Malaysia's WiMAX operators make their mark in broadband market

MELBOURNE, AUSTRALIA: Malaysia’s aggressive WiMAX operators – P1 4G and Yes – are shaking up Malaysia’s broadband market. These operators offer valuable insights for the rest of Asia about how WiMAX operators can be strong broadband competitors, according to a new report* from research firm Ovum.

“Incumbent TM's slow ADSL service is under pressure from P1 4G's cheap, high-speed WiMAX service and from Yes' new pay-per-use and postpaid WiMAX tariffs,” says Senior Analyst Nicole McCormick, the report’s author.

In contrast, mobile operators don't yet see the WiMAX operators as threats.

“However, P1 4G and Yes have rolled out extensive networks and if these operators fulfill their growth projections they could emerge as serious high-speed broadband players,” says McCormick.

“We wonder how long the mobile broadband players will allow WiMAX operators to capture low to middle end subscribers who might have otherwise have purchased a big-screen mobile broadband service. The answer ultimately depends on how successful the WiMAX players are.”

Meanwhile, TM and mobile operator Maxis are the first to enter the market for the critical first-phase 1.3 million homes that will be connected to the fiber-based HSBB network by the end of 2012.

“Whoever wins the lion's share of these key lucrative homes will have a major advantage over their fiber rivals,” says McCormick.

She expects Maxis and sister firm DTH operator Astro to eventually come together and offer a compelling HSBB content play. “If that happens, TM could come off second best to a Maxis-Astro combine,” adds McCormick.