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Indonesia - Major Telecommunications Operators


Attention: There is an updated edition available for this report.

The mobile market in Indonesia has experienced an exceptional run of boom years. At the same time the mobile operators have been busily positioning themselves as growth rates start to moderate and competition becomes more intense. Market leader Telkomsel continues to maintain a huge presence despite the increased pressure from the competition. To expand their customer bases and build market share, all the operators must offer competitive prices. The shape of the market has certainly undergone change since a number of newer operators, with foreign partners, have entered the market. With 3G services having been launched following a somewhat controversial licensing phase, there has been much interest in how the operators manage the next generation challenge. Although fixed-line services have been very much playing a secondary role compared with mobile services, the expansion of fixed-wireless networks has been a very significant move that has at least kept the fixed segment relevant in the marketplace. The earlier restructuring of the big telcos and ongoing privatisation push have also started to deliver a positive overall outcome for the industry. This report looks at the major operators in Indonesia’s telecommunications market.

Key developments:

Market leader Telkomsel was continuing to grow its mobile subscriber base by around 15%-20% annually;
PT Telkom saw fixed-line subscriber growth stall in 2011 and accelerate again in 2012;
SmartFren expanded its mobile subscriber base by over 40% in 2012, the market’s biggest percentage increase;
The Attorney General’s Office (AGO) was investigating PT Indosat for allegedly avoiding paying taxes;
PT Indosat continued to lose fixed subscribers, placing it well behind Telkom and Bakrie in this market;
Bakrie Telecom was struggling financially in 2012 and into 2013, providing a major distraction from its operational activities;
Reports suggested that there was a possible acquisition of Axis Telecom by Malaysia’s Axiata.

Companies covered in this report include:

PT Telkom; PT Telkomsel; PT Indosat; PT Satelindo; IM3 Indosat; Bakrie Telecom (BTEL). Qatar Telecom (QTel); XL Axiata; PT Hutchison CP; SmartFren; Mobile 8; Smart Telecom; PT Natrindo Telepon Selular (NTS); SingTel; Temasek; QTel.


