Hand Phone Users Survey 2006

© Malaysian Communications and Multimedia Commission 2007
The information or material in this publication is protected under copyright and, save where otherwise stated, may be
reproduced for non-commercial use provided it is reproduced accurately and not used in a misleading context. Where
any material is reproduced, MCMC as the source of the material must be identified and the copyright status
acknowledged.
Published by:
Malaysian Communications and Multimedia Commission
63000 Cyberjaya, Selangor Darul Ehsan, Malaysia.
Tel: 6 03 - 8688 8000 Fax: 6 03 - 8688 1006
Toll Free: 1-800-888-030
http://www.mcmc.gov.my
Concept, design and layout by: Spot on Communications Sdn Bhd (672234 A)
CONTENTS
3 From the Chairman
4 Introduction
7 Main findings
17 Tables
22 Glossary
24 Update on Household
Use of the Internet Survey, 2005
25 Survey counts of residential fixed

lines and payphones 2006
From the Chairman
T
his is the fourth issue in the Statistical Briefs series published by
the Malaysian Communications and Multimedia Commission
(MCMC) and the third brief on the annual Hand Phone Users
Survey. Statistical Briefs present main findings of selected surveys,
conducted or commissioned by the MCMC, which are of direct interest
to a broad cross section of users.
This issue features the main findings of the Hand Phone Users Survey
2006 (HPUS 2006). In addition, it brings together the findings of the
two earlier surveys i.e. HPUS 2005 and HPUS 2004 to enable easy
comparison and to bring out trends in relation to hand phone ownership
and usage in the country.
The response rates to the Hand Phone Users surveys conducted by the
Hand Phone Users Survey 2006

MCMC have been very good since its inception in 2004. The maiden
survey garnered a 71.1 percent response rate while the latter two
chalked up 79.0 percent response rate each. In this connection, I would
like to thank all those who participated, without whom these surveys
would not have been possible.
I would like to commend the Research and Planning Division for the
successful conduct of HPUS 2006 and at the same time invite
suggestions from users to make this publication even more useful.
Datuk Dr. Halim bin Shafie

Chairman
Malaysian Communications and Multimedia Commission.
INTRODUCTION
The Hand Phone Users Survey 2006 is the third of an annual survey on
hand phone users conducted by the MCMC. The main objective of this
survey is to estimate proportions of the subscriber base that fall into
the classes of the various categorization schemes of the key variables.
Proper use of these estimated proportions in conjunction with the total

known subscriber base as well as population estimates will facilitate the
derivation of the various hand phone penetration rates.
The survey probed the following core variables:
• nationality
• usual state of residence
• urban/rural distribution
• age
• gender
• occupational status
• income
• ethnicity
as well as user trends and experiences. In 2006, these included the

following:
4
• preferred payment plan
• SMS usage
• average monthly charges
• purchase through the hand phone
• awareness of 3G
• usage of 3G
• intention and timeline for migration to 3G
• reasons for not wanting to migrate to 3G
• use of hand phone to access internet
• SPAM
In addition, respondents were probed in respect of awareness of the

then ongoing nationwide prepaid registration exercise.
Target population
The target population included all main users of hand phones on all
digital platforms in the states and territories making up Malaysia.
These were the main users of the 012, 013, 014, 016, 017 and 019
networks. Both postpaid and prepaid users were covered.
Reference date and geographic coverage of the survey
The reference date of the survey was 31 March 2006. The survey was
canvassed using a Computer Assisted Telephone Interview (CATI)
solution and operated out of MCMC's CATI Centre at Shah Alam. The
canvassing period extended from 15 May to 8 July 2006. No statistical
unit and no segment of the target population were excluded on the

grounds of geographical inaccessibility or service non-coverage or on
any other grounds.
Response Rate
Using the American Association for Public Opinion Research (AAPOR)

Formula Number 1, the survey recorded a response rate of 79 percent.
Methodology
The sample size was determined as 4,925 units (α = 0.01 and 5

d= 0.02) drawing from the work on sample sizes from multinomial
populations by Chakravarty.
There was only one stage of sample selection as the survey adopted a
simple random sample (SRS) approach. Meaningful stratification was not
possible because a suitable variable for stratification was not available.
As at 31 March 2006, there were 20,694,830 hand phone subscriptions.

