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Indonesia - Telecoms, Mobile and Broadband

  • EXECUTIVE SUMMARY
  • KEY STATISTICS
    • Table Country statistics - 2014
    • Table Telephone network statistics - 2014
    • Table Internet user statistics - 2014
    • Table Broadband statistics - 2014
    • Table National telecommunications authorities
    • Table Mobile statistics - 2014
  • TELECOMMUNICATIONS MARKET
    • OVERVIEW
    • ECONOMY
      • Table Indonesia's real GDP growth rate - 2006 - 2015
    • BACKGROUND TO DEVELOPMENT
    • MARKET GROWTH
      • Mobile sector
      • Fixed-line services
      • Broadband
      • Other
  • REGULATORY ENVIRONMENT
    • BACKGROUND
      • Telecommunications Law 1989
      • Telecommunications Law 2000
      • Cross shareholdings
      • Ministry of Communication and Informatics (MoCI)
    • CORRUPTION
    • REGULATORY DEVELOPMENTS
      • SMS spam
      • AT&T licence
      • Control of the internet
      • Price fixing
      • Spectrum
        • Table Frequency spectrum overview - major mobile operators - December 2014
    • ANTI-MONOPOLY CASE
    • PRIVATISATION PROCESS
      • Background
      • Foreign ownership
  • MAJOR OPERATORS
    • OVERVIEW
    • OPERATOR STATISTICS
      • Table Major mobile operators and subscribers - 2014
      • Table Mobile subscribers and market share by operator - 2014
      • Table Mobile subscribers and market share by operator - 2012
      • Table 3G mobile subscribers and market share by operator - March 2013
      • Table Major fixed-line operators - subscribers - 2010 - 2014
      • Table Fixed lines subscribers and annual change by operator - 2014
    • PT TELKOM INDONESIA
      • Overview
        • Table PT Telkom - major shareholder groups - December 2014
        • Table PT Telkom's subscribers by segment - 2014
        • Table PT Telkom's capital expenditure (capex) - 2008 - 2015
        • Table PT Telkom - revenue contribution by market segment - 2014
        • Table PT Telkom - revenue contribution by market segment - 2013
        • Table Major shareholder categories in PT Telkom - December 2014
      • PT Telkomsel / mobile operations
        • Table Telkomsel mobile subscribers - postpaid, prepaid and market share - 1999 - 2014
        • Table Telkomsel: 3G subscribers - 2012 - 2013
        • Table Telkomsel's mobile broadband subscribers - 2011 - 2014
        • Table Telkomsel subscribers - postpaid and prepaid - 2001 - 2014
        • Table Telkomsel prepaid subscribers as proportion of total - 2002; 2004; 2009 - 2014
      • Fixed-line operations
        • Table PT Telkom's total fixed-line subscribers - 2004 - 2014
        • Table PT Telkom: - fixed lines in service - wireline v. wireless - 2009 - 2014
        • Table PT Telkom - postpaid and prepaid fixed wireless subscribers - 2012
        • Table PT Telekom - fixed wireless pre and postpaid ARPU - 2004 - 2013
        • Table PT Telkom's fixed broadband subscribers - 2012 - 2014
        • Table PT Telkom - fixed wireless subscribers - 2003 - 2014
      • IPTV
    • PT INDOSAT
      • Overview
      • Business developments
      • Financials
        • Table PT Indosat - revenue and contribution by market segment - 2013
        • Table PT Indosat - revenue and contribution by market segment - 2014
        • Table PT Indosat - revenue contribution by market segment - 2010 - 2014
      • Corporate structure
        • Table Major shareholders in PT Indosat - December 2014
      • Mobile operations
        • Table PT Indosat mobile subscribers - 2005 - 2014
        • Table PT Indosat postpaid and prepaid mobile subscribers - 2014
        • Table PT Indosat postpaid and prepaid mobile ARPU - 2011 - 2014
        • Table PT Indosat: 3G subscribers - 2012 - 2013
      • Fixed-line operations
