Fast Market Research

New Market Report Now Available: Indonesia Telecommunications Report Q1 2014

Fast Market Research recommends "Indonesia Telecommunications Report Q1 2014" from Business Monitor International, now available

Repost This

Boston, MA -- (SBWIRE) -- 12/26/2013 -- Indonesia's telecoms market presents good growth opportunities due to its large and youthful population and extremely low broadband penetration rate. While the mobile industry generates low ARPUs in light of consumers' preference for prepaid subscriptions, and strong competition among operators and from alternatives such as fixed-wireless technologies, operators are stepping up efforts to grow the nascent 3G market. However, although mobile data/VAS revenues are increasing, this is being offset by declining voice revenue.

Key Data

- Indonesia's top three mobile operators - Telekomunikasi Selular (Telkomsel), Indosat and XL Axiata -recorded weak growth in Q213. Consequently, we have downgraded our mobile market forecasts. We now envisage 344.1mn subscribers by end-2017, up from 301.7mn at end-2013.
- The heavy reliance on prepaid subscriptions is reflected by the top three mobile operators, all of which reported sharp sequential declines in blended ARPU in recent quarters. The increasing adoption of 3G services poses an upside risk to our ARPU forecasts, but as 3G services have now been widely available for several years and the boost to revenues and ARPUs has proven limited at best, we are not confident that this view will pan out.
- The fixed-line and fixed broadband sectors continue to show weak growth, and we do not foresee a reversal in the trend given that consumers and businesses are clearly favouring the convenience of mobile solutions and the greater technological advancements.

View Full Report Details and Table of Contents

Key Trends And Developments

The most notable development in H112 was the decision of Attorney General's Office (AGO) to fine IM2 -the internet subsidiary of Indosat - IDR1.36trn for allegedly acquiring part of the 3G spectrum held by its parent and without making the appropriate tax payments to the government. IM2, Indosat, the industry regulator and the government itself deny any sale took place and that, in any case, network sharing agreements are common practice in the industry. The AGO disagrees and warns that it could impose similar fines on as many as 15 ISPs and four or five mobile network operators. If the fines are upheld, many market players would be hit hard financially, making those that survive less inclined to invest in new products and services.

About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at or call us at 1.800.844.8156.

Browse all Fixed Networks research reports at Fast Market Research

You may also be interested in these related reports:

- Turkey Telecommunications Report Q1 2014
- Peru Telecommunications Report Q1 2014
- Chile Telecommunications Report Q1 2014
- Bulgaria Telecommunications Report Q1 2014
- Switzerland Telecommunications Report Q1 2014
- Bosnia-Herzegovina Telecommunications Report Q1 2014
- Czech Republic Telecommunications Report Q1 2014
- Hungary Telecommunications Report Q1 2014
- Central America Telecommunications Report Q1 2014
- Greece Telecommunications Report Q1 2014