CAGR from $6.2 billion in 2022 to $12 billion in 2026 (for extra, please see ASEAN ICT Service Market to Double in the Next Four Years – Where are the Opportunities for Telcos? March 14, 2023).