        • Table PT Indosat - fixed wireless subscribers - 2006 - 2014
        • Table PT Indosat - fixed wireless - prepaid and postpaid ARPU - 2006 - 2013
    • XL AXIATA (FORMERLY PT EXCELCOMINDO PRATAMA)
      • Overview
      • Developments
      • Axiata's acquisition of Axis
      • Operational statistics
        • Table XL Axiata mobile subscribers - 2005 - 2014
        • Table XL Axiata -mobile subscribers - postpaid v. prepaid - 2013 - 2014
        • Table XL Axiata: 3G subscribers - 2012 - 2013
        • Table XL Axiata: blended ARPU - 2012 - 2014
        • Table XL Axiata: SMS volumes - 2013 - 2014
      • Financials
      • Corporate structure
      • Business and network strategies
    • PT SAMPOERNA TELEKOMUNIKASI INDONESIA (STI)
      • Table PT Sampoerna (STI) subscribers - 2007 - 2009
    • PT SMARTFREN TELECOM
      • Overview
        • Table SmartFren subscribers - 2010 - 2014
      • Mobile-8
        • Table Historical -Mobile-8 subscribers - 2004 - 2011
      • Smart Telecom
        • Table Historical - Smart Telecom subscribers - 2007 - 2011
    • AXIS (FORMERLY NATRINDO TELEPON SELULAR)
      • Overview
        • Table Axis Indonesia mobile subscribers - 2008 - 2013
        • Table Axis Indonesia: 3G subscribers - 2012 - 2013
      • Business developments including 3G
      • Corporate structure
    • PT HUTCHISON CP / 3 INDONESIA
      • Table 3 Indonesia subscribers - 2007 - 2014
      • Table 3 Indonesia: 3G subscribers - 2012 - 2013
    • PT SATELIT PALAPA INDONESIA (SATELINDO)
    • PT BAKRIE TELECOM
      • Overview
      • Financials
      • Operational statistics
        • Table Bakrie Telecom subscribers - 2004 - 2014
        • Table Bakrie Telecom - postpaid and prepaid fixed wireless subscribers - 2011 - 2014
        • Table Bakrie Telecom - subscribers - voice v. data - March 2014
        • Table Bakrie Telecom's pre and postpaid ARPU - 2004 - 2014
      • Corporate structure
      • Strategic development
    • BOLT
  • TELECOMMUNICATIONS INFRASTRUCTURE
    • NATIONAL INFRASTRUCTURE
      • Overview
      • Government initiative - March 2015
      • Fixed-line statistics
        • Table Fixed-line subscribers, annual change and teledensity - 1995 - 2014
        • Table Fixed lines subscribers and annual change by operator - 2013
        • Table Fixed lines subscribers and annual change by operator - 2014
        • Table Fixed wireless v. wireline subscribers - 2014
      • Forecasts - fixed-line market: 2015; 2020
        • Table Forecast of fixed line subscribers and penetration rates - 2015; 2020
      • Infrastructure development
        • Table Palapa Ring Project - specification of rings
      • Joint operating service (KSO) ventures - five-zone plan
      • Rural telephony
        • Table Planned five-year USO deployment of lines for villages - 2006 - 2010
      • Wireless Local Loop (WLL)
        • Table Fixed-wireless (WLL) subscribers - 2003; 2007 - 2014
        • Table Fixed-wireless (WLL) subscribers by operator - 2013 - 2014
        • Table PT Telkom's fixed wireless subscribers - 2003 - 2014
        • Table PT Telkom fixed-line wireless subscribers - prepaid v. postpaid - 2012
        • Table PT Telkom fixed-line subscribers - wireless v. wireline - 2013
      • Telecom towers
    • INTERNATIONAL INFRASTRUCTURE
      • International gateway exchanges
      • Submarine cable networks
      • Satellite networks
        • Table Indonesian satellites - 2013
  • INTERNET MARKET
    • OVERVIEW
    • BACKGROUND
      • Market survey
    • INTERNET STATISTICS
      • Table Internet users - 1998 - 2015
      • Table Internet users - 2005 - 2015; 2017
      • Table Fixed internet subscribers - 1998 - 2014
      • Table Dial-up internet subscribers - 2004 - 2013
