From scaling 5G networks and expanding fibre connectivity to accelerating data centre investments and tightening cybersecurity frameworks, there were several defining moments for the telecom industry in Southeast Asia (SEA) in 2025. A look at the key developments that shaped the region’s telecom and digital infrastructure trajectory through the year…
5G expansion and upgrades
5G roll-out and upgrades accelerated across SEA in 2025, with emerging markets moving into active deployment focusing on network quality and enterprise readiness. For instance, Cambodia entered active roll-out mode as Cellcard, Metfone and Smart launched 5G services in Phnom Penh and other areas. Brunei reported 5G access across over 90 per cent of populated areas by mid-year. Laos widened trial activity beyond Vientiane, while Myanmar saw only limited 5G expansion during the year.
In Vietnam, MobiFone launched 5G services in 2025 after earlier roll-outs by Viettel and VNPT, creating a three-operator 5G landscape and strengthening nationwide momentum. Malaysia’s 5G approach continued evolving with the government advancing plans for a dual 5G model after the wholesale roll-out via Digital Nasional Berhad (DNB), and inviting proposals for a second 5G network. CelcomDigi, Maxis, Telekom Malaysia and U Mobile submitted bids, reflecting efforts to accelerate roll-out and strengthen competition.
Singapore maintained a focus on standalone 5G upgrades, spectrum refarming and enterprise outcomes following the earlier 3G shutdown. Thailand’s AIS and True-DTAC expanded coverage and capacity, with discourse increasingly shifting towards 5.5G and 5G-Advanced. However, Indonesia continued 5G expansion at a slower pace due to spectrum constraints, though Telkomsel and Indosat undertook deployments. Several markets including Singapore, Indonesia and Vietnam also advanced early work on 6G road maps and coordination frameworks.
Infrastructure strengthening
There was also heightened activity in the region to strengthen fibre, satellite broadband and submarine infrastructure to improve resilience, redundancy and long-term capacity. Fibre upgrades continued across multiple countries, with Brunei sustaining strong fibre penetration and expansion, while Indonesia and the Philippines advanced backbone and metro fibre projects. However, last-mile roll-out remained uneven due to high deployment costs and complex island geographies.
Satellite broadband gained sharper relevance in bridging coverage gaps, particularly in remote and underserved areas. There was an expansion of low earth orbit (LEO) systems across the region. Starlink strengthened activity in Indonesia to provide connectivity to island and remote communities. Malaysia also explored satellite connectivity partnerships, reflecting growing interest in space-based broadband as a complementary layer to terrestrial networks.
The Philippines showed strong momentum in satellite-linked connectivity. Globe Telecom partnered to resell Starlink’s direct-to-consumer services, while Smart tested satellite-to-mobile technology with Lynk Global, highlighting early movement towards direct-to-device models that could enable basic messaging and limited services without terrestrial network coverage.
Submarine cables remained a key focus area through the year. Singapore retained its position as SEA’s primary subsea hub, supported by about 26 active undersea cables and continued capacity planning. Construction advanced on the Asia Link Cable (ALC), connecting Singapore with the Philippines, Brunei and Hong Kong. Malaysia announced multiple new subsea cable landings to strengthen redundancy, while Thailand made progress on additional routes to improve resilience and international bandwidth options. Vietnam’s subsea strategy stood out as well, shaped by repeated cable disruptions in earlier years. The country advanced plans to add new international cable systems through 2030 to diversify routes and improve stability. Across the wider region, additions around systems including ADC, SJC2, Bifrost, Echo and Japan-SEA I-AM reinforced submarine infrastructure as a critical foundation supporting cloud expansion and AI-era bandwidth growth.
Doubling down on data centres
Data centres remained one of the fastest growing digital infrastructure segments in SEA during 2025, driven by cloud adoption, enterprise digitalisation, content growth and accelerating AI compute demand. Singapore, Malaysia, Indonesia and the Philippines continued attracting investment, though sustainability and energy planning increasingly became decisive factors shaping expansion.
