Indonesia Telecoms Industry Report 2023-2030 – FTTH Investments Drive Strong Growth in Consumer Fixed Broadband Services – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The “Indonesia Telecoms Industry Report – 2023-2030” report has been added to ResearchAndMarkets.com’s offering.

The Indonesia Telecommunications Industry Report, 2023-2030 includes an overview of the Indonesian market dynamics, market sizing, market forecasts, analysis, insights and key trends.

According to the analyst, 5G mobile subscribers are projected to represent 76% of all subscriptions in Indonesia by 2030. Meanwhile, 4G connections are estimated to account for about 22.4% of all connections, with 2G and 3G representing a minimal share or potentially being phased out.

Major players like Indosat and Telkomsel have already launched 5G services, and subscriber uptake is expected to reach approximately 5.7 million by the end of 2023. By 2030, the Indonesian market is projected to have nearly 300 million 5G subscribers.

The Indonesian telecommunications market thrives as a mobile-centric industry, featuring four large network operators and a dominant fixed-line provider with a near-monopoly. Strong economic fundamentals underpin the overall market, positioning Indonesia as one of the fastest-growing telecom markets globally.

The growth is driven by both mobile and fixed broadband subscriptions, with the analyst forecasting continued strong growth in mobile subscriptions from 2023 to 2030, following a temporary slowdown in 2018. Fixed broadband subscribers will also experience sustained growth, accompanied by an increase in household penetration.

The main drivers of growth in the telecoms sector are expanded coverage, greater affordability, service improvements, increased data usage, and higher smartphone penetration. Indonesia continues to expand its fiber-optic network and 4G coverage through significant capital expenditure investments. The telecoms sector has witnessed rapid investment growth, and this momentum is expected to be maintained throughout the 2023-2030 period.

The analyst predicts strong overall growth in the telecoms market until 2030 with more capital investments required outside of Java, phasing out of 3G nationwide to make room for 4G to all Indonesians.

Capex Investments:

The Capex to GDP ratio has remained relatively stable between 2016 and 2022. Telecommunications operators are investing heavily in expanding their 4G coverage and capacity to meet the growing data demand and smartphone adoption. The analyst projects an average Capex spending growth of 4.4% between 2023 and 2030.

Mobile Subscribers and Revenue:

The mobile subscriber penetration rate experienced a temporary decline in 2018 and 2023 due to new SIM registration requirements and the phasing out of 3G. However, The analyst forecasts a resumption and acceleration of growth of 1.5% during the 2023-2030 forecast period.

Mobile network operators face competitive pressure as the market shifts towards unlimited voice, text, and data offerings. Indonesia’s mobile data pricing is expected to catch up with neighboring countries as 4G coverage accelerates and smartphone penetration increases, especially in regional areas.

Broadband Subscribers – FTTH Push:

The analyst expects sustained broadband subscriber growth driven by household expansion and improved connectivity for previously underserved premises through FTTH services.

The Indonesian fixed broadband market is experiencing strong year-on-year growth and is expected to continue growing from 2023 to 2030, with lower pricing targeting new layers of lower socio-economic with prepaid packaging. The expanding middle-income class in Indonesia, with a growing appetite for high-speed data, is driving fixed broadband adoption and household penetration.

Thematics – Telecoms Infrastructure, 5G, M&A, e-Commerce:

The completion of the Palapa Ring national broadband network has laid the foundation for enhanced connectivity. The arrival of 4G transformed the internet from desktops to handheld devices, while 5G has the potential to revolutionize virtual and augmented reality experiences and autonomous vehicles. The outcomes and benefits of 5G, including business models, investments, and timelines, are yet to be fully understood.

Investment funds are valuing telecommunications infrastructure assets, such as mobile towers, data centers, submarine cables, and fiber infrastructure, with high valuation multiples. The report highlights real market examples and benchmarks to provide insights into investor views and valuations.

Telecommunications operators are heavily investing in both fixed and mobile segments, upgrading their 4G network infrastructure. The analyst expects a wave of consolidation in Indonesia, potentially starting from 2022-2023, driven by squeezed margins and the upcoming 5G Capex cycle.

Increased smartphone penetration, fueled by the availability of affordable devices, has led to significant growth in e-commerce. Leading players like GoJek, Tokopedia, Grab, and Bukalapak dominate e-commerce, ride-sharing, and mobile payments, capitalizing on Indonesia’s emerging middle class with higher disposable income.

