Indonesia: 4G to drive telco & pay-TV revenues

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Total pay-TV and telecom services revenue in Indonesia is poised to increase at a compound annual growth rate (CAGR) of 3.7 per cent over the period 2017-2022, mainly driven by growth in mobile data (4G) and fixed broadband revenues, according to data and analytics company GlobalData.

Mobile service subscriptions in Indonesia reached 426.6 million at year-end 2017, accounting for 10 per cent of total Asia-Pacific mobile subscriptions for the year. GlobalData’s Indonesia Country Intelligence Report states that the average mobile data usage will grow by a huge margin i.e., from 945MB/month in 2017 to over 5GB by 2022 primarily due to rising consumption of online video and social media content over smartphones and tablets.

Sandeep Kolakotla, Telecom Analyst at GlobalData, says: “Mobile data revenue will increase at a healthy CAGR of 6.4 per cent over the forecast period as a result of rising smartphone and connected mobile data device penetration, growing adoption of 4G LTE/LTE-A services with higher value data packs, and subsequent rise in mobile data ARPU. The ongoing LTE/LTE-A network expansions, including in rural areas and 5G development trials by MNOs will create major opportunities for investors and vendors in the Indonesian telecom market.”

GlobalData predicts that, at the same time, mobile voice usage will continue to drop due to ongoing shift toward OTT-based communication solutions in line with expanding 4G services and operators’ data-centric plans.


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