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Indonesia - Telecoms, Mobile, Broadband and Forecasts

Indonesia’s crowded mobile market continues rush to embrace mobile broadband

After a period of uncertainty, the Indonesian telecom sector has settled into what looks like a healthy development phase. This country of around 245 million people presents a huge potential market; however, it faces some particularly big challenges that need to be confronted 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 are the crowded operator market, especially the mobile segment, and the slow rate of implementing regulatory decisions. At the same time, on a broader front, there is no avoiding the fact that Indonesia must also continue to deal with a range of social, political and economic issues that have proved 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 has now become the dominant component within the fixed market segment; by 2012 wireless services made up 75% of the total fixed-line subscriber base. The introduction of fixed wireless has also seen a major upturn in fixed subscriber numbers with teledensity reaching 16% early in 2013. Wireless technology has not only boosted the growth rate in the last few years; it has provided much-needed basic telephone services to previously unserved communities. In a short space of five years this technology platform had transformed the fixed-line market in a positive fashion.

Meanwhile, a strong mobile market (penetration of 117% in early 2013) was seeing a possible 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 three years to December 2012 the mobile subscriber base grew from 150 million to 280 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 being offered by the operators and take up of mobile data services is certainly on the rise, as evidenced by a significant surge in the sale of smartphones.

The number of internet users in Indonesia was estimated at 54 million by early 2013, representing a rapidly growing population penetration of 22%. At the same time, the fixed internet subscription market was generally depressed with just 5.5 million subscribers reported by end-2012. Broadband subscriptions are certainly growing but from a low base. The expansion of mobile broadband in particular was offering real promise to the internet market as uptake of new generation services accelerates.

Market highlights:

Indonesia’s mobile market passed 285 million subscribers by March 2013 with penetration running at just over 117%;
After years of strong growth, the annual increase in mobile subscribers had moderated somewhat by 2013 to somewhere around 10%;
The 3G market had got off to a slow start, but by 2012 there were sign of a surge in growth, with sales of smartphones jumping sharply;
Internet user penetration was starting to grow (estimated 22% user penetration by end-2012);
Internet subscription rates were on the increase, boosted by strong uptake of mobile broadband;
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.

Indonesia: - key telecom parameters – 2011 - 2013
Category | 2011 | 2012 | 2013 (e)
Fixed-line services: | | |
Total No. of subscribers | 38.6 million | 38.6 million | 41.0 million
Internet services: | | |
Total No. of fixed internet subscribers | 4.5 million | 5.5 million | 6.5 million
Mobile services: | | |
Total No. of subscribers | 259 million | 284 million | 307 million
(Source: BuddeComm)
Data in this report is the latest available at the time of preparation and may not be for the current year


