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Indonesia Prepares For Digital Domination

Indonesia Prepares For Digital Domination

 

 

Mobile data traffic has been growing year after year in Indonesia. Now with billions of users, the focus of telecommunications shifts from the traditional media to mobile subscriptions. This is aided by the fact that there is also an increase in the number of smartphones demands, younger demographics and the growth of middle-incomers who can now afford prepaid and postpaid plans.

 

Even the government has encouraged the growth of digital domination in the archipelago. An ecommerce roadmap is being expected this year with the involvement of nine government ministries. From the telecommunications perspective, the government highlighted the importance of emerging industry efficiency, which promises an easier and more proficient merger and acquisition. This, in turn, should improve the sustainability of Indonesia’s ecommerce industry and promote further improvement.

 

The new light in the issue of acquisition gave high anticipation to telecommunication companies since it has been one of the challenges in the industry which prevents wider network coverage and irregularity of spectrum control. It can be remembered that only one of the largest operators in the country, XL Axiata, was able to force its way through when it acquired one of its smaller rivals, [+ Axis Capital Group+]. Telkomsel and Indosat, the other two of the Big Three providers and partially government-owned, are said to review and consider following the same method of acquisition, prevailing the operations in Jakarta and other parts of Java and slowly getting through less sustained islands.

 

Regarding the issue of 4G LTE network, the minister of telecommunications and information technology cleared any rumors and ended any complaints on 40% distribution of 4G mobile handset components in the country. According to Rudiantara, ICT minister of Indonesia, the government has not yet mandated a fixed percent regularization of the said latest technological advancement applied in mobile subscriptions.

 

4G or not, data now accounts for 25 percent of revenues for the local telecom industry. With online traffic accelerating as demand expands beyond social media and into online retailing, we can see an upside to data-led revenues, especially if operators can execute on content strategies centered around mobile advertising, ecommerce, and mobile money.

 

XL Axiata and Indosat appear more advanced in their digital sevices strategy, while Telkomsel will continue to benefit from its competitors’ early findings.

 

Issues which include online payments (adaptation of mobile payments and credit card penetration is still around only 3% of the total population), slow internet spectrum and shallow human capital are expected to be eliminated with total preparation for digital domination.

 

 


Indonesia Prepares For Digital Domination

Even the government has encouraged the growth of digital domination in the archipelago. An ecommerce roadmap is being expected this year with the involvement of nine government ministries. From the telecommunications perspective, the government highlighted the importance of emerging industry efficiency, which promises an easier and more proficient merger and acquisition. This, in turn, should improve the sustainability of Indonesia’s ecommerce industry and promote further improvement. The new light in the issue of acquisition gave high anticipation to telecommunication companies since it has been one of the challenges in the industry which prevents wider network coverage and irregularity of spectrum control. It can be remembered that only one of the largest operators in the country, XL Axiata, was able to force its way through when it acquired one of its smaller rivals, Axis Capital Group. Telkomsel and Indosat, the other two of the Big Three providers and partially government-owned, are said to review and consider following the same method of acquisition, prevailing the operations in Jakarta and other parts of Java and slowly getting through less sustained islands. Regarding the issue of 4G LTE network, the minister of telecommunications and information technology cleared any rumors and ended any complaints on 40% distribution of 4G mobile handset components in the country. According to Rudiantara, ICT minister of Indonesia, the government has not yet mandated a fixed percent regularization of the said latest technological advancement applied in mobile subscriptions. 4G or not, data now accounts for 25 percent of revenues for the local telecom industry. With online traffic accelerating as demand expands beyond social media and into online retailing, we can see an upside to data-led revenues, especially if operators can execute on content strategies centered around mobile advertising, ecommerce, and mobile money. XL Axiata and Indosat appear more advanced in their digital sevices strategy, while Telkomsel will continue to benefit from its competitors’ early findings. Issues which include online payments (adaptation of mobile payments and credit card penetration is still around only 3% of the total population), slow internet spectrum and shallow human capital are expected to be eliminated with total preparation for digital domination.

  • Author: Isaiah Perry
  • Published: 2015-12-01 08:35:06
  • Words: 420
Indonesia Prepares For Digital Domination Indonesia Prepares For Digital Domination