Synopsis
This report describes the booming Indonesian mobile telephone market. Indonesia’s mobile market has grown rapidly in recent years, with the number of subscribers passing 260 million by early 2012, up by almost 200 million from just five years earlier. Despite penetration being around 110%, there is still considerable opportunity for expansion in Indonesia’s mobile market when compared with some of its Asian neighbours. With much happening that is positive, a range of structural and economic issues must also be confronted if the local telecom industry is to cope with the expanding market. For strong growth to continue, the sector must take advantage of the government’s regulatory changes and continue to find ways of attracting foreign capital into the market place. Value-added services have become important and the arrival of 3G has seen this technology establish a particularly strong market presence.
Key developments:
Some further rationalisation of the local mobile market took place in 2011 when Mobile 8 merged with Smart Telecom to create SmartFren. Market research indicates that 70% of Indonesia’s teenagers had a mobile phone and that penetration in the 10-14 years group had grown five times in as many years. Blackberry’s RIM announced it was implementing internet filtering in Indonesia in line with government policy; however, the government was opposing RIM’s planned ‘local’ server being located outside of Indonesia; overall 3G penetration in Indonesia jumped to 21% in 2011 (almost 55 million 3G services).
Companies covered in this report include:
PT Telkomsel, PT Telkom; PT Indosat; PT Satelindo, IM3 Indosat, XL Axiata, PT Hutchison CP, SmartFren1, Mobile 8, Smart Telecom, PT Natrindo Telepon Selular (NTS), SingTel, Temasek, QTel.
