Strategy Analytics Releases Multiplay Market Dynamics Service Report

Strategy Analytics reportedly has released a new Multiplay Market Dynamics service report, titled “Malaysia Sees First Commercial WiMax: Bellwether for Developing World?”

 

The report sees the launch of Malaysia WiMax as sign of brighter prospects for the developing world if it succeeds. The report also studies the role that a commercial WiMax service might play in meeting Malaysia’s ambitious broadband penetration goal of 75 percent of households by 2010.

 

Strategy Analytics focuses on market opportunities and disruptive forces in the areas of Automotive Electronics and Entertainment, Broadband Connected Home, Mobile and Wireless Intelligent Systems Implementation Strategies and High Frequency Market intelligence.

 

According to surveys, Kuala Lumpur, the Malaysian capital, trails Hungary’s 13.6 percent with 11.8 percent in Broadband Subscriptions per 100 inhabitants. Greece, with 9.1 percent, East Malaysia with 2.5 percent, and Ecuador with 2.4 percent follows them. The report says that the penetration rate in the capital city is way higher than the rest of Malaysia.

 

“There’s a real digital divide in Malaysia,” said Tom Elliott, Vice President of Applied Analytics and author of the report. “Kuala Lumpur has a connectivity rate comparable to some OECD countries, but the outlying areas are a different story. If WiMax succeeds in the smaller cities and in rural areas, it will help make the WiMax case in emerging markets.”

 

The Malaysian government believes near-universal broadband connectivity is critical to achieving developed country status by 2020, and looks to WiMax service, which was commercially launched last month, to help reach this goal.

 

There will be challenges for WiMax in Malaysia, notes Ben Piper, director of the Multiplay Market Dynamics service. “Telekom Malaysia, the former PTT, has a near-monopoly in consumer wireline broadband, and has the financial resources to be a fierce competitor.”

 

Some Malaysian analysts have expressed regret on the delay of the rollout of high-speed wireless Internet services in the country. The government explained that this delay was necessary for the four WiMax license holders to build a stable infrastructure.