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.
- 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.