Few technologies can rival 5G’s ability to transform the experience of Malaysian consumers, and the products and services offered by Malaysian businesses and governments. It’s why Internet consumers of all stripes are looking forward to using 5G.

For internet service providers (ISPs), mobile virtual network operators (MVNOs) that leverage the promise of fixed wireless access (FWA), and Over the Top (OTT) companies, 5G creates unrivalled opportunities to expand market share and revenues, generate profits, create innovative and differentiated products, and boost customer experience.

But are service providers ready to grab this opportunity and address the hunger for 5G from users?

Capitalising on 5G requires access to the right set of backhaul solutions from reputed mobile network enablers (MNEs)—allowing ISP and OTT businesses to maximise the possibilities 5G presents.

Here's how they can do that.

 

Malaysia: A Nation Hungry for Internet Services and Media

Malaysians are already among the most prolific users of the Internet. Data from We Are Social and Hootsuite shows that Malaysia ranks sixth on the list of countries that spend the most time on the Internet, at nine hours and four minutes a day.

The pandemic magnified that trend. More Malaysians spent more time on the Web, consuming a higher number of services including ecommerce, social media, online delivery, streaming media, telemedicine, and products from edtech and fintech companies.

This is leading to the expansion of Malaysia’s digital economy. The Malaysian e-commerce market is predicted to grow at a compound annual growth rate of 16% between 2022 and 2026, hitting MYR69 billion in 2026, according to GlobalData research.

“Malaysia is among the fastest-growing ecommerce markets in Southeast Asia,” says Ravi Sharma, Lead Banking and Payments Analyst at GlobalData.

The demand for OTT services, too—including media, gaming and VOIP, among others—is set to rise considerably. Malaysians consume more media than other countries in Southeast Asia, reveals data from Google, Temasek and Bain & Company.

According to GlobalData, “the household penetration of subscription video on demand (SVoD) services in Malaysia is expected to increase from 17% in 2021 to 38% in 2026.”

Putting the above together—and combined with organisations taking forward digital transformation agendas, remote work initiatives, and the rapidly increasing use of cloud services such as those that power big data analytics, artificial intelligence, IoT, and Industry 4.0 projects, among others—Malaysia’s digital economy is likely to touch $34 billion in 2025, reveals Bain analysis.

The demand for Internet-based services and media will be spurred by the expansion of 5G, with its ability to offer faster speeds, lower latency, greater density, and newer business models thanks to network slicing capabilities. By 2025, Malaysia is projected to have 15 million 5G subscribers, according to research agency Twimbit, and about 40 million by 2030.

This represents a once-in-a-decade opportunity for ISPs and MVNOs that can leverage FWA—both of whom play a key role in creating access to 5G connectivity and associated services. Malaysian’s MVNO market size is expected to reach $2 billion by 2027, growing at a compound annual growth rate of 9% according to 360iResearch. And Ericsson Mobility Report: Malaysia Edition reports that FWA connections are forecast to grow to around 230 million by 2027, almost half of which are expected to be carried over 5G networks.

“Fixed Wireless Access is an efficient and scalable complement to fibre and cable that can help bridge the digital divide in Malaysia as it can be used to economically deliver 5G to homes and small and medium-sized enterprises,” says David Hägerbro, Head of Ericsson Malaysia, Sri Lanka & Bangladesh.

5G will also propel the use of OTT services in Malaysia. Revenue from just the video segment will touch $606 million by 2027, growing annually at 10% between 2022 and 2027. The number of OTT video consumers in Malaysia will also rise to 25 million by 2027, with a user penetration level of 71%, compared to 61% today.

 

The Challenge Facing Service Providers and OTT Companies

ISPs, MVNOs, and OTT companies want to seize the most value from 5G. In the way, however, are significant hurdles that impede them from moving quickly, while simultaneously maintaining low cost-structures which could create a drag on their profitability.

Access to Cost-Effective Backhaul: MVNOs, for example, want to capture new niche markets swiftly by offering innovative services—leveraging augmented reality and virtual reality (AR/VR) or IoT, for example—and data products at competitive price points. But they need easy, low-cost access to backhaul infrastructure—including fibre connectivity and edge computing services—which they can scale quickly, cost-effectively and compliantly.