The survey also determined that as high as 18 percent of subscriptions
had the same main user and this was netted out to transfer the
estimates from the survey, to a subscribers basis.
Method of administering the instrument
The questionnaire was administered by CATI. Interviewers call up

main users of randomly selected hand phone numbers to seek their
cooperation. Answers given to precoded questions were clicked in while
open-ended answers were typed in. Interviewing time extended from
10:00 am to 8:00 pm on weekdays and weekends
6
Main Findings
Core Variables
Core variables of the Hand Phone Users Survey are variables that are
canvassed every round so as to enable the monitoring of key
indicators in mobile telephony.
The findings in respect of these variables are presented below.

However, percentages may not add up to 100.0 percent because of
rounding.
Percentage distribution of subscribers by nationality
92.5 percent of hand phone subscribers are Malaysian while

7.5 percent are Non-Malaysian.

Percentage distribution of subscribers by state
21.7% 13.0% 8.6%
7
Selangor continues to be the state with the most subscribers 3 years
in a row. It has 21.7 percent of the subscriber base in 2006. This is
followed by Johor (13.0 percent) and WP Kuala Lumpur (8.6 percent).
For 2006, percentages in the other states range from 3.7 percent to
7.7 percent with the exceptions of Perlis and the Federal Territory of
Labuan where the proportions are 0.9 percent and 0.3 percent
respectively.
State Percentage share of hand phone
subscriber base
2004 2005 2006
Selangor 25.0 24.7 21.7
Johor 13.2 13.7 13.0
WP Kuala Lumpur 9.5 9.7 8.6
Perak 8.1 7.3 7.7
Sarawak 6.4 5.9 7.1
Kedah 6.4 5.9 6.6
Pulau Pinang 6.9 7.4 6.4
Sabah 6.0 6.4 6.4
Pahang 4.0 4.5 4.8

Kelantan 3.6 3.7 4.6
Negeri Sembilan 4.0 3.9 4.3
Terengganu 2.5 2.9 3.8
Melaka 3.5 3.0 3.7
Perlis 0.7 0.8 0.9
WP Labuan 0.2 0.2 0.3
8
Percentage distribution of subscribers by urban-rural sector
Sector Percentage share of hand phone

subscriber base
2004 2005 2006*
Urban 81.9 80.5 78.0
Rural 18.1 19.5 22.0
* - preliminary
Over the years 2004-2006, the urban-rural gap has narrowed as shown
in the table above. The definition of ‘urban’ used in this table follows
that of Census 2000 conducted by the Department of Statistics,
Malaysia. Census 2000 findings showed that 62 percent of the
population live in urban areas with the remaining in the rurals.
Percentage distribution of subscribers by broad age groups
Adults (users from 20 to 49 years of age as at last birthday) continue

to be the biggest group accounting for 66.8 percent of the subscriber
base. Pre-teens & teens (users up to the age of 19 as at last birthday)
is the second largest group of users accounting for 20.5 percent. While
seniors (aged 50 and above) account for only 12.6 percent.
Age group Percentage share of hand phone

subscriber base
2004 2005 2006
Pre-teens & teens 12.3 13.1 20.5
Adults 78.8 78.2 66.8
Senior 9.0 8.7 12.6

While the figures for 2004 and 2005 show a degree
of similarity, it was already evident that usage among
the pre-teens & teens is on the rise. This was
confirmed by the 2006 survey which had pre-teens &
teens at 20.5 percent of the subscriber base, a
significant increase from the 13.1 percent of 2005.
Percentage distribution of subscribers by gender
Gender Percentage share of hand phone

subscriber base
2004 2005 2006 9
Male 61.1 57.4 58.3

Female 38.9 42.6 41.7
Survey results show that males make up 58.3 percent

of the subscriber base while females take up the
remaining 41.7 percent. Figures from the Hand Phone
Users Survey 2004 and 2005 have been included for
comparison in the table above. Figures show that on
the whole, the differences between percentages
accounted for by males and females have narrowed
over the period 2004 to 2006.
Hand phone subscribers by gender
61. 1 Male
70.0 57.4 58.3
Female
60.0
42.6 41.7
50.0 38.9
40.0
30.0
20.0
10.0
0.0
2004 2005 2006
Percentage distribution of subscribers by employment status
In 2006, 53.4 percent of hand phone subscribers are

