Indonesia Telecommunications Market Report

... A look at the composition of leading Indonesian telecoms operator Telkom’s revenues tells the story of the local market. Whilst fixed revenues contributed 40% of the telco’s income in 2001, today this figure stands at about 20%. Meanwhile, the operator’s mobile unit now contributes 40% of revenues, whilst 16.5% are now accounted for by data and internet services. This represents quite a switch in consumer demand towards the popularity of wireless, voice and, increasingly, non-voice value added services, and even high-speed broadband internet access. Despite these positives, growth is not as it might be in Indonesia’s telecoms market (and certainly not in the fixed-line sector), whilst even the rise of the mobile market in 2006 has been a little disappointing. It points to a weak infrastructure, investor concerns over security, corruption and taxation levels, and a lack of competition for this failure for Indonesia to live up to expectations. [more, prlog.org]