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. It still claims over 40% of the total subscriber base. To expand 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, 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. In 2013/2014 saw a particularly important acquisition by XL Axiata of the smaller mobile rival Axis Telecom. This report looks at the major operators in Indonesia’s telecommunications market.
- Market leader Telkomsel was continuing to maintain its mobile subscriber base at around 42% market share;
- PT Telkom saw fixed-line subscriber numbers drop dramatically in 2013;
- SmartFren, after expanding its mobile subscriber base by over 40% in 2012, grew more modestly in 2013/2014;
- PT Indosat was struggling to hold its mobile subscribers, falling well behind Telkomsel and Axiata in that market;
- PT Indosat also continued to lose fixed-line subscribers, placing it well behind both Telkom and Bakrie;
- Bakrie Telecom’s financial position remained a problem in 2013 and into 2014, despite managing to grow its subscriber numbers;
- Axis Telecom was acquired by Malaysia’s Axiata, giving XL Axiata’s subscriber numbers a major boost.
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.