      • Table Total international internet bandwidth - 1998 - 2014
      • Table Households with internet access - 2005 - 2014
    • FORECASTS - INTERNET SERVICES - 2015; 2020
      • Table Forecast of fixed broadband subscribers and penetration rates - 2015; 2020
    • SOCIAL NETWORKING
    • REGULATORY DEVELOPMENTS
      • Indonesian Internet Agency (LII)
      • Domain names
        • Table Domain name registrations - June 2010
      • Internet information control and the `cyber' laws
    • INTERNET INFRASTRUCTURE
      • Telkom's national IP backbone
    • ISP MARKET
      • Table Internet licences by licence type - 2007
      • Table Historical - TelkomNet's dial-up internet subscribers - 2004 - 2011
      • Table Historical - IndosatNet's dial-up internet subscribers - 2010 - 2011
  • BROADBAND MARKET
    • OVERVIEW
      • Broadband statistics
        • Table Fixed broadband subscribers - 2000 - 2014
        • Table DSL subscribers - 2001 - 2014
        • Table Fixed broadband - subscribers and households - 2014
        • Table Mobile broadband subscribers - 2009 - 2014
      • Broadband market background
    • BROADBAND SERVICE PROVIDERS
      • TelkomNet
        • Table PT Telkom's fixed broadband subscribers - 2004 - 2014
        • Table PT Telkom's mobile broadband subscribers - 2011 - 2014
      • Indosat Mega Media (IM2)
      • First Media / LinkNet
      • MNC Kabel Mediacom
      • Biznet/max3
    • ID-WIBB
    • DATA CENTRES
    • CLOUD SERVICES
    • HIGH-SPEED BROADBAND (HSBB) PROJECT
      • TITO (Trade In Trade Off) Access Modernization Project
    • WIRELESS BROADBAND
      • Background
      • WiFi hotspots
      • WiMAX - background
      • LTE / Fourth Generation (4G)
    • INTERNET VIA SATELLITE
    • E-SERVICES
      • E-commerce
    • VOICE OVER INTERNET PROTOCOL (VOIP)
  • DIGITAL MEDIA / DIGITAL ECONOMY
    • BROADCASTING MARKET
      • Overview
        • Table Key broadcasting statistics - 2014
        • Table Broadcasting sector, TV households and home satellites - 1997 - 2012
      • Regulatory environment
      • Free-to-Air (FTA) TV
        • Table Major FTA television broadcasters, ownership, launch date and coverage
        • Table Television audience share by operator - 2012
      • Cable and pay TV
        • Table Pay TV subscribers - cable and satellite - 2001 - 2011
        • Table TelkomVision subscribers - 2007 - 2011
      • Satellite TV
      • Internet Protocol TV (IPTV)
      • Mobile TV
  • MOBILE COMMUNICATIONS
    • OVERVIEW OF INDONESIA'S MOBILE MARKET
      • Handset market
      • Spectrum
    • OPERATIONAL STATISTICS
      • Table Mobile subscribers - 1995 - 2015
      • Table Total 3G mobile subscribers - 2009; 2012 - 2013
    • FORECASTS - MOBILE MARKET: 2015; 2020
      • Table Forecast of mobile subscribers and penetration rates - 2015; 2020
    • BACKGROUND TO MARKET DEVELOPMENT
      • Foreign ownership regulations
      • Temasek and anti-monopoly ruling
    • MOBILE TECHNOLOGIES
      • GSM
      • Code Division Multiple Access (CDMA)
    • THIRD GENERATION (3G) MOBILE
      • Background and initial licensing process
      • Second 3G auction
      • Launch of 3G services
      • Expansion and marketing of 3G services
        • Table 3G mobile operators and subscribers - March 2013
      • Further auction of 3G spectrum
    • 4G / LONG TERM EVOLUTION (LTE) SERVICES
    • MOBILE VOICE SERVICES
      • Prepaid
        • Table Prepaid subscribers - selected mobile operators -2014
      • Satellite mobile
    • MOBILE DATA SERVICES
      • Table Smartphone users and penetration - 2011 - 2015
      • Short Message Service (SMS)
      • Mobile TV
      • Blackberry
      • Mobile advertising
      • Mobile banking
      • Village Phone Program (VPP)
      • M2M
      • Near Field Communication (NFC)