1. Synopsis
2. Major operators
2.1 Overview
2.2 Operator statistics
3. PT Telkom Indonesia
3.1 Overview
3.1.1 Financials
3.1.2 Corporate structure and privatisation
3.2 PT Telkomsel / mobile operations
3.2.1 Overview
3.2.2 ‘Bankruptcy’ fiasco
3.2.3 Mobile statistics
3.2.4 Business strategies
3.2.5 Development of products and services
3.3 Fixed-line operations
3.3.1 Overview
3.3.2 Fixed-line statistics
3.3.3 Strategic development
3.3.4 Background: the KSO partnerships
4. PT Indosat
4.1 Overview
4.2 Alleged misuse of spectrum
4.2.1 Developments
4.2.2 Financials
4.2.3 Corporate structure
4.3 Mobile operations
4.3.1 Mobile subsidiaries
4.3.2 Mobile statistics
4.3.3 Business and strategies
4.3.4 Third Generation (3G) services
4.4 Fixed-line operations
4.4.1 Overview
4.4.2 Fixed-line statistics
5. XL Axiata (formerly PT Excelcomindo Pratama)
5.1 Overview
5.2 Operational statistics
5.3 Financials
5.4 Corporate structure
5.5 Business and network strategies
5.5.1 Overview
5.5.2 Third Generation (3G) services
6. PT Sampoerna Telekomunikasi Indonesia (STI)
7. PT SmartFren Telecom
7.1 Overview
7.2 Mobile-8
7.3 Smart Telecom
8. Axis (formerly Natrindo Telepon Selular)
8.1 Overview
8.2 Business developments including 3G
8.3 Corporate structure
9. PT Hutchison CP / 3 Indonesia
10. PT Satelit Palapa Indonesia (SATELINDO)
11. PT Bakrie Telecom
11.1 Overview
11.2 Financials
11.3 Operational statistics
11.4 Corporate structure
11.5 Strategic development
12. Related reports
Table 1 – Major mobile operators and subscribers – 2012
Table 2 – Mobile subscribers and market share by operator – 2012
Table 3 – Mobile subscribers and market share by operator – March 2013
Table 4 – 3G mobile subscribers and market share by operator – March 2013
Table 5 – Major fixed-line operators - subscribers – 2010 - 2012
Table 6 – Fixed lines subscribers and annual change by operator – March 2013
Table 7 – PT Telkom’s subscribers by segment – March 2013
Table 8 – PT Telkom’s capital expenditure (capex) – 2008 - 2012
Table 9 – PT Telkom – revenue contribution by market segment – 2012
Table 10 – PT Telkom – revenue contribution by market segment – March 2013
Table 11 – Telkomsel mobile subscribers – postpaid, prepaid and market share – 1999 - 2013
Table 12 – Telkomsel: 3G subscribers – 2012 – 2013
Table 13 – Telkomsel post/prepaid ARPU – 2011
Table 14 – Telkomsel subscribers – postpaid and prepaid – 2001 - 2012
Table 15 – Telkomsel prepaid subscribers as proportion of total – 2002; 2004; 2009 - 2012
Table 16 – PT Telkom’s total fixed-line subscribers – 2004 - 2013
Table 17 – PT Telkom’s fixed lines in service – wireline v. wireless - 2009 - 2013
Table 18 – PT Telkom – postpaid and prepaid fixed wireless subscribers – 2012
Table 19 – PT Telekom – fixed wireless pre and postpaid ARPU – 2004 – 2012
Table 20 – PT Telkom – fixed wireless subscribers – 2003 – 2013
Table 21 – PT Indosat – revenue and contribution by market segment – 2012
Table 22 – PT Indosat – revenue contribution by market segment – 2010 - 2012
Table 23 – PT Indosat mobile subscribers – 2005 - 2013
Table 24 – PT Indosat postpaid and prepaid subscribers – 2012
Table 25 – PT Indosat postpaid and prepaid ARPU – 2009; 2011 - 2012
Table 26 – PT Indosat: 3G subscribers – 2012 - 2013
Table 27 – PT Indosat – fixed wireless subscribers – 2006 - 2012
Table 28 – PT Indosat – fixed wireless - prepaid and postpaid ARPU – 2006 - 2012
Table 29 – XL Axiata mobile subscribers – 2005 - 2013
Table 30 – XL Axiata: 3G subscribers – 2012 – 2013
Table 31 – PT Sampoerna (STI) subscribers – 2007 - 2009
Table 32 – SmartFren subscribers – 2010 - 2012
Table 33 – Mobile-8 subscribers – 2004 - 2011
Table 34 – Smart Telecom subscribers – 2007 - 2011
Table 35 – Axis Indonesia mobile subscribers – 2008 - 2013
Table 36 – Axis Indonesia: 3G subscribers – 2012 - 2013
Table 37 – 3 Indonesia subscribers – 2007 - 2012
Table 38 – 3 Indonesia: 3G subscribers – 2012 – 2013
Table 39 – Bakrie Telecom subscribers – 2004 - 2013
Table 40 – Bakrie Telecom – postpaid and prepaid fixed wireless subscribers – 2010 - 2012
Table 41 – Bakrie Telecom’s pre and postpaid ARPU – 2004 – 2010; 2012 - 2013
Chart 1 – Mobile subscribers and market share by operator – 2012
Chart 2 - Mobile subscribers and market share by operator - March 2013
Chart 3 - 3G mobile subscribers and market share by operator - March 2013
Chart 4 - PT Telkom - revenue contribution by market segment - March 2013
Chart 5 - Telkomsel mobile subscribers and market share - 2005 – 2013
Chart 6 - PT Telkoms total fixed line subscribers and annual change - 2005 – 2013
Exhibit 1 – Major shareholder categories in PT Telkom – December 2011
Exhibit 2 – Major shareholders in PT Indosat – December 2012

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