Fixed communication service revenue in Indonesia is set to grow at a compound annual growth rate (CAGR) of 4% from $3 billion in 2024 to $3.7 billion in 2029, driven by the growth in the fixed broadband service segment, forecasts GlobalData, a leading data and analytics company.

GlobalData’s Indonesia Fixed Communications Forecast model (Q1 2025) reveals that fixed voice service revenue will decline at a CAGR of 1.3% over the forecast period, given the steady drop in circuit-switched subscriptions and decline in fixed voice ARPU, as users shift from traditional voice services to OTT/app-based communications.

Fixed broadband service revenue, on the other hand, is expected to increase at a CAGR of 4.3% over the forecast period in line with the anticipated growth in broadband household penetration levels in the country as the government plans to provide high-speed home internet access with up to 100 Mbps speeds at affordable monthly rates to achieve digital inclusivity and achieve nation’s digital transformation.

Neha Mishra, Telecom Analyst at GlobalData, comments: “Fiber lines accounted for about 83.1% share of the total fixed broadband lines in 2024 and will remain the leading broadband technology through to 2029, driven by the strong demand growth for reliable and high-speed broadband services in the country and the government’s push for a nationwide fiber rollout.

Telkom Indonesia led both fixed voice and fixed broadband segments by subscriber share in 2024.

In the fixed broadband market, Telkom Indonesia is expected to maintain its leadership across the forecast period, thanks to its strong presence in fiber segment. Through its IndiHome B2C brand, the operator offers a range of bundled plans combining broadband internet, IPTV and fixed telephone services with package options featuring internet speeds from 30Mbps to 100Mbps, thus serving diverse needs of customers. It also offers EZnet, an affordable fixed broadband service that provides 10Mbps internet connection for the whole family.

Mishra concludes: “As service providers intensify efforts to extend high-speed connectivity to underserved areas, competition will likely stem from basic access to service differentiation through bundled offerings, network reliability, and customer experience. Operators that strategically invest in infrastructure and innovate around pricing will be best positioned to capture long-term value in a digitally empowered Indonesia.”