This can be extremely challenging without the help of MNEs.

Expensive and Complex Fixed Line Expansion: Service operators also need competent MNEs—equipped with fronthaul and mid-haul solutions and multi-access edge compute offerings—to leverage FWA capabilities that can help them break free from the financial and operational challenges of setting up fixed line services to urban and suburban areas. By choosing wireless connectivity over expensive fibre, network operators can open up new markets quickly and inexpensively and offer ultra high-speed broadband to homes and businesses, thereby bridging Malaysia’s digital divide.

Time and Cost to Set up Edge Environments: OTT businesses require easy-to-consume multi-access edge compute capabilities, too. They want to improve customer experience by lowering latency and offering consumers innovative services—such as real-time recommendations—which require compute-and-storage-intensive capacity residing at the edge, as close to users as possible. Setting up this distributed infrastructure is prohibitively expensive and time-consuming.

 

TM Global: The Power Behind Malaysia’s 5G Throne

TM Global provides a suite of solutions that can help to iron out these challenges, allowing service providers and OTT businesses to focus on making the most of the 5G opportunity. It’s offerings include and go beyond the services offered by leading MNEs in Malaysia. By combining the power of its Fibre Network, Edge Facilities, and Edge Computing solutions, ISPs, MVNOs and OTT companies can achieve their revenue, profitability, customer experience, innovation and compliance goals, quickly, cost-effectively, and at scale.

TM Global offers comprehensive backhaul solutions for service providers to connect to Malaysia National 5G network. With an expansive network, TM Global’s backhaul solutions provide high bandwidth and quality of service with impressive flexibility and scalability. This allows service providers to be innovative and focus on their business. With enhanced performance and objective parameters in line with industry standards that are tailored for backhaul application, TM Global’s backhaul solutions are suitable for all service providers offering 5G-based services.

Additionally, TM Global’s Edge Facilities and Edge Computing–spread across Malaysia– serve as aggregation points. And offer the compute and storage capabilities to power a host of services stretching from content distribution to machine learning.

TM Edge facilities are strategically located in Seberang Jaya, Tasek Ipoh, Seremban, Kuala Terengganu, Kuantan, Kuching and Kota Kinabalu. These enable service providers to leverage TM backhaul networks—a more cost-effective solution compared to carrying traffic from cell sites all the way to regional data centres or core networks.

Plus, because TM Global’s Edge Facilities are located closer to users, they shrink latency for applications and content delivery including video, gaming and social media. This results in a more immersive customer experience, which in turn lowers customer churn and revenue losses—key success metrics for OTT firms.

TM Edge facilities also offer Multi-access Edge Computing (MEC) infrastructure that underpins a new breed of innovative and data-intensive services that require low latency such as those that are built using machine learning or AR/VR technology.

Put together, TM’s end-to-end backhaul and MEC services, combined with its technology prowess and wide footprint, ensure that service providers and OTT businesses do not have to work with multiple third-parties. Having a single point of contact elevates the ease, and lowers the cost, of management.

TM Global aims to unshackle ISPs, MVNOs, and OTT companies creating an environment that is conducive to the spread of the Internet, and its associated services. This shrinks Malaysia’s digital divide and grows the nation’s digital economy.

Everyday there are new applications coming to the fore, delivering vital capabilities, and every one of them demands faster internet speeds. Their whole premise is founded on delivering real-time value. They have been built because such speeds exist in the form of 5G.

Users are gung-ho about the emergence and the potential benefits of 5G, but not many are aware of the infrastructure and the transport network that drives 5G and the significance of this network to sustain 5G. At the heart of the ecosystem that is driving faster internet connectivity, lies ethernet backhaul.

Let us take a look at a few statistics. By 2027, a mammoth 60% of global mobile data will be over 5G networks and 9 out of 10 subscriptions will be 5G. We are already witnessing a rise in interconnected, smart devices, but this IoT penetration will increase exponentially as 5G starts replacing 4G as the connectivity of choice. So, it is not just human-centric traffic that is all set to explode, machine-centric traffic will witness a meteoric rise as well.