employees. Students make up the second largest
group with 17.3 percent. The remainder consist of
self-employed (4.4 percent), employer (9.1 percent)
and unemployed (15.9 percent).
Percentage distribution of subscribers by income category
As is the norm in income distribution, the income distribution of

subscribers is positively skewed with a modal class of RM1,000 to
10
RM3,000 per month (50.4 percent). 7.2 percent had incomes between
RM3,000 to RM5,000 while only 3.3 percent had incomes in excess of
RM5,000.
Hand phone subscribers by monthly income category, 2006
60 50.4
50 39.1
40
30
20
7.2
3.3
10
0
Less than RM1,000 but less RM3,000 but less RM5,000 and
RM1,000 than RM3,000 than RM5,000 above
Percentage distribution of subscribers by ethnicity
Among Malaysian users, Malays account for 57.3 percent of the

subscriber base while the Chinese account for 28.9 percent. Bumiputra
Sabah, Sarawak and Orang Asli take up 6.7 percent, Indians
6.2 percent, while other Malaysian ethnic groups take up the remaining
0.9 percent.
Ethnic Group Percentage share of hand

phone subscriber base
2005 2006
Malay 53.9 57.3
Chinese 32.4 28.9
Indian 6.3 6.2

Bumiputra Sabah,Sarawak and Orang Asli 6.5 6.7
Others 0.9 0.9
By and large the distribution pattern of the 2005 survey seems to have
been borne out in the 2006 survey as well.
Percentage distribution of hand phone

subscribers by ethnic origin
57.3
60.0 53.9
50.0 11
40.0 32.4
28.9 2005
30.0 2006
20.0
6.5 6.7 6.3 6.2
10.0 0.9 0.9
0.0
Malay Bumiputra Chinese Indian Others
Sabah, Sarawak
& Orang Asli
Users Trends And Experiences
This section of the survey probes current trends and issues in the
usage of hand phones and experiences of hand phone users.
For example, while the survey was being canvassed, registration of

prepaid users was in progress. A question on awareness of prepaid
registration was included to access awareness of the registration
campaign. At survey end, it was estimated that at least 74.7 percent of
the prepaid subscriber base was aware of the on-going registration as
well as the implications of not registering.
Percentage distribution of subscribers by payment plan
Percentage distribution of
subscribers by payment plan
2004 2005 2006
Postpaid 18.6 19.6 15.9

Prepaid 81.4 80.4 84.1
Prepaid is still the payment plan of choice as results of all 3 surveys

show.
Percentage distribution of hand phone

subscribers by payment plan
12
100.0
81.4 80.4 84.1
80.0
60.0
40.0 Prepaid
20.0 18.6 1 .6
19.6 15.9
Postpaid
0.0
2004 2005 2006
This is supported by secondary data. As at 31 March 2006 the

proportion of prepaid subscriptions as derived from administrative
records was 85.5 percent well within the confidence interval of the
survey estimate.
SMS usage
The table below shows a significant increase in the percentage of

subscribers sending more than 5 SMSes per day over the period 2004
to 2006. At the same time non SMS users amounting to 25.9 percent
in 2004 has dropped to 16.4 percent in 2006. This shows that over the
period 2004 to 2006, more non users have begun to use SMS services
while those already using have intensified usage.
SMS Per Day 2004 2005 2006

0 25.9 15.1 16.4
1 9.1 7.6 7.5
2 9.7 8.1 9.9
3 10.8 9.2 9.0

4 5.6 3.0 4.7
5 7.2 7.4 6.4
More than 5 31.7 41.8 46.1
Don’t know 0 7.8 0
The Communications and Multimedia, Selected Facts and Figures Q3

