This chart showing Malaysia fixed broadband prices and subscriptions suggests why the advice for connectivity providers to “stick to connectivity” and avoid efforts to “move up the stack” (towards applications) or “across the ecosystem” (occupying new roles other than connectivity}--though logical--is problematic.
source: Khazanah Research Institute
Lower fixed network broadband prices do not lead to higher subscription rates faster than revenue per account drops.
Mobile broadband has a different pattern. Lower prices have had the effect of boosting subscription rates. In part, that is because fixed network broadband is a much more mature product, compared to mobile broadband.
source: Khazanah Research Institute
To the extent it is possible to grow broadband revenues, it likely lies mostly in the mobile realm, for the immediate future. Eventually, as mobile broadband matures, the link between lower prices and subscription growth will wane.
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