Indonesia to see flat mobile service revenue

Indonesia to see flat mobile service revenue

Mobile service revenue in Indonesia was predicted to stay flat over the next four years as the decline in revenues from voice services outweighs steady data returns.

In a statement, analyst company GlobalData said mobile service revenue will “grow at a mere” 0.3% compound annual growth rate (CAGR) from US$10.4 billion in 2022 to US$10.6 billion in 2027.

Mobile voice service revenues are expected to decline at a rate of 5.2% CAGR during the period as consumer switch to OTT communication platforms.

Data revenue will only increase at 2.1% between 2022 and 2027, driving this will be the rising popularity of mobile data services, continued uptake of post-paid smartphone contracts and a projected rise in higher-ARPU yielding-5G subscriptions.

Average monthly data usage is predicted to increase from 9.8GB in 2022 to 25.3GB in 2027 as subscribers consume more online videos and social media content on smartphones, made possible by the growing availability of 4G/5G services and data packages offered by operators.

Despite 5G being launched, 4G will remain the main connectivity standard in Indonesia over the next four years said GlobalData telecom research analyst Hrushikesh Mahananda, due to operators deploying LTE in underserved areas to fulfil government targets to connect all remote areas by the end of 2023.

“5G subscriptions, on the other hand, are estimated to increase at the fastest rate over the forecast period and are expected to garner about 12% share of the total mobile subscriptions by the end of 2027, driven by the ongoing 5G network expansions by operators,” said Mahananda.

Mahananda concluded: “Telkomsel will continue to lead the mobile services market in terms of subscription through 2027 given its strong focus on 4G network developments and expansion across the country. Moreover, the operator continues to add new customers through omnichannel and social media strategies.”

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