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Telcos lean on data growth, push fixed-mobile convergence
Telcos are racing to offer fixed-mobile convergence (FMC) packages, but analysts say the combined home internet-mobile network service might only start appearing in their bottom lines next year.
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A sign bearing the logo of telecommunications provider Indosat Ooredoo stands outside its Central Jakarta headquarters in this undated photograph. (Shutterstock/Dominic Dudley)
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ndonesian telecommunications companies have reported continued revenue growth on the back of increased data usage, which is expected to rise even further in the run-up to next year’s general election.
At the same time, local telcos are working on fixed-mobile convergence (FMC) offerings, which combine fixed and mobile network services into a single package, to increase their average revenue per user (ARPU).
However, an analyst has expressed doubt over the firms’ readiness to offer FMC services, adding that any resulting contributions might not be reflected in their financial reports until next year.
Telkom Group posted revenue of Rp 36.1 trillion in the first quarter (Q1), 2.5 percent more than the corresponding period last year.
Telkom's mobile services arm, Telkomsel, contributed Rp 21.5 trillion to that topline figure, most of which came from a 7.1 percent revenue increase in the data and digital segment to Rp 18.15 trillion.
Steven Gunawan, an equity analyst at Henan Putihrai Sekuritas, said the state-owned firm’s performance was still in line with his initial full-year revenue estimate of around Rp 153.4 trillion for 2023.
Telcom rivals Indosat Ooredoo Hutchison (IOH) and XL Axiata also posted year-on-year (yoy) Q1 revenue growth of respectively 9.9 percent and 12 percent.
