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 150 million in early 2010, up from 85 million just three years earlier. 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 3G, having arrived in 2006, is steadily establishing a market presence.
Key developments:
Some further rationalisation of the local mobile market took place in early 2011 when Mobile 8 merged with Smart Telecom to begin operating under the brand name 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 plans to implement internet filtering in Indonesia in line with government policy; it was understood to be the first time that the company has applied internet filtering in any country. Having lost its final court appeal against the fine imposed for alleged anti-competitive practices in the Indonesia market, Temasek paid the amount due in early 2011, still protesting its innocence.
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.