For businesses, 5G has already started delivering immense value. Its boosting edge computing, augmenting remote work, helping deliver even more engaging and immersive brand experiences, and building ROI-driven consumer connect. We are just skimming the surface in terms of the tangible benefits of deploying 5G connectivity. The advantages are only limited by business imagination.

But there is an elephant in the room – Network. Yes, with network technology primed to deliver 4G connectivity, we are seeing it woefully ill equipped to route data in real time across locations. Challenges abound in the form of capacity, availability, long-distance reach, need for ultralow latency and the ultra-dense nature of the 5G network.

This is where the importance of 5G backhaul comes into play. Network backhaul is a bridge between the core network and its subnetworks. In 5G, the backhaul connects the wired network to the mobile network. The significance of the backhaul cannot be overstated enough as it must support 100s of gigabits of traffic emanating from the core network, as well as supports devices across different bandwidths. If one were to pinpoint the benefits of a powerful backhaul underpinning 5G, we are looking at speed, massive capacity building and high bandwidth are the key. It is not difficult to imagine how these benefits will fuel the smart device or IoT revolution empowered by 5G.

5G technology does not exist in isolation and its rise has resulted in diverse technological changes. Radio Access Network (RAN) is becoming denser, there is a need for advanced network architectures and 5G transport technologies must deal with demanding performance requirements. Operational considerations have changed, but this also means reliability and robustness of existing transport solutions, should be maximised.

Enter ethernet backhaul.

 

Ethernet Backhaul is Critical To 5G Empowerment

Ethernet Backhaul is a standardised solution for 5G that provides wide coverage both at the city and regional level. The focus of ethernet backhaul is to deliver both flexible and reliable point-to-point and point-to-multipoint services with a focus on traffic prioritisation as per the requirements of the network and end users. Physical connectivity between different sites is delivered through fibre optic cables which ensures reliability and unhindered connectivity.

Think of ethernet backhaul as a traditional backhaul approach that has evolved to meet 5G requirements. It is a tried and tested format that has ably supported 4G and its advanced framework now handles 5G requirements.

The Benefits of Ethernet Backhaul for 5G

• Reliable Scalable Capacity

  The challenge with 5G is that it needs more bandwidth capacity. When 5G adoption picks up speed, backhaul capacity requirements can climb to 10GBE or higher. Ethernet’s capacity to support high capacity backhaul is perfectly placed to deliver on 5G’s high bandwidth requirement and the need to oversee vast amounts of traffic.

• Better Availability

  5G connectivity needs 24x7 availability especially because of the critical IoT systems and machine-centric connections that will be driven by the network. Downtime can disrupt large-scale business processes globally, and this is an understatement. The fallout of non-operational backhaul services in a 5G environment will be tremendous. However, ethernet backhaul has a safety mechanism wherein a path protection mechanism ensures continuity despite interruption. Also, another advantage of ethernet as compared to a wireless network is that it delivers high-performance connectivity even in harsh weather conditions.

• Latency

  When we talk about 5G, we are talking about ultra low latency in the same breath. Therefore, 5G is being touted as the technology that can enhance a truckload of services and environments like healthcare monitoring, online gaming, metaverse etc. Ethernet backhaul delivers the levels of low latency needed and at the same time supports the enormous amount of traffic and complex service needs. There is minimal interference as the fibre optic cables are well connected with one another and can easily withstand the elements.

• Ultradense Network

  Ethernet backhauls are continuously evolving courtesy the constant advancement made in ethernet technology. They are now capable of catering to higher RAN frequencies and dense small cell deployment, which makes them perfectly placed to manage 5G. The ultra-dense and heavy traffic cells in 5G can be seamlessly and reliably connected with the core network irrespective of the demanding nature of 5G in terms of capacity, high availability, latency, and efficiency.

