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5G can bring $1.8b in revenues for Indonesian telecoms in 2025: Study
Indonesia would likely adopt the fifth-generation technology starting in 2022 and would experience a subscription surge in 2023 onwards.
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Man holding 5G smartphone to illustrate a concept of 5G network, high-speed mobile Internet, new generation networks. (Shutterstock/Marko Aliaksandr)
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lthough Indonesia’s adoption of the fifth generation ( 5G ) wireless technology is to likely lag behind regional peers, it can boost telecommunications operators' revenues by US$1.3 billion to $1.83 billion in 2025, with major contributions from enterprises, a recent study suggests.
Enterprises can contribute 18 to 22 percent to incremental revenue growth while individual consumers can contribute 6 to 9 percent, according to the study conducted by computer networking company Cisco and management consulting company A.T. Kearney.
“I believe Indonesia can reach this number because it has mature telecommunications companies and growing industries,” said Cisco ASEAN’s managing director of service providers, Dharmesh Malhotra, on Monday.
He added that to capture the possible market, the country would need to invest about $4 billion to $6 billion annually from 2020 to 2025, which is the highest amount among ASEAN countries as Thailand and Malaysia only need to invest about $2 billion and $1 billion, respectively.
The study also found that 5G market penetration can reach 25 to 40 percent in some countries in the region, with a total of more than 200,000 subscribers. Indonesia is said to have the highest number, with more than 100,000 subscribers.
He said Indonesia would likely adopt the fifth-generation technology starting in 2022 and would experience a subscription surge in 2023 onwards. While 5G in other countries such as Singapore and Vietnam would likely take off in 2020 and 2021.
Read also: No frequency yet available for superfast 5G network
