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Jakarta Post

Mergers and acquisitions inevitable in mobile phone industry

  • Hendarsyah Tarmizi

    The Jakarta Post

JAKARTA   /   Mon, March 1 2010   /  01:37 pm

Indonesia's mobile phone industry has grown very rapidly during the past five years, making it one of the fastest growing businesses in the country. Indonesia has 11 mobile phone providers with total subscribers of about 160 million. The industry has, however, been marked by an intense price war during the past several years as most providers have chosen to use "low price" strategies to increase their market share. Telkomsel president director Sarwoto Atmosutarno said that the intense competition in the industry could lead to mergers between small providers because their revenues may no longer be able to cover their high operating costs. "In less than three years from now, there will be only five or six mobile phone providers as compared to 11 providers at present," he said during an interview with The Jakarta Post last week. In the interview, Sarwoto also explained a...