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'LTE blitzkrieg' will more than quadruple 4G smartphones in Malaysia, says IDC

AvantiKumar | April 2, 2013
IDC Asia/Pacific's new quarterly tracker expects more than 400% growth in Malaysia in 2013.

Ryan Lai, Associate Market Analyst, Client Devices, IDC AsiaPacific modified

Photo - Ryan Lai, Associate Market Analyst, Client Devices, IDC AsiaPacific.


Analyst firm IDC's latest Asia/Pacific Quarterly Mobile Phone Tracker expects a growth of more than 400 percent in shipments of 4G-capable smartphones in Malaysia in 2013.

IDC Asia/Pacific's associate market analyst for mobile phone and tablet research, Ryan Lai, said that earlier this year, Maxis became the first operator in Malaysia to launch LTE (long term evolution) (4G) services, which it claims is capable of providing up to five to 10 times faster download speeds than its 3G data services, while other operators such as Celcom and DiGi have announced their intentions to rollout LTE plans in 2013.

Lai said IDC therefore expects competition in the 4G space to intensify and demand for LTE-enabled smartphones to significantly increase towards the second half of 2013, when LTE networks from all three major mobile operators are expected to be up and running.

"Rapid deployment of LTE networks in other markets meant that vendors such as Nokia and Apple chose to include 4G connectivity as a standard feature for their flagship handsets," he said. "This resulted in Malaysian consumers having access to LTE-enabled handsets - which represented five percent of total smartphone shipments in 2012 - even though LTE data services were unavailable."

"Among the 4G-enabled handsets shipped to Malaysia in 2012, more than 80 percent were iPhone 5s. Maxis did not charge a premium for 4G services over 3G so if the iPhone 5 were to be compatible with Malaysia's LTE spectrum, 4G adoption would be significantly higher," he said. "One of its main challenges is Malaysia's 2,600 Mhz LTE spectrum, which is not compatible with Apple's iPhone 5."

"LTE in Malaysia is in its infancy," he said. "At the beginning of the year, device selection was limited, coverage areas were sparse and Maxis wasn't aggressively marketing the service. Come the second half of 2013, things are expected to pick up as more operators and devices will enter the picture and an LTE marketing blitzkrieg is expected as operators look to recuperate capital expenditure spent in building their 4G networks."

Lai addded that Celcom and DiGi were expected to launch 4G data services later this year and LTE connectivity would increasingly become a hygiene factor among premium smartphones. "[Therefore] IDC forecasts that shipments of LTE-enabled handsets will account for 21 percent of total smartphone volume. In recent months, BlackBerry, HTC and Sony have unveiled flagship handsets that come standard with LTE, while a LTE variant of Samsung's Galaxy S IV is set to hit Malaysian shores sometime this year, suggesting a significant surge in LTE-enabled handsets for 2013."


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