In this latest Wellington Perspective, we are examining the status of the Indonesian mobile telecommunications market - with particular emphasis on the near-term outlook for the industry due to the following factors:
The drive towards market consolidation being urged by the Indonesian regulatory body Kominfo
The recent commercial launch of 5G technology by each of the Mobile Network Operators (MNOs)
Despite the disruption caused by the COVID-19 pandemic, the sector is continuing to thrive in 2021 with four mainstream competitors operating in a business environment underpinned by strong economic fundamentals.
Indonesia is one of the fastest-evolving ‘mobile first’ markets in the world, driven by sustained growth in both cellular subscriptions and wireless broadband connections, coupled with the increasing penetration of smartphones (currently reported at c. 75% of the total subscriber base).
The relentless demand for mobile data services (growing at 60% per annum since 2017) further highlights the buoyancy and hyperactive nature of the market.
Meanwhile, the COVID-19 experience has shaped profound - and likely lasting - changes in user behaviour. This phenomenon has in turn prompted fundamental shifts in the response of the MNOs to network deployment, customer care and service packaging.
Continuing expansion of 4G coverage, the rollout of 5G technology, increased service affordability and the creation of pervasive customer-centric experiences - all brought about by competitive pressures - are the main stimulants of growth in the sector.
In addition, the development of the nationwide fibre-optic and satellite network infrastructure is a key focus of the industry regulatory body Kominfo - backed by strong investment in capital expenditure.
And market consolidation will remain a notable feature of the competitive landscape, prompted by a more permissive and inclusive regulatory environment. The recent merger of Indosat Ooredoo and Hutchison Tri - which created the new entity Indosat Ooredoo Hutchison - signals this trend.
We cover all of these topics in more depth as part of the report pack available here
If you would like to discuss any aspect of this report, please feel free to contact us
see also Indonesian Telcos and Video Streaming Providers are Implementing a Market-Based Coopetition Model
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