Indonesia - Major Telecommunications Operators

Synopsis

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.

Key developments:

  • 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.

Table of Contents

  • 1. Synopsis
  • 2. Major operators
    • 2.1 Overview
    • 2.2 Operator statistics
  • 3. PT Telkom Indonesia
    • 3.1 Overview
      • 3.1.1 Financials
      • 3.1.2 Corporate structure and privatisation
    • 3.2 PT Telkomsel / mobile operations
      • 3.2.1 Overview
      • 3.2.2 ‘Bankruptcy’ fiasco
      • 3.2.3 Mobile statistics
      • 3.2.4 Business strategies
      • 3.2.5 Development of products and services
    • 3.3 Fixed-line operations
      • 3.3.1 Overview
      • 3.3.2 Fixed-line statistics
      • 3.3.3 Strategic development
      • 3.3.4 Background: the KSO partnerships
  • 4. PT Indosat
    • 4.1 Overview
    • 4.2 Alleged misuse of spectrum
      • 4.2.1 Developments
      • 4.2.2 Financials
      • 4.2.3 Corporate structure
    • 4.3 Mobile operations
      • 4.3.1 Mobile subsidiaries
      • 4.3.2 Mobile statistics
      • 4.3.3 Business and strategies
      • 4.3.4 Third Generation (3G) services
    • 4.4 Fixed-line operations
      • 4.4.1 Overview
      • 4.4.2 Fixed-line statistics
  • 5. XL Axiata (formerly PT Excelcomindo Pratama)
    • 5.1 Overview
    • 5.2 Operational statistics
    • 5.3 Financials
    • 5.4 Corporate structure
    • 5.5 Business and network strategies
      • 5.5.1 Overview
      • 5.5.2 Third Generation (3G) services
  • 6. PT Sampoerna Telekomunikasi Indonesia (STI)
  • 7. PT SmartFren Telecom
    • 7.1 Overview
    • 7.2 Mobile-8
    • 7.3 Smart Telecom
  • 8. Axis (formerly Natrindo Telepon Selular)
    • 8.1 Overview
    • 8.2 Business developments including 3G
    • 8.3 Corporate structure
  • 9. PT Hutchison CP / 3 Indonesia
  • 10. PT Satelit Palapa Indonesia (SATELINDO)
  • 11. PT Bakrie Telecom
    • 11.1 Overview
    • 11.2 Financials
    • 11.3 Operational statistics
    • 11.4 Corporate structure
    • 11.5 Strategic development
  • 12. Related reports
  • Table 1 – Major mobile operators and subscribers – 2012
  • Table 2 – Mobile subscribers and market share by operator – 2012
  • Table 3 – Mobile subscribers and market share by operator – March 2013
  • Table 4 – 3G mobile subscribers and market share by operator – March 2013
  • Table 5 – Major fixed-line operators - subscribers – 2010 - 2012
  • Table 6 – Fixed lines subscribers and annual change by operator – March 2013
  • Table 7 – PT Telkom’s subscribers by segment – March 2013
  • Table 8 – PT Telkom’s capital expenditure (capex) – 2008 - 2012
  • Table 9 – PT Telkom – revenue contribution by market segment – 2012
  • Table 10 – PT Telkom – revenue contribution by market segment – March 2013
  • Table 11 – Telkomsel mobile subscribers – postpaid, prepaid and market share – 1999 - 2013
  • Table 12 – Telkomsel: 3G subscribers – 2012 – 2013
  • Table 13 – Telkomsel post/prepaid ARPU – 2011
  • Table 14 – Telkomsel subscribers – postpaid and prepaid – 2001 - 2012
  • Table 15 – Telkomsel prepaid subscribers as proportion of total – 2002; 2004; 2009 - 2012
  • Table 16 – PT Telkom’s total fixed-line subscribers – 2004 - 2013
  • Table 17 – PT Telkom’s fixed lines in service – wireline v. wireless - 2009 - 2013
  • Table 18 – PT Telkom – postpaid and prepaid fixed wireless subscribers – 2012
  • Table 19 – PT Telekom – fixed wireless pre and postpaid ARPU – 2004 – 2012
  • Table 20 – PT Telkom – fixed wireless subscribers – 2003 – 2013
  • Table 21 – PT Indosat – revenue and contribution by market segment – 2012
  • Table 22 – PT Indosat – revenue contribution by market segment – 2010 - 2012
  • Table 23 – PT Indosat mobile subscribers – 2005 - 2013
  • Table 24 – PT Indosat postpaid and prepaid subscribers – 2012
  • Table 25 – PT Indosat postpaid and prepaid ARPU – 2009; 2011 - 2012
  • Table 26 – PT Indosat: 3G subscribers – 2012 - 2013
  • Table 27 – PT Indosat – fixed wireless subscribers – 2006 - 2012
  • Table 28 – PT Indosat – fixed wireless - prepaid and postpaid ARPU – 2006 - 2012
  • Table 29 – XL Axiata mobile subscribers – 2005 - 2013
  • Table 30 – XL Axiata: 3G subscribers – 2012 – 2013
  • Table 31 – PT Sampoerna (STI) subscribers – 2007 - 2009
  • Table 32 – SmartFren subscribers – 2010 - 2012
  • Table 33 – Mobile-8 subscribers – 2004 - 2011
  • Table 34 – Smart Telecom subscribers – 2007 - 2011
  • Table 35 – Axis Indonesia mobile subscribers – 2008 - 2013
  • Table 36 – Axis Indonesia: 3G subscribers – 2012 - 2013
  • Table 37 – 3 Indonesia subscribers – 2007 - 2012
  • Table 38 – 3 Indonesia: 3G subscribers – 2012 – 2013
  • Table 39 – Bakrie Telecom subscribers – 2004 - 2013
  • Table 40 – Bakrie Telecom – postpaid and prepaid fixed wireless subscribers – 2010 - 2012
  • Table 41 – Bakrie Telecom’s pre and postpaid ARPU – 2004 – 2010; 2012 - 2013
  • Chart 1 – Mobile subscribers and market share by operator – 2012
  • Chart 2 - Mobile subscribers and market share by operator - March 2013
  • Chart 3 - 3G mobile subscribers and market share by operator - March 2013
  • Chart 4 - PT Telkom - revenue contribution by market segment - March 2013
  • Chart 5 - Telkomsel mobile subscribers and market share - 2005 – 2013
  • Chart 6 - PT Telkom's total fixed line subscribers and annual change - 2005 – 2013
  • Exhibit 1 – Major shareholder categories in PT Telkom – December 2011
  • Exhibit 2 – Major shareholders in PT Indosat – December 2012

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