Singapore continued to anchor the region’s data centre ecosystem. Singtel began building a 58 MW AI-ready data centre designed for high-density workloads such as AI model training. Cross-border digital infrastructure alignment also strengthened, as Singtel partnered with Telekom Malaysia to build a 64 MW hyperscale facility in Malaysia. Malaysia further strengthened its position as a major investment hotspot, supported by infrastructure readiness and investor momentum. Hyperscalers such as AWS and Google continued to advance their local infrastructure and cloud ambitions. Indonesia also expanded data centre development around Jakarta, driven by market scale and rising enterprise demand.
Sustainability emerged as the defining constraint for expansion. High electricity and water requirements increased scrutiny around approvals, energy sourcing and efficiency. Indonesia recorded activity around greener builds, including solar-powered approaches. Microsoft’s planned Indonesian facilities also undertook sustainability measures including using biofuels for backup power and water-based cooling. Policy alignment became increasingly visible alongside expansion. Singapore strengthened direction through its Green Data Centre Roadmap while Malaysia introduced energy efficiency codes and standards.
Rising AI adoption
AI adoption in SEA’s telecom sector increased in 2025, with operators deploying it across network monitoring, predictive maintenance, customer service automation and fraud detection. The focus was largely on improving efficiency and service performance as traffic volumes rise and cost pressures persist. Thailand’s AIS emerged as one of the most visible examples, integrating AI across large parts of its infrastructure to reduce energy consumption and strengthen operational control while also expanding AI-driven customer engagement tools such as digital assistants. Other major operators including Singtel and Telkom also advanced AI usage for service assurance, fault detection and network optimisation.
Evolving market structure
Market structures continued evolving in 2025 through consolidation, cross-sector restructuring and infrastructure monetisation. Thailand remained the clearest
example of consolidation enabling improved market discipline. The True-DTAC merger delivered cost synergies and stronger financial performance, with the company announcing its first post-merger dividend, while AIS benefited from a more stable competitive environment and continued prioritisation of efficiency and innovation. In contrast, Malaysia and the Philippines remained more competitive markets. Malaysia continued facing pricing pressure with Yes 5G influencing dynamics. In the Philippines, Globe and Smart retained dominance, while DITO maintained competitive intensity through expansion and promotions.
Singapore also saw renewed merger speculation around StarHub and M1 following the deferral of spectrum payments into mid-2025, although no deal materialised. Thailand recorded another major restructuring as Intouch, the parent of AIS, merged with Gulf Energy, reflecting increasing alignment between telecom and power infrastructure.
Infrastructure monetisation remained a key financial lever through the year. In the Philippines, two Macquarie-backed tower companies merged to create a portfolio exceeding 3,300 towers, followed by reports exploring a stake sale. PLDT continued tower monetisation to strengthen its balance sheet, while Singtel identified additional assets for potential monetisation to support shareholder returns.
Cybersecurity and data governance
Cybersecurity and data governance gained greater prominence across SEA in 2025 as scams, fraud and broader digital abuse risks increased alongside rising digital adoption. Several markets advanced policy frameworks around personal data protection, cross-border data flows and enforcement mechanisms. Cambodia released a draft personal data protection law, while Vietnam approved a personal data protection law during 2025, scheduled to take effect in January 2026, strengthening compliance expectations around data handling and transfers. Malaysia updated its data protection framework, and Singapore and Thailand continued refining governance mechanisms and enforcement measures.
Cybercrime remained a persistent operational challenge through the year. Multiple markets strengthened anti-scam initiatives, tightened SIM fraud controls and expanded reporting frameworks. Operators also increased AI-led fraud detection and monitoring systems, while ASEAN-level engagement continued to support regional cybersecurity readiness and coordination.
In sum
SEA’s telecom sector moved into a more mature, infrastructure-led phase in 2025. 5G is becoming mainstream across markets, while operators are broadening connectivity strategies beyond towers through fibre expansion, satellite coverage layers and higher subsea capacity planning. Data centre growth remained a major driver, supported by cloud adoption and rising AI compute demand, though sustainability, approvals and power availability increasingly shaped investment pace and location.
Stepping into 2026, the focus is expected to shift towards 5G monetisation, enterprise-led adoption, AI-driven operating models and continued cross-border digital infrastructure build-out. However, cyber resilience, trusted governance and sustainable infrastructure planning will be equally important in determining long-term outcomes.
