Countries in Southeast Asia (SEA) are at different stages of 5G adoption. The Philippines, Singapore, Thailand and Malaysia, for instance, are fairly mature markets while Indonesia is struggling to see 5G evolve amid tepid demand. Vietnam launched 5G only this year and Cambodia is yet to venture into 5G. A look at their journeys, initiatives, and challenges.
The Philippines
The Philippines was amongst the first markets in the region to launch 5G in June 2019 when Globe Telecom, the largest mobile network operator in the country, collaborated with China’s Huawei Technologies to launch the high speed broadband service. As of March 2024, Globe’s network serves more than 6 million 5G devices. During the first half of 2024, it activated 356 new 5G sites nationwide. However, owing to weak market conditions, Globe is moderating its spending on new 5G sites.
Smart Communications, the Philippine Long Distance Telephone Company’s (PLDT) subsidiary, has also seen its 5G network grow in recent years. Its combined 5G/4G network covers around 97 per cent of the country’s population at present. Initiatives like the launch of eSIM upgrades for physical SIMs and device financing for 5G phones has driven the uptake. Most recently, Smart has decided to venture into affordable budget-friendly 5G phones.
Dito Telecommunity Corporation, which entered the country in 2021, brought with it the Philippines’ first commercial 5G standalone (SA) network. As per Opensignal, Dito outperformed its competitors in terms of 5G availability and download and upload speeds during the first quarter of 2024. Another operator, Now Telecom is expected to launch its 5G services in the country before the close of 2024.
The Philippines government has played a vital role in supporting the growth of 5G. In 2023, the government had issued rules for enabling faster network roll-outs. It is also exploring collaborations with other trade partners like Japan and the US to boost its 5G network infrastructure.
Going forward, the country’s core 5G market is expected to grow at a compound annual growth rate (CAGR) of 5.3 per cent from 2024 to 2030.
Thailand
5G was launched in Thailand in February 2020. AIS was the first to launch 5G services in February 2020, followed by TrueMove H and dtac in March 2020 and 2021 respectively. Supportive government policies have also been instrumental in supporting the service roll-out and adoption.
As of Q1, 2024, AIS is the market leader in terms of 5G video, voice app and gaming experience, 5G download and upload speed, and 5G coverage experience and availability according to Opensignal. With over 10 million subscribers, AIS’s 5G network encompasses 95 per cent of the nation’s population. To offer better services to its customers, AIS, in collaboration with Xiaomi, has worked on the simultaneous use of two SIM cards on 5G SA. It wants to expand this feature to other smartphones.
With the merger of TrueMove H and dtac in 2023, the 5G play of the merged entity – True Corporation – has gone up. At present, True’s 5G service has 11 million users covering over 90 per cent of the country’s population.
Going forward, 5G is expected to drive revenue gains for both telcos. Both telcos are focusing on bundling 5G handsets with attractive packages, as well as 5G-supported content to enhance user experience.
Singapore
5G services were launched in Singapore in May 2021 and since then, the market has come a long way. State-owned Singtel joined hands with Ericsson to achieve Singapore-wide 5G SA coverage in 2022, the first globally. Recently, in February 2024, Singtel announced the world’s first live implementation of app-based network slicing to improve user experience. It has also ventured into 5G security-as-a-slice to prevent cyber threats.
StarHub and M1 have also crossed the milestone of more than 99 per cent coverage for their 5G network in Singapore. To enhance its 5G offerings, M1 is collaborating with Ericsson to deploy the world’s first live combined IP and microwave network with advanced AI and machine learning (ML) capabilities.
Going forward, analysts at GlobalData Telecom expect 5G service subscriptions to hold the lion’s share (88 per cent) of the country’s total mobile subscriptions by 2028 end, up from 20 per cent currently. The mounting need for high speed data services, the recent closure of 3G networks, promotional plans and the rising accessibility of 5G services are likely to propel this growth.
Indonesia
Telkomsel was the first Indonesian operator to launch commercial 5G services in May 2021. It now deploys 5G at over 1,000 sites across 56 cities and districts. To boost its 5G coverage, Telkomsel announced the extension of its “Hyper 5G” network. It has also launched Indonesia’s first 5G SA network for digitalisation of seaports.
The network spread of other players like XL Axiata and Indosat Ooredoo is still limited. Early this year, XL Axiata launched 5G technology in four key cities in Java. Indosat Ooredoo is currently more focused on its 4G services although it launched 5G technology in eight cities recently.
Despite a headstart, Indonesia is not a very advanced 5G market due to the unavailability of key 5G spectrum bands. To meet the demand for spectrum, Indonesia’s Ministry of Communication and Informatics plans to auction spectrum in the 700 MHz and 26 GHz frequency bands in the near future. In addition, the government’s 2045 Digital Indonesia Vision will promote 5G proliferation. According to a study, by 2031, Indonesia is likely to have approximately 300 million 5G mobile and fixed broadband subscribers owing to growing smartphone penetration and 5G availability.
Malaysia
5G services were launched in Malaysia in December 2021. As of April 2024, Malaysia’s 5G penetration stood at 35.4 per cent, owing to various government initiatives such as the National Fiberisation and Connectivity Plan, the MyDIGITAL – Malaysia Digital Economy Blueprint and the establishment of Digital Nasional Berhad (DNB). DNB is a special purpose vehicle of the Malaysian government and is responsible for initiating a single nationwide wholesale network (SWN) for 5G coverage.
Operators such as Yes, Celcom, Digi, Unifi (Telekom Malaysia), U Mobile, and Maxis are all operating 5G networks. As of April 2024, DNB’s 5G network has an 81.5 per cent coverage in populated areas with an adoption rate of 39.2 per cent. By the year end, the government plans to augment countrywide rural 5G coverage to about 85 per cent.
Vietnam
After three years of pilot runs, Vietnam’s Ministry of Information and Communications (MIC) opened the bidding process for 5G spectrum sale in March 2024. The 5G spectrum is being made available in 2500-2600 MHz band for the next 15 years, in line with Vietnam’s Digital Infrastructure Master Plan for the period 2021-30. Further, MIC has officially revealed its road map to switch off 2G mobile services by September 2026.
All five telecom operators possess adequate infrastructure to support 5G roll-out. Viettel and VNPT have secured the rights to utilise B1 and C2 bands respectively whereas MobiFone acquired the right to use C3 band.
That said, Vietnam is facing a few teething troubles as far as 5G take-off is concerned, mainly due to the scarcity of devices compatible with 5G technology.
The way forward
5G roll-out is progressing steadily but unevenly across the SEA region. Singapore, Thailand and Malaysia are leading the charge with aggressive infrastructure development and competitive pricing. The remaining regional markets are expected to catch up soon. As per Ericsson’s estimates, SEA’s and Oceania’s 5G subscriptions will increase ten-fold from 61 million in 2023 to 560 million by 2029, indicating SEA’s significant role in the global 5G ecosystem.