2006 showed that 23.4 billion SMSes were sent out in the first 9
months of the year. Corresponding figures for 2005 and 2004 were
14.4 billion and 6.6 billion respectively. This represents a jump of
255 percent from 2004 to 2006. 13
Average monthly charges
53.4 percent of users do not exceed RM50.00 per month on the

average while 28.4 percent spent between RM50.00 to RM100.00 per
month on average. A further 9.7 percent spent between RM100.00 to
RM150.00 while 3.3 percent had monthly bills in between RM150.00 to
RM200.00. Only 5.1 percent had bills over RM200.00.
Purchase via hand phone
In 2006, 17.6 percent of hand phone subscribers purchased products

or services through their hand phones during the past 3 months
compared to 18.7 percent in 2005. However the difference is not
statistically significant and does not indicate tendencies in any
direction.
Percentage distribution of hand phone subscribers purchasing

products & services through their hand phone
No Yes Yes No
2005 2006
81.3 18.7 17.6 82.4
3G Services
14 Public awareness of 3G telephony has increased. In 2005 only

52.8 percent was aware of 3G telephony whereas in 2006 the situation
improved to 65.7 percent. Keenness about 3G telephony has decreased
somewhat with 28.1 percent expressing intention to migrate while it
was 30.1 percent a year ago. Of those who expressed intention to
migrate 67.7 percent mentioned they would do so within 12 months
subject to availability of the services.
Awareness of 3G services Percentage share of hand

phone subscriber base
2005 2006
Yes 52.8 65.7
No 47.2 34.3
Percentage distribution of hand phone subscribers
by awareness of 3G
65.7
70.0
52.8 Yes No
60.0 47.2
50.0 34.3
40.0
30.0
20.0
10.0
0.0
2005 2006

The main reason cited by those who do not see themselves migrating
to 3G is that they do not need the services. Whereas in 2005 the cost
of the phone and the cost of the service were major disincentives,
these have receded especially on concern about the cost of the service.
Reason 2005 2006

Don’t need the service at the moment 54.8 66.8
The phone is too expensive 37.0 35.4
The service is too expensive 31.2 18.3
15
You want to “wait and see” 28.9 17.9
Others 9.7 13.5
Multiple response
Percentage distribution of hand phone subscribers
by reason for not migrating of 3G
Don't need the service 54.8
at the moment 66.8
The phone is too 37.0

expensive 35.4
The service is too 31.2

expensive 18.3
You want to "wait and 28.9 2005

see" 17.9
2006
9.7
Others
13.5
As at October 2006, administrative records showed a total of 362,000

3G subscriptions.This accounted for only 1.6 percent of the total
subscription base.
Internet access using hand phone
A question on Internet access using hand phone was asked for the first
time in the 2006 survey. Only 18.4 percent of the hand phone
subscribers use their hand phone to access the Internet.
16
SPAM
SPAM which has increasingly attracted public concern of late, made its
way into the 2006 survey questionnaire. As much as 42.3 percent of
respondents said that they received some form of SPAM through their
hand phone in the last 3 months. 76.3 percent of these received at
least 1 SPAM in a week.
TABLES
Caution is required in the use of the estimates tabulated below.
Whilst the MCMC takes every care to minimise non-sampling errors,

which cannot be quantified, the estimates presented are also subject to
sampling error, which is a measure of the chance variation that occurs
because a sample, and not the entire population is canvassed. The
sampling error of an estimate is usually expressed as a percentage of
that estimate to give the relative sampling error (RSE) of that
estimate.
In general, estimates that are small are subject to high RSEs. As a

guide, only estimates with RSEs of 25 percent or less are considered
reliable for general use. Estimates with RSEs greater than 25 percent
but less than or equal to 50 percent are denoted with an asterisk in
these tables and should be used with caution while those with RSEs

greater than 50 percent are denoted by two asterisks and are
considered too unreliable for general use. However these estimates
may be aggregated with others until an RSE of less than 25 percent
is obtained.
Confidence intervals for very small estimates should be based on the

binomial distribution rather than the normal approximation to the
binomial. As an alternative, the method of Korn and Graubard,
1998 may also be used.
Percentages may not add up to 100.0 percent because of rounding.
17
Table 1 Nationality Percent RSE
Malaysian 92.5 0.5
Non-Malaysian 7.5 5.6
Table 2
State Percent RSE
Johor 13.0 4.1
Kedah 6.6 6.0
Kelantan 4.6 7.3
Melaka 3.7 8.1
Negeri Sembilan 4.3 7.6
Pahang 4.8 7.1

