ABSTRACT
Growing trend of broadband penetration in the past few years has led to significant increase in the number of licensees in the Malaysian telecommunication industry. However, the cancellation rate of the Individual licenses are equally on the rise since 2007. This put the country’s telecommunication industry at a risk as Malaysia may not achieve its national digital economy agenda by 2020. Thus, this study examines: (1) the extent to which the telecommunication industry has contributed to the Malaysian economy, and (2) whether poor financial performance is the main reason that led to the rise of the license cancellation. Using financial statements of 6 firms from 2012 to 2016, regression analysis was carried out. Results obtained show that the firms contributes significantly to GDP of this particular industry. This implies that the overall GDP is contributed by the exit of the firms’ holding the Individual licenses.