Indonesia - Telecoms, Mobile and Broadband

Indonesia continues to embrace mobile broadband

After a period of uncertainty, the Indonesian telecom sector has settled into what looks to be a steady development phase. This country of around 250 million people presents a huge potential market; however, it must overcome some particularly big challenges if it is to successfully continue the building of the telecommunications infrastructure required to support a large population spread over what is a uniquely complex geography. Two of the more significant challenges have been the crowded operator market, especially the mobile segment, and the slow rate of implementing regulatory decisions. The market has finally started to see some serious consolidation, with a number of operator mergers happening. On a broader front, beyond the telecom sector itself, there is no avoiding the fact that Indonesia must also continue to deal with a range of social, political and economic issues that have proven problematic over the years.

The embracing of fixed-wireless technology, after an early stumbling start to building the country’s fixed-line network, provided a fresh basis for expansion. Wireless became the dominant component within the fixed market segment; by 2012 wireless services made up 75% of the total fixed-line subscriber base. Then in 2013 the fixed-line market segment suffered a major setback with a huge decline in the wireless subscriptions. In a short space of five years the wireless technology platform had transformed the fixed-line market in a positive fashion and then suffered a major setback.

Meanwhile, a strong mobile market (penetration of over 130% at the start of 2015) was seeing a moderation in its growth rate. While the global financial crisis saw expansion in mobile subscriber numbers slow somewhat back in 2009, the market did not lose much momentum overall. In the four years to December 2013 the mobile subscriber base grew from 150 million to 300 million. As penetration passed the important 100% milestone, there was still considerable potential for further growth in the market. Consumer interest has started to shift to the 3G services and, more recently, the 4G/LTE services being offered by the operators. The take up of mobile data services is certainly on the rise, as evidenced by a significant surge in the sale of smartphones.

Estimates for the number of internet users in Indonesia vary considerably; in any case there is definitely a rapidly growing internet user population. At the same time, the fixed internet subscription market was generally depressed. Nevertheless, broadband subscriptions are now growing, but from a low base. The expansion of mobile broadband in particular was compensating to a significant extent for the sluggish fixed broadband market and offering real promise for increased online activity as the uptake of new generation mobile services accelerates.

Key developments:

The mobile market in Indonesia has been growing strongly, but at a more modest rate than previously (just under 10% annually);
The fixed line market (wireless and wireline) continues to suffer setbacks, with a rapidly declining subscriber base;
Broadband services are finally starting to grow, boosted by surging mobile broadband;
The mobile broadband explosion has subscriber numbers at around 65 million (26% penetration) by end-2014;
Around 60% of fixed internet subscribers had broadband access;
Data traffic is growing quickly and forecast to expand six-fold, from 84EB in 2014 to 656EB by 2020;
Surge in demand for data traffic sees operators increasing system capacity;
The government’s initiative on national infrastructure will push for fibre and 4G coverage nationwide;
Both Telkom and Indosat have been expanding the number of WiFi hotspots around the country;
TD-LTE wireless broadband operator Internux, trading as ‘Bolt’, reported that it had signed up 750,000 customers in the first ten months since its commercial launch in Jakarta;
Telkomsel and XL Axiata both launched 4G/LTE services commercially in December 2014;
In early 2015 SmartFren was looking to upgrade of its CDMA 3G network to 4G/LTE;
Market leader Telkomsel was continuing to dominate the mobile market, with its mobile subscriber base of around 45% market share;
Indosat was assigned a 4G concession in early 2015 allowing it to use frequencies of 800MHz, 900MHz and 1800MHz;
PT Indosat, battling with Axiata for second place in the mobile market well behind Telkomsel, saw strong growth in 2014 to put it firmly in second place.

Companies mentioned in this report

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; Bolt/Internux.


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