Pulau Pinang 6.4 6.1
Perak 7.7 5.5
Perlis 0.9 16.4
Selangor 21.7 3.0
Terengganu 3.8 8.0
Sabah 6.4 6.1
Sarawak 7.1 5.8
18
WP Kuala Lumpur 8.6 5.2
WP Labuan *0.3 31.6
Table 3
Age category Percent RSE
Pre-teens & teens 20.5 8.6
Adults 66.8 12.2
Seniors 12.6 5.2
Table 4
Gender Percent RSE
Male 58.3 1.4
Female 41.7 1.9
Table 5
Employment status Percent RSE
Self-employed 4.4 7.5

Employer 9.1 5.1
Employed 53.4 1.5
Unemployed 15.9 3.7
Student 17.3 3.5
Table 6
Income category Percent RSE
Less than RM1,000 39.1 2.5

RM1,000 but less than RM3,OOO 50.4 2.0

RM3,000 but less than RM5,OOO 7.2 7.1
RM5,000 and above 3.3 10.7
Table 7
Ethnic origin Percent RSE
Malay 57.3 1.4
Bumiputra Sabah, Sarawak and

6.7 6.2
Orang Asli
Chinese 28.9 2.6
Indian 6.2 6.5 19
Others 0.9 17.6
Table 8
Payment plan Percent RSE
Postpaid 15.9 3.7
Prepaid 84.1 0.7
Table 9
Awareness of prepaid
Percent RSE
registration
Yes 74.7 1.0

No 25.3 3.0
Table 10
Registered Percent RSE
Yes 55.7 1.8

No 44.3 2.3
Table 11
Monthly hand phone charges Percent RSE
Less than RM50 53.4 1.5

RM50 but less than RM100 28.4 2.6
RM200 and above 5.1 7.0
Table 12
SMS/MMS sent per day Percent RSE
0 16.4 3.7
1 7.5 5.8
2 9.9 5.0
3 9.0 5.3
4 4.7 7.4
5 6.4 6.4
20 More than 5 46.1 1.8
Table 13 Purchase through

Percent RSE
the hand phone
Yes 17.6 3.5
No 82.4 0.7
Table 14
Awareness of 3G Percent RSE
Yes 65.7 1.2

No 34.3 2.2
Table 15
Intention to migrate to 3G Percent RSE
Yes 28.1 10.7

No 71.9 0.4
Table 16
Reasons for not wanting to
Percent RSE
migrate to 3G
The phone is too expensive 35.4 3.5

The service is too expensive 18.3 5.2
You want to “wait and see” 17.9 5.3
Don’t need the service at

66.8 2.2
the moment

Others 13.5 16.1
Multiple responses
Table 17
Access Internet through
Percent RSE
hand phone
Yes 18.4 3.5

No 81.6 0.8
Table 18
Received SPAM Percent RSE 21
Yes 42.3 1.9
No 57.7 1.4
GLOSSARY
The hand phone The hand phone is seen as personal and not
household equipment. This is because hand
phones are normally taken away by their main
users when they leave the house or office. Also,
when the hand phone rings at home, more often
than not the person who answers it is the main
user as calls received by that device are
expected to be for him.
(see also main user below)
The main user The main user may or may not be the legal
owner of the device. He may also not be the one
who pays for the bills incurred as in the case of
supplementary subscriptions and company paid
subscriptions.
Ethnicity The ethnicity of an off-spring of mixed parentage

is Malay if either parent is Malay, or recorded as
reported or takes the ethnicity of the father if
undecided.
Age Age referred to age as at last birthday.
Usual state of Usual state of residence refers to the state where

