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Home > Communications > Telecommunications > General Telecom
Indonesia Telecommunications Report Q1 2008
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The arrival of an increasing number of CDMA operators to Indonesia’s telecoms market has impacted onthe fixed-line and mobile sectors. Aside from the entrance of Mobile-8 and Bakrie Telecom, in 2007,Hutchison Telecom launched its brand ‘3’, while Smart Telecom also announced its intentions tocommence services commercially by the end of 2007. Hutchison Telecom began its services during thefirst half of 2007, to end with a strong mobile subscriber base of a little over 1mn. This exceeded themarket and the operator’s expectations, given how growth has been slow in the mobile sector thanks tohigh tariffs. Perhaps on the basis of Hutchison Telecom’s positive customer growth, Smart Telecom hasannounced a target subscriber base of 1.4mn by YE07.
Growth in the mobile sector has largely been driven not only by new competition, but also through theaggressive network expansion plans of recent operators to Indonesia. Now with some seven mobileoperators, in the first six months of 2007, there were 13.4mn net additions, representing growth of 20.4%.However, with the country still retaining one of the highest tariffs in the world, it would also appear thatmobile growth is being driven by fixed wireless services, ideally suited to CDMA networks. Indeed,Bakrie Telecom’s fixed wireless access (FWA) service Esia reported annual subscriber growth of 127.6%y-o-y, while the FWA services of Telkom and Indosat enjoyed subscriber growth of 57% y-o-y and132.2% y-o-y respectively.
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