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Jakarta Post

Analysis: Indonesia: Mobile market

  • Josh Franken

    Oxford Business Group

  /   Mon, May 16 2011   /  08:00 am

It is certainly intensely competitive, but the size and growth potential of the Indonesian telecoms sector suggests that players that invest and innovate can enjoy considerable success.

In an exclusive interview with Oxford Business Group (OBG), Indonesia’s Communications and Information Minister, Tifatul Sembiring, noted that the existence of many companies in the market, including some powerful incumbents, would drive technological development in the industry, including increasing use of mobile internet, particularly as conventional services become less profitable.

“There are 12 mobile operators in the market, five of which control 92 percent of income revenue,” Tifatul told OBG. “Due to the resulting price war we are seeing average revenue per user [ARPU] falling as a result of the fierce competition. Companies looking to come in have to be extremely innovative a...