  • EXECUTIVE SUMMARY
  • KEY STATISTICS
    • Table Country statistics - 2013
    • Table Telephone network statistics - March 2013
    • Table Internet user statistics - 2012
    • Table Broadband statistics - 2012
    • Table Mobile statistics - March 2013
    • Table National telecommunications authorities
  • TELECOMMUNICATIONS MARKET
    • OVERVIEW
    • ECONOMY
      • Table Indonesia's real GDP growth rate - 2006 - 2014
    • 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
    • ANTI-MONOPOLY CASE
    • PRIVATISATION PROCESS
      • Background
      • Foreign ownership
  • MAJOR OPERATORS
    • OVERVIEW
    • OPERATOR STATISTICS
      • Table Major mobile operators and subscribers - 2012
      • Table Mobile subscribers and market share by operator - 2012
      • Table Mobile subscribers and market share by operator - March 2013
      • Table 3G mobile subscribers and market share by operator - March 2013
      • Table Major fixed-line operators - subscribers - 2010 - 2012
      • Table Fixed lines subscribers and annual change by operator - March 2013
    • PT TELKOM INDONESIA
      • Overview
        • Table PT Telkom's subscribers by segment - March 2013
        • Table PT Telkom's capital expenditure (capex) - 2008 - 2012
        • Table PT Telkom - revenue contribution by market segment - 2012
        • Table PT Telkom - revenue contribution by market segment - March 2013
        • Table Major shareholder categories in PT Telkom - December 2011
      • PT Telkomsel / mobile operations
        • Table Telkomsel mobile subscribers - postpaid, prepaid and market share - 1999 - 2013
        • Table Telkomsel: 3G subscribers - 2012 - 2013
        • Table Telkomsel post/prepaid ARPU - 2011
        • Table Telkomsel subscribers - postpaid and prepaid - 2001 - 2012
        • Table Telkomsel prepaid subscribers as proportion of total - 2002; 2004; 2009 - 2012
      • Fixed-line operations
        • Table PT Telkom's total fixed-line subscribers - 2004 - 2013
        • Table PT Telkom's fixed lines in service - wireline v. wireless - 2009 - 2013
        • Table PT Telkom - postpaid and prepaid fixed wireless subscribers - 2012
        • Table PT Telekom - fixed wireless pre and postpaid ARPU - 2004 - 2012
        • Table PT Telkom - fixed wireless subscribers - 2003 - 2013
    • PT INDOSAT
      • Overview
      • Alleged misuse of spectrum
        • Table PT Indosat - revenue and contribution by market segment - 2012
        • Table PT Indosat - revenue contribution by market segment - 2010 - 2012
        • Table Major shareholders in PT Indosat - December 2012
      • Mobile operations
        • Table PT Indosat mobile subscribers - 2005 - 2013
        • Table PT Indosat postpaid and prepaid subscribers - 2012
        • Table PT Indosat postpaid and prepaid ARPU - 2009; 2011 - 2012
        • Table PT Indosat: 3G subscribers - 2012 - 2013
      • Fixed-line operations
        • Table PT Indosat - fixed wireless subscribers - 2006 - 2012
        • Table PT Indosat - fixed wireless - prepaid and postpaid ARPU - 2006 - 2012
    • XL AXIATA (FORMERLY PT EXCELCOMINDO PRATAMA)
      • Overview
      • Operational statistics
        • Table XL Axiata mobile subscribers - 2005 - 2013
        • Table XL Axiata: 3G subscribers - 2012 - 2013
      • 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 - 2012
      • Mobile-8
        • Table Mobile-8 subscribers - 2004 - 2011
      • Smart Telecom
        • Table 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 - 2012
      • Table 3 Indonesia: 3G subscribers - 2012 - 2013
    • PT SATELIT PALAPA INDONESIA (SATELINDO)
    • PT BAKRIE TELECOM
      • Overview
      • Financials
      • Operational statistics
        • Table Bakrie Telecom subscribers - 2004 - 2013
        • Table Bakrie Telecom - postpaid and prepaid fixed wireless subscribers - 2010 - 2012
        • Table Bakrie Telecom's pre and postpaid ARPU - 2004 - 2010; 2012 - 2013
      • Corporate structure
      • Strategic development
  • TELECOMMUNICATIONS INFRASTRUCTURE
    • NATIONAL INFRASTRUCTURE
      • Overview
      • Background to development
      • Fixed-line statistics
        • Table Fixed-line subscribers, annual change and teledensity - 1995 - 2013
        • Table Fixed lines subscribers and annual change by operator - March 2013
        • Table Fixed wireless v. wireline subscribers - March 2013
      • 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 - 2013
        • Table Fixed-wireless (WLL) subscribers by operator - March 2013
        • Table PT Telkom's fixed wireless subscribers - 2003 - 2013
        • Table PT Telkom fixed-line wireless subscribers - prepaid v. postpaid - 2012
        • Table PT Telkom fixed-line subscribers - wireless v. wireline - 2012
      • Telecom towers
    • INTERNATIONAL INFRASTRUCTURE
      • International gateway exchanges
      • Submarine cable networks
      • Satellite networks
        • Table Indonesian satellites - 2012
  • INTERNET MARKET
    • OVERVIEW
      • Market survey
    • INTERNET STATISTICS
      • Table Internet users - 1998 - 2013
      • Table Fixed internet subscribers - 1998 - 2012
      • Table Dial-up internet subscribers - 2004 - 2011
      • Table Total international internet bandwidth - 1998 - 2012
      • Table Households with internet access - 2005 - 2012
    • 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 TelkomNet's dial-up internet subscribers - 2004 - 2011
      • Table IndosatNet's dial-up internet subscribers - 2010 - 2011
    • VOICE OVER INTERNET PROTOCOL (VOIP)
  • BROADBAND MARKET
    • OVERVIEW
      • Broadband statistics
        • Table Fixed broadband subscribers - 2000 - 2012
        • Table DSL subscribers - 2001 - 2012
        • Table Fixed broadband - subscribers and households - 2012
        • Table Mobile broadband subscribers - 2009 - 2012
      • Broadband market background
    • BROADBAND SERVICE PROVIDERS
      • TelkomNet
        • Table PT Telkom's fixed broadband subscribers - 2004 - 2012
        • Table PT Telkom's mobile broadband subscribers - 2011 - 2012
      • Indosat Mega Media (IM2)
      • First Media
    • ID-WIBB
    • DATA CENTRES
    • CLOUD SERVICES
    • HIGH-SPEED BROADBAND (HSBB) PROJECT
    • WIRELESS BROADBAND
      • Background
      • WiFi hotspots
      • WiMAX
      • LTE / Fourth Generation (4G)
    • INTERNET VIA SATELLITE
  • DIGITAL MEDIA / DIGITAL ECONOMY
    • E-SERVICES
      • E-commerce
    • BROADCASTING MARKET
      • Overview
        • Table Key broadcasting statistics - 2012
        • 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
      • Operational statistics
        • Table Mobile subscribers - 1995 - 2013
        • Table Total 3G mobile subscribers - 2009; 2012 - 2013
      • Handset market
    • 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 - 2012
      • Satellite mobile
    • MOBILE DATA SERVICES
      • Short Message Service (SMS)
      • Mobile TV
      • Blackberry
      • Mobile advertising
      • Mobile banking
      • Village Phone Program (VPP)
  • FORECASTS
    • FORECASTS - FIXED-LINE MARKET: 2015; 2020
      • Table Forecast of fixed line subscribers and penetration rates - 2015; 2020
    • FORECASTS - INTERNET SERVICES - 2015; 2020
      • Table Forecast of Internet subscribers and penetration rates - 2015; 2020
    • FORECASTS - MOBILE MARKET: 2015; 2020
      • Table Forecast of mobile subscribers and penetration rates - 2015; 2020

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