 

The Importance of the Services Provider

There is no doubt ethernet backhaul is imperative to maximising 5G potential, but this can only happen if you work with a service provider that guarantees unhindered robust transmissions, and assures permanent and sustainable secure connectivity, ideal for high-speed movement of mission critical data. Also, it is important the transmission capacity can scale with your needs, with addition of new bandwidth. What we are talking about is flexible capacity building. Also, 5G is nothing without coverage and the service provider should be able to deliver extensive coverage across your target areas.

 

To Conclude

There is a power behind the 5G throne, and it is ethernet backhaul. It will be fair to say, the success and failure of your 5G enabled services/solutions depends on the nature and strength of ethernet backhaul. Get this part wrong and your 5G connectivity dreams will go bust. But get it right and you can get the most out of 5G.

Backhaul is key to the success of any service provider and more so in the case of 5G where the speeds are ultra-high, and latency is ultra-low. However, existing backhaul networks cannot support the needs and requirements of 5G as they were built for a different generation of mobile technology.

5G is poised to revolutionise the way businesses generate, share, and process data. Be they IoT networks or connected vehicles or automated factories or remote healthcare or streaming media, companies across industries will generate and transmit unprecedented quantities of data at speeds and latency never seen before. And all this data would have to be transmitted over vast distances and processed either at the edge or in the cloud equally quickly.

This deluge of data at unprecedented speeds and demanding ultra-low latency is poised to add a tremendous amount of pressure on the backhaul networks of service providers. The existing backhaul set up, which are optimised to meet 4G requirements, are unlikely to meet the demands generated by 5G and will need a rapid overhaul for mobile operators to effectively roll out their 5G services.

 

The Importance of Backhaul

Backhaul performance, capacity, and reliability are integral to meeting the transport demands of mobile networks as the increasing volume of data needs to be transported from the radio access network (RAN) to the core of a mobile network. This critical link between cell tower location and network core is a central component of a wireless network infrastructure.

However, with each new generation of mobile technology, the pressure on backhaul networks increases tremendously as there’s a quantum leap in data speeds and volume. A backhaul that’s not up to the mark can cause packet loss, high latency, and carrier jitter among other problems for mobile operators, thus severely compromising quality of service and customer experience.

As a result, building an efficient backhaul is critical for 5G service providers to enable high speeds, large capacities, and open up high bandwidth at low latency for numerous connected devices.

 

5G Impact on Backhaul

5G will have a significant impact on backhaul networks of mobile operators. According to GSMA, mobile traffic is estimated to increase to 6,268 exabytes (1 EB equals 1 billion GB) annually by 2027 in the top 30 markets, with 5G accounting for 83% of total traffic by the end of the period.

As one 5G end-user can conceivably consume as much wireless capacity as 10 or more 4G LTE users, the impact of 5G on backhaul networks will be unlike any previous generation of mobile technology. A diversity of use cases, Multiple Input Multiple Output (MIMO), and network slicing are some of the key factors influencing backhaul for 5G.

Facilitated by network slicing, 5G supports three main categories of 5G use cases—enhanced Mobile Broadband (eMBB), massive Machine-Type Communications (mMTC), and ultra-reliable Low-Latency Communications (urLLC). And each of these use cases add their own different type of pressure—from high-speed bandwidth to ultra-low latency—on the backhaul networks.

As a result, at peak throughput and download speeds of up to 10Gbps, exponentially higher data loads must be “backhauled” from infinitely more locations at ever faster rates at ever decreasing latency.

 

Way forward

The backhaul network is commonly Ethernet-based (carrying IP payloads), but can also be dark fibre, or microwave and millimetre wave-based wireless. Each backhaul technology has its merits and its place, meaning a mix of all will be used for 5G.

Packet-based Ethernet supports backhaul for 5G effectively. Bit rates and link distances have increased through the introduction of fibre-based Ethernet, and bandwidth limitations have been alleviated. But an Ethernet-based infrastructure may not be available for every location that an operator needs to connect.