Explore the Indonesia Telecoms Industry Report to gain in-depth insights into the market trends, investment opportunities, and the transformative impact of technology on the telecommunications sector in Indonesia.

Key Developments Covered in the Indonesia Telecoms Industry Report:

• Merger of Indosat and Tri Indonesia
• Acquisition of Link Net by XL Axiata
• Consolidation of towecos
• Launch of 5G services
• FTTH investments drive strong growth in consumer fixed broadband services

Key Topics Covered:

1 Key Statistics

1.1 Indonesia’s Population

1.2 Indonesia’s Economy

1.3 Indonesia’s GDP

2 Overall Telecommunications Market, 2016-2030

2.1 Market Overview

2.2 Historical Telecommunications Market Revenue, 2016-2030

2.3 Overall Telecommunications Market Forecast, 2022-2030

2.4 Telecommunications Market Capital Expenditure, 2016-2030

2.4.1 Historical Telecommunications Capex Spend, 2016-2022

2.4.2 Capex to Revenue Benchmark

2.4.3 Capex to GDP Benchmark

2.4.4 Telecommunications Capex Spend Forecast, 2020-2030

3 Telecommunications Operators Profile

3.1 Telkom Indonesia Profile

3.2 Indosat Ooredoo Hutchison Profile

3.3 XL Axiata

3.4 Smartfren Profile

3.5 Other Players Profile

3.5.1 MNC Vision

3.5.2 BizNet

4 Mobile Market

4.1 Mobile Subscribers Historical and Forecast, 2016-2030

4.1.1 Mobile Subscribers Historical, 2016-2022

4.1.2 Mobile Subscribers Market Share, 2016-2023

4.1.3 Indonesia Smartphone Share, 2023

4.1.4 Mobile Subscribers Forecast, 2022-2030

4.1.5 Indonesia Mobile Subscribers by Generation (2G, 3G, 4G & 5G) Forecast, 2022-2030

4.2 Mobile Revenue Historical and Forecast, 2016-2030

4.2.1 Historical Mobile Revenue, 2016-2022

4.2.1 Mobile Revenue Market Share, 2016-2022

4.2.2 Mobile Revenue Forecast, 2022-2030

4.2.3 Mobile Subscribers ARPU, 2016-2022

4.3 Spectrum Holdings

4.3.1 5G Development and Launches

4.3.2 Mobile Frequencies Portfolios Analysis

4.3.3 Spectrum Depth Benchmark by Country

4.4 Mobile Download Data and Pricing Trends

4.5 Mobile Speed Tests

4.5.1 Ookla Mobile Speed Tests

4.5.2 OpenSignal

4.6 Internet of Things (IoT)

5 Broadband Market

5.1 Fixed Broadband Subscribers Historical, 2016-2022

5.2 Fixed Broadband Subscribers Forecast, 2022-2030

6 Fixed Telecommunications Infrastructure Investments

6.1 Fixed Digital Infrastructure

6.1.1 Palapa Ring Completed

6.1.2 FTTH – 20m premises to go

6.1.3 Submarine Cables

7 Indonesia Telecom Towers Infrastructure Landscape

7.1 Indonesia Telecom Towers Market Analysis, 2022

7.2 Indonesia Tower Market Competitive Landscape Comparison

7.3 Indonesia Telecom Towers & Rooftops Market Forecast

7.3.1 Indonesia Telecom Towers and Rooftops, Revenue, Penetration Forecast, 2022-2030

7.3.2 Regulatory Considerations

7.4 Mitratel Profile

7.5 Tower bersama Profile

7.6 Protelindo Profile

7.7 Centratama Menara Profile

7.8 IBS Towers Profile

7.9 Bali Tower Telecom Profile

7.10 Tower Density Benchmark

8 Thematics / Opportunities

8.1 Consolidation Opportunities

8.2 Diversification Opportunities

8.3 New Telecoms Operating Model

8.3.1 The Attraction of Infrastructure Multiples

8.4 5G Developments

8.4.1 5G Overview

8.4.2 5G – Relative Capex Investments and Frequency Range

8.4.3 5G OpenRAN

8.4.4 Beyond 5G and Towards 6G

9 Telco Transaction Database

For more information about this report visit https://www.researchandmarkets.com/r/4eij0d

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