How to find the best telco in Malaysia

The Philippines, Malaysia and Vietnam have all launched telco competition to drive down their national telecoms costs, but a recent article from the FT suggests there may be more to it than meets the eye.

The FT’s article points to the fact that Telstra’s cost of ownership (COI) for its network in Malaysia is one of the highest in the region.

Telstra is the most expensive telecommunications provider in Malaysia, with its COI topping out at around 8 per cent of the total market, according to FT data.

“If the Philippines and the Philippines-Vietnam market share had been stable, the COI of the Philippines would be well below Telstra,” said a source close to the telco.

As FT notes, Telstra is facing competition from its biggest competition, China’s Huawei.

Huawei has also launched a new, cheaper, and better-performing tier 1 offering called the Huawei Mobile, but it has yet to launch its own LTE network in the Philippines.

For the moment, however, Huawei’s low COI and lack of LTE capability in the country are making Telstra look very attractive to foreign investors.

That said, Huawei and other foreign carriers are currently looking for ways to make a profit, which could be a competitive advantage for Telstra.

In a statement to the FT, Telco said: “Our COI for our network is at around 9 per cent.

It’s one of Asia’s lowest COIs. 

Telcos tend to offer more flexible pricing and offer a lower monthly charge.”