There has been considerable energy and turmoil in the Indonesian telecom sector over the last decade. Growth, both in subscriber numbers and in revenues, has been occurring and, more importantly, there are signs that the changes in the regulatory regime and operator restructuring are starting to have a positive effect on the industry. The mobile market has been especially strong and there has been a good response to the launch of 3G networks by five operators. However, there were some signs that the government was hesitating in its efforts to restructure the industry. Indonesia, with its distinctively challenging geographical character, has been working over a long period to put viable and progressive telecom infrastructure in place. When the government launched its Joint Operating Service (KSO) strategy, it had high hopes that this would be the main driver for the development of the national fixed-line telephone network. The KSO program fell well short of expectations. The country has since made a fresh start on the building of its telecom infrastructure. Invigorated by the highly successful mobile segment on the back of increased competition in the marketplace, the country’s telecom industry has found a new dynamic.
This report gives an overview of the market at a time when it seems to have successfully weathered the worst of the country’s economic and social difficulties. Some pertinent statistics are provided for the general telecom sector. The report looks at progress in building infrastructure, in particular the development of the fixed-line network, and describes some of the changes, as the industry picks up momentum again. Scenario forecasts are provided for the fixed-line subscriber market.
Indonesia’s economy continued its run of strong positive growth, with GDP expected to increase by over 6% in 2013/2014;
The mobile market in Indonesia has been growing strongly, but at a more modest rate than previously (around 10% annually);
Fixed wireless, which suffered a setback in 2011 with a declining market, has regained momentum, with almost 80% of total fixed-line market;
Broadband services were growing at around 30% annually;
Almost 70% of internet subscribers had broadband access;
Construction of the US$1.5 billion Palapa Ring optical fibre cable project was continuing.
The launch of PT Telkom’s Telkom 3 satellite in August 2012 was a failure; PT Telkom was looking for a new partner in the Telkom 3 satellite project.
Companies covered in this report include:
PT Telkom; PT Indosat; Bakrie Telecom (BTEL); Qatar Telecom (QTel); PT Satelindo; SingTel; ThaiCom. PT Telkomsel, Mobile-8, Smart Telecom, PT Bakrie Telecom SingTel, Temasek; PT Sarana Menara Nusantara; PT Tower Bersama.
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