At the same time microwave and millimetre wave-based backhaul has been taking significant technological leaps forward and has been ready to support 5G for some time. All its enhanced capabilities are now coming into play as 5G is switched on at an incredible pace. It is mainly used when high-speed wireline connectivity to telecom sites (typically via Ethernet-based fibre optic connectivity) is unavailable and when rapid deployment is required. However, since spectrum is a finite precious resource, getting the required spectrum can be a challenge and be expensive.

Dark fibre is when operators deploy their own optic fibre infrastructure or lease unused (dark) fibre from a third party that already owns the infrastructure to connect their RAN to the core mobile network. However, laying their own fibre infrastructure can be expensive or the fibre may not be readily available when leasing from a third-party.

Mobile operators will have to use a judicious mix of all the different options for their backhaul network depending on cost, efficiency, performance, and use case.

 

The Ideal Backhaul Solution

Hence, while rolling out 5G-based services—be they for IoT networks or connected vehicles or automated factories or remote healthcare or streaming media—service providers, including OTT players and other industry specific service providers, need to make sure their backhaul is able to support their demands imposed by 5G. Service providers will need to improvise their network capacity to cater to an even greater surge in bandwidth demand.

TM Global provides comprehensive backhaul solutions over Ethernet to meet all the demands of service providers. With a wide and comprehensive network, TM Global’s Ethernet-based backhaul solutions provide more bandwidth and better quality of service with higher degrees of flexibility and better scalability.

TM Global’s comprehensive wholesale ethernet-based backhaul solutions are developed to fulfil the backhaul requirements of all service providers. It provides end-to-end transport of voice and data traffic according to a specific quality of service that is specifically geared towards meeting 5G requirements.

It offers a cost-effective solution and allows the service providers to focus on their core competence and business, specifically addressing the customers’ needs. With enhanced performance and objective parameters in line with industry standards that are tailored for backhaul application, TM Global’s Ethernet-based backhaul solutions are suitable for all service providers offering 5G-based services, irrespective of whether they are mobile operators or OTT players or those offering industry specific solutions.

5G helps unlock business value and further drives enterprises on the path of transformation that started with 4G. This change will be driven by enhanced latency, reliability, bandwidth, capacity, and efficiency, all of which are the hallmarks of 5G. The promise of fibre-fast speeds allows enterprises to think out-of-the-box and identify opportunities for business growth driven by technology innovation, building better inter-system synergies and delivering immersive customer experiences.

It's important that we do not see 5G purely from the prism of extremely high internet speed but think of it as an agent of change that will fuel the evolution of enterprise network architecture.

78% of businesses believe 5G will help unlock new business opportunities and 77% think it will result in productivity gains. The question is why? The answer lies in the capabilities of 5G.

 

5G Capabilities that Drive Digital Transformation

Enterprise businesses are typically technologically advanced, and their systems and processes keep in step with business growth. Here are some 5G capabilities that have the potential to transform the way enterprise organizations function, and also their products and services:

High Speed: This 5th generation mobile network can deliver speeds between 10 to 20 Gbps, which makes it around 100 times faster than 4G technology. Faster data transfer ensures real-time data sharing that is the bedrock of intelligent systems, which accelerate results-oriented decision making.

Bigger Capacity: 5G can handle extremely high traffic demands, meaning huge amounts of data can be transferred seamlessly, without network connectivity issues. This enables the delivery of bleeding-edge user experiences; it also allows enterprises to leverage next-gen deployment models and make available powerful services.

Higher Density: The rise of IoT and increased reliance across enterprise businesses on connected devices means there is tremendous burden on traditional networks, which simply cannot handle the sheer number of devices working concurrently. 5G has the potential to empower an estimated 1 million devices per square kilometre. Data can be transferred at the same time with the same network, doing away with the need for multiple networks.

Low Latency: The defining capability of 5G is its low latency coupled with high reliability. This is of critical importance in applications where every second counts, zero lag is of paramount importance, and which demand consistent availability of network services.

 

The Benefits of 5G

The benefits of underpinning services and solutions with the power of 5G are many and varied. And, if truth be told, we have just got started on making optimum use of 5G in an enterprise scenario.

From the manufacturing perspective, 5G can leverage real time machine data that can help manufacturers optimize production workflows. The key here is improved and real time data that improves productivity, efficiency and reduces wastage of resources – personnel, material, time and money.

It also impacts supply chain management as manufacturers get more visibility into the different aspects of their supply chain, and are able to monitor and control the supply chain better with Big Data intelligence. 5G can also enhance the reliability of IoT, wherein manufacturing systems can talk to one another, thus enabling automation, and driving the remote control of huge industrial spaces. Over a period of time, we are going to see more trust in the reliability of IoT, courtesy 5G.

5G also facilitates better customer experiences. Again, it’s the fast connectivity that allows enterprises to build immersive applications that can help them connect better with their customers. We are talking about getting in front of customers, when they want a business’s services most. Think about making use of the metaverse to sell products, AR empowered retail applications, and much more.

Healthcare is another domain wherein 5G can make its mark and started doing so. The pandemic put a lot of pressure on existing medical systems and a realization that traditional approach to healthcare won’t be enough. We saw an uptick in telemedicine, but it was rife with problems because of unreliable speed and connectivity issues. The robustness of telehealth is an outcome of faster internet speeds, availability, and capacity. Three qualities that 5G can bring to healthcare. Information can be sent and received quickly and connected medical systems can ensure the right advice and treatment options are made available on the fly and remotely.

This is just the start.

Advanced procedures like robotic surgery which demand extremely low latency can now be popularly leveraged for across-the-globe surgeries. A doctor sitting out of Malaysia can conduct surgeries for patients in the United States. The key pillar of successful robotic surgery is not just the technological capability of the surgical systems but also clearer video resolution, video streaming and information transfer. Everything should happen in real-time, without lag. 5G is making this possible and large hospitals can now offer their services across the globe, without having a large footprint in the form of infrastructure and staff.

Educational institutes can also benefit from 5G wherein their teachers can provide academic services remotely. We have seen online learning pick up steam during the pandemic, and one of the biggest complaints was inconsistent speeds and resource availability, which together impacted the learning process. With 5G and the advantage of reliable and fast speeds, fostering ideal teacher-student connect becomes easy.

Another area where 5G is set to offer huge dividends is autonomous driving. One of the features of 5G architecture is network slicing wherein, a single wireless network can be divided into different network levels. Each level is used for a specific function. This hugely benefits automated driving, because you have just one data highway to pass information to onboard systems, whether safety related, infotainment or any other.

Again, it would be wise to repeat that we have just begun scratching the surface of 5G, and how its capabilities will drive improvements across sectors, in the enterprise space. As the sectoral penetration of 5G improves, its applicability will increase, and we will find enterprises using this technology in newer and more innovative ways.

 

5G Demands Robust Support

No technology exists in isolation, and this is true for 5G as well. You need robust 5G backhaul to connect the wired network to the mobile network. Whether it is manufacturing, healthcare, education or any other industry, a stable network backhaul is critical for managing the huge amounts of traffic and the bandwidth support that is needed across devices.

With ethernet backhaul you benefit from a standard backhaul solution for 5G that delivers wide area coverage and much needed flexibility and reliability when it comes to point-to-point and point-to-multipoint services. If enterprises want to benefit from 5G they cannot ignore the nature of backhaul that will support their reliance on 5G. Not doing so will be immensely counterproductive.

 

TM Global - A 5G Network Enabler Focusing on Nation Building

TM Global seeks to leverage the immense potential of 5G to facilitate digital transformation and fuel Malaysia’s growth across diverse sectors. The company aims to become a trusted wholesale infrastructure provider and 5G enabler by fuelling Malaysia’s digital blueprint enabled through continuous support for JENDELA and MYDIGITAL. It also seeks to provide extensive coverage for 4G and 5G deployment in Malaysia and expand nationwide broadband coverage. By the end of 2022, we have revitalise the domestic content and IP services ecosystem with total of 62 TMiX nodes deployed, each facility specifically designed to be closer to the customer for better user experience. This has the capacity to increase peering and interconnect across Malaysia and strengthen the internet ecosystem in the country.