Indonesia - Fixed Network Operators

Synopsis

Over the last decade the Indonesian telecom landscape has undergone massive change. With the telecommunications sector experiencing major regulatory restructuring, the two dominant players duly lost their previous monopoly rights. The domestic telephone market, previously the exclusive domain of PT Telkom, was initially opened up with the entry of PT Indosat into this market. Telkom, in turn, started to have an impact on the international call business. Although fixed-line services are playing a secondary role compared with mobile services, the expansion of fixed-wireless networks has been a very significant move that has kept the fixed segment relevant in the marketplace. There are signs that the earlier restructuring of the big telcos and ongoing privatisation push have together started to deliver a positive overall outcome for the industry. This report takes a look at the major players in Indonesia’s fixed-line market.

Key developments:

Market leader PT Telkom continued to grow its fixed-line subscriber base, being heavily reliant on its fixed wireless offering to achieve its expansion; into 2011, having still not built a substantial market presence, PT Indosat was in fact losing fixed subscribers and by mid-year had dropped 50% in a year on its subscriber count. Bakrie Telecom was continuing to grow and by mid-2011 had claimed around 30% of the fixed market.

Companies covered in this report include:

PT Telkom; PT Indosat; Bakrie Telecom (BTEL). Qatar Telecom (QTel); Satelindo.

Table of Contents

• 1. Synopsis
• 2. Major fixed-line players
  • 2.1 PT Telkom Indonesia
    • 2.1.1 Overview
    • 2.1.2 Statistics
    • 2.1.3 Corporate structure and privatisation
    • 2.1.4 Strategic development
    • 2.1.5 Background: the KSO partnerships
  • 2.2 PT Indonesian Satellite Corporation (Indosat)
    • 2.2.1 Overview
    • 2.2.2 Corporate structure and privatisation
    • 2.2.3 Statistics
    • 2.2.4 Fixed-line business
    • 2.2.5 Strategic developments
  • 2.3 PT Satelit Palapa Indonesia (SATELINDO)
  • 2.4 PT Bakrie Telecom
    • 2.4.1 Overview
    • 2.4.2 Statistics
    • 2.4.3 Corporate structure
    • 2.4.4 Strategic development
• 3. Related reports

• Table 1 – Major fixed-line operators - subscribers – 2009 - 2011
• Table 2 – PT Telkom’s fixed-line subscribers – 2004 - 2011
• Table 3 – PT Telkom’s fixed lines in service – 2007 - 2011
• Table 4 – PT Telkom – postpaid and prepaid fixed wireless subscribers – 2010
• Table 5 – PT Telekom – fixed wireless pre and postpaid ARPU – 2004 - 2010
• Table 6 – PT Telkom – revenue contribution by market segment – 2010
• Table 7 – PT Telkom’s subscribers by segment – September 2010
• Table 8 – PT Telkom – fixed wireless subscribers – 2003 – 2011
• Table 9 – PT Indosat – fixed wireless subscribers – 2006 - 2011
• Table 10 – PT Indosat – fixed wireless pre and postpaid ARPU – 2006 - 2010
• Table 11 – PT Indosat – revenue contribution by market segment – 2009 - 2010
• Table 12 – Bakrie Telecom subscribers – 2004 - 2011
• Table 13 – Bakrie Telecom – postpaid and prepaid fixed wireless subscribers – 2009 - 2010
• Table 14 – Bakrie Telecom’s pre and postpaid ARPU – 2004 - 2010

• Exhibit 1 – Major shareholder categoriess in PT Telkom – December 2010
• Exhibit 2 – Major shareholders in PT Indosat – June 2011