Indonesia has more mobile cellular subscriptions per 100 people as compared with China, which has 93. Like any other emerging market, Indonesia’s telecom industry is witnessing rapid growth in smartphone adoption as the consumption for digital content increases. The smartphone user penetration in Indonesia is touted to reach 43.2 percent by 2017.
Let’s look at 5 facts about the evolving Indonesian mobile network ecosystem.
- Cellular services and adoption
The number of cellular subscribers in Indonesia stands at 326.3 million. 85% of the population own mobile phones, while 43% carry smartphones. Using mobile internet on smartphones has become the preferred way to access the web. Mobile traffic has surpassed desktop searches in Indonesia.
- Connectivity across the country
Additionally, more than a billion people worldwide will be connected to mobile networks by 2020 and approximately a third of the traffic would be from countries including Indonesia & Pakistan among others. Telkomsel (Telekomunikasi Indonesia), the largest telecom service provider in Indonesia attributes the growth in its data and internet services to the rise in smartphone adoption. The Telecom operators are looking to tap this opportunity by bringing in more investments.
- Growth and trends with higher focus on the rural telecom infrastructure
Telecom operators route to 4G adoption, however, 2016 has seen a slower adoption rate. The Government is aiming to improve connectivity and broadband development with the national broadband plan 2014 – 2019. The target is to achieve 49% of fixed broadband and 52% mobile broadband in the rural areas by 2019. Coming to the telcos, the industry is valued at $125 Billion and is touted to see improvement in voice and SMS monetization to offset the infrastructure costs of setting up 4G network.
- Digital content consumption
For media consumption, the daily total of screen time is 540 minutes/day, with 291 min/day being the share of mobile devices which includes smartphones & tablets. As content consumption on mobile increases, the ads spends are projected to grow up to 97.1 million in 2017.
- The Next big e-commerce market
With rapidly growing smartphone users, Indonesia is well on the road to becoming a major e-commerce market. The market can be compared to China, as both markets cater to a large population with increasing disposable income.
Indonesia is a growing digital nation, however the competition among operators is likely to intensify on the service pricing front and profitability. The growth environment is slow as the telcos look to consolidate their business. In the slow transforming environment, with a solution provider like Omoco you can lead the change. The compact hardware platform enables you to create an autonomous communication network. As network providers work towards establishing the structural network requirements, you can easily be in charge of connectivity with Omoco!
Do get in touch with us at firstname.lastname@example.org if you wish to bridge the coverage gap in Indonesia.