Indonesia will become the 4th largest world’s mobile market by the end of 2013

According to the information released in the News paper, In Indonesia, Telecom will be the Asian highest fixed growth in the next 5 years and will become the world’s 4th largest mobile market.Indonesian population is 228 million people, It is the the world's fourth largest country and is doing strategic growth markets in Asia. However, Indonesia’s population is one of the least connected in the region with other countries connected in the region with fixed, mobile and Internet penetration rates as low as 13.4%, 62.7% and 1.1% respectively at the end of March 2009. Its level of connectivity is poorly with neighbouring countries such as Singapore where fixed, mobile and Internet penetration are as high as 37.9%, 129.4% and 98.4%, and Malaysia, were mobile penetration stands at 94.8%.

Indonesia has a low fixed line proliferation, with 30.8 million fixed and fixed-wireless subscribers at the end of March 2009. This is mainly due to poor network development in rural areas, high poverty level and accelerating mobile substitution. The introduction of fixed-wireless technology has however drastically improved network development in the last 4 years. Fixed-wireless customers, now represent 71.9% of all fixed connections, compared with 16.4% at the end of 2004.
With the expansion of the fixed-wireless network in rural areas and the introduction of competition and foreign investments, the number of fixed subscribers is forecasted to grow at a Compounded Annual Growth Rate (CAGR) of 12.3% over the next 5 years, bringing the number of fixed lines to 52.4 million at the end of 2013, which would represent a penetration rate of 20.8%. “Indonesia should therefore enjoy by far one of Asia highest fixed growth in the next 5 years” HOT TELECOM’s president Isabelle Paradis said.

The mobile market on the other hand is continuing its expansion, with an average growth of 49.8% between 2003 and the end of 2008. At the end of 2008, the country boasted 138.8 million mobile customers, representing an increase of 49.2% in that year alone. The growth trend is likely to continue in the double-digits until 2011, with a forecasted CAGR of 12.3% in the next 5 years, bringing the number of mobile customers to 246.1 million at the end of the forecasted period, representing a penetration rate of 97.8%. At that time, Indonesia will have become the world’s 4rth largest mobile market behind China, India and the United States. At the end of March 2009, Indonesia’s mobile subscribers stood at an estimated 143.6 million.

With a penetration rate of 1.1%, Indonesia’s Internet development is far behind most Asian countries. At the end of March 2009, the country had an estimated 2.4 million subscribers and 28.5 million users. The advent of broadband, wireless Internet and the proliferation of the fixed-wireless network in rural areas should however stimulate growth in the next 5 years with a forecasted CAGR of 7.8%. Broadband proliferation is still well behind most major Asian countries, however operators are now focusing on developing high speed networks, and projects in that realm is becoming a priority. The introduction of wireless broadband should also stimulate this sector greatly. The number of broadband subscribers is therefore forecasted to have reached 3.2 million at the end of 2013 and at that time, the service should connect 93.6% of all Internet subscribers.

With a penetration rate of 1.1%, Indonesia’s Internet development is far behind most Asian countries. At the end of March 2009, the country had an estimated 2.4 million subscribers and 28.5 million users. The advent of broadband, wireless Internet and the proliferation of the fixed-wireless network in rural areas should however stimulate growth in the next 5 years with a forecasted CAGR of 7.8%. Broadband proliferation is still well behind most major Asian countries, however operators are now focusing on developing high speed networks, and projects in that realm is becoming a priority. The introduction of wireless broadband should also stimulate this sector greatly. The number of broadband subscribers is therefore forecasted to have reached 3.2 million at the end of 2013 and at that time, the service should connect 93.6% of all Internet subscribers.