residence the respondent has a home and has stayed
continuously there for the past 6 months.
If he has stayed for less than 6 months but
22
knows beyond reasonable doubt that he will be
there for at least 6 months continuously, then he
should be counted in that state. This is especially
so in cases where the respondent has just been
transferred in, prior to the interview taking place.
If a respondent knows that he will be moving to
another state shortly but has not done so yet at
the time of the interview then he should not be
counted as a resident of the state where he is
moving to. This is especially so in cases where
the respondent is in notice of transfer but has
not moved yet.
Usual state of residence does not refer to the state
where ancestral homes or kampungs are located.
Monthly hand Refers to average charges on the hand phone
phone charges through which the interview took place and does
not include the charges on another hand phone
that the respondent might have.
In the case of prepaid subscriptions, the
monthly hand phone charges refer to the
average top up per month.
SMS Includes MMS
SPAM SPAM, for the purposes of this survey is

indiscriminately sent, unsolicited, unwanted,
irrelevant, or inappropriate messages, especially
commercial advertising in mass quantities.

23
UPDATE ON HOUSEHOLD USE OF THE INTERNET
SURVEY, 2005 (HUIS 2005)
Percentage distribution of household Internet subscribers by

urban-rural sector, 2005
The HUIS 2005 showed that the urban sector accounted for 88 percent
of the total subscriber base while the rural sector accounted for the
remaining 12 percent.
Distribution of household Internet

subscribers by urban-rural sector
Rural
12%
Urban
88%
24
SURVEY COUNTS OF RESIDENTIAL FIXED LINES AND
PAYPHONES 2006
Survey counts of residential fixed lines and payphones are done once in
2 years.
In 2006, 76.6 percent of residential fixed lines were in urban areas as

compared to 74.9 percent in 2004. Conversely 23.4 percent of
residential fixed lines were in the rural areas as compared to
25.1 percent in 2004.
Percentage residential fixed lines subscribers by

urban-rural sector
7 6 .6
7 4 .9

Urban
80.0
Rural
60.0 2 5 .1 2 3 .4
40.0
20.0
0.0
2004 2006
Payphones are concentrated in urban areas accounting for 79.4 percent 25

in 2004 and 82.3 percent in 2006.
Percentage payphones by urban-rural sector
Rural
20.6 Urban
2004 79.4
17.7
2006 82.3
0.0 20.0 40.0 60.0 80.0 100.0

FOR MORE STATISTICS...
WEBSITE The MCMC website contains more statistics
pertaining to the Communications and Multimedia
industry. This is updated every calendar quarter.
The MCMC website is at www.mcmc.gov.my
STATISTICAL The MCMC publishes the following:

BULLETIN 1.Communications & Multimedia: Selected Facts
& Figures, (ISSN:1675-6223), a quarterly
statistical bulletin of the communications &
multimedia industry.
2.Postal & Courier Services: Selected Facts &
Figures (ISSN: 1823-9919) a half yearly
statistical bulletin of the postal & courier
industry.
Contact the MCMC for more details.
STATISTICAL The Statistical Brief series (ISSN:1823-2523) is

BRIEF issued by the MCMC to disseminate survey
findings and statistical updates. These briefs are
aimed at the general to intermediate user
audience.
Titles in this series so far:

Statistical Brief Number One
Statistical Brief Number Two
Household Use of the Internet Survey 2005
Statistical Brief Number Three
26 Hand Phone Users Survey 2005
Statistical Brief Number Four
Hand Phone Users Survey 2006 (this issue)
THE STATISTICS & KNOWLEDGE RESOURCE

DEPARTMENT
DIRECTOR Koay Hock Eng
STATISTICIANS Azilawati Masri

Ng Wai Mun
CONTACTS
For further information about these and related

statistics, contact the following officers:
Koay Hock Eng : +603 8688 8234

hekoay@cmc.gov.my
Azilawati Masri : +603 8688 8235
azilawati@cmc.gov.my
Other titles in the Statistical Brief Series
(ISSN 1823-2523)

27
ABOUT MCMC
The primary role of the Malaysian Communications and Multimedia

Commission is to implement and promote the national policy objectives
for the Communications and Multimedia sector set out in the
Communications and Multimedia Act 1998 (CMA). The MCMC is also
charged with overseeing the new regulatory framework for the
converging industries of the telecommunications, broadcasting and
online activities, as well as postal services and digital certifications.

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© Malaysian Communications and Multimedia Commission 2007

3 From the Chairman

25 Survey counts of residential fixed