23 Jun 2020
Posted in Coronavirus
Notwithstanding COVID-19, Indonesia’s mobile service revenue set to register 1.8% CAGR over 2019-2024, forecasts GlobalData
The total mobile services revenue in Indonesia is set to increase at a compound annual growth rate (CAGR) of 1.8% from US$10.1bn in 2019 to US$11.1bn in 2024, supported by healthy growth in mobile data service revenues, according to GlobalData, a leading data and analytics company.
GlobalData’s Indonesia Telecom Operators Country Intelligence Report forecasts that the impact of novel COVID-19 outbreak will cause mobile service revenues in Indonesia to fall by 10.6% year-on-year in 2020. A drop in the aggregate mobile services ARPU in 2020, with local operators offering large data bundles at no additional cost during the COVID-19 pandemic, will also cause a decline in the total mobile service revenues in the country.
Deepa Dhingra, Telecom Analyst at GlobalData, says: “Mobile data services will be the major growth driver in the overall mobile services market in Indonesia, with revenue from the segment poised to grow at a CAGR of 4.7% over 2019-2024, driven by growing mobile Internet subscriptions, rising consumption of high-bandwidth mobile data services, and improving data ARPU. On the contrary, mobile voice services and mobile messaging revenue will decline at a CAGR of 4.4% and 1.9%, respectively, over 2019-2024.”
Telkomsel led the mobile market in terms of subscription share in 2019 and will remain the leading mobile operator throughout the forecast period. Telkomsel’s market leadership is primarily due to its strong focus on 4G network expansion. Additionally, the operator is also gearing up for 5G deployment through its collaboration with Swedish company Ericsson.