Indonesia Telecommunications Report Q2 2016
BMI View: The government's announcement that it will focus on developing fixed broadband networks in2016 with the aim to become ASEAN's second largest IT market by 2019 will lead to improved fixedbroadband infrastructure. However, geographical barriers due to Indonesia's archipelagic nature and highrollout costs will pose downside risks to this. Efficiencies in 4G will be gained through network andinfrastructure sharing that will boost LTE rollout speeds and reduce costs. However, we foresee downsiderisks to take-up as the new minimum local content requirements on LTE-enabled devices could have theeffect of increasing production costs and, consequently, the price of smartphones.
Latest Updates & Industry Developments
Total subscriptions in the mobile sector grew to 318.44mn in Q315, for a penetration of 124.5%.Amid market saturation, mobile operators will aim to reverse downward trending ARPUs by migratingsubscribers on to postpaid plans and higher value services.
Fixed broadband subscribers will grow by 18.3% in 2016 to reach 9.00mn, and this number isexpected to rise to 15.76mn in 2020. However, penetration will still remain low at 5.8% as costs andtopological factors limit expansion speed.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook