|
|
 |
|
Viewing report
|
|
|
|
Indonesia Telecommunications Report Q4 2011
Business Monitor International, Aug 2011, Pages: 108
Business Monitor International's Indonesia Telecommunications Report provides industry professionals and strategists, corporate analysts, telecommunication associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Indonesia's telecommunications industry.
In this quarter’s update, BMI has incorporated figures provided by the International Telecommunication Union and Indonesian mobile operators, and made several revisions to the forecast scenarios. While the report largely retains expectations for the country’s mobile, 3G, fixed-line and internet sectors, BMI has adjusted the outlook for the broadband industry and mobile operators’ ARPU levels. Figures provided by companies such as Telkomsel, Indosat and XL Axiata showed that the decline in ARPU was worse than previously expected, which could be attributed to intense competition arising from price promotions to grab market share and rural expansions.
Indosat has reportedly launched a sale of 4,000 telecoms towers to raise more than US$500mn. Indosat has been mulling the sale of its tower assets for more than a year, which would allow the company to boost cash reserves and concentrate on its core business of providing mobile services. The report believes that the additional funds would help the operator to consolidate its position as the second largest mobile operator in Indonesia. In addition, Indosat's decision to sell its towers could be partially attributed to the government's bid to encourage tower sharing to reduce resource duplication and lower capital expenditure. Indonesia's Ministry of Communications and Information and Technology issued a regulation in March 2008 that gave local governments the ability to limit the number and placement of telecoms towers. Furthermore, telecoms operators that own towers are obligated to allow alternative operators to use their towers without discrimination. Consequently, there is less incentive for mobile operators to incur hefty costs to increase the number of base stations.
Meanwhile, the planned merger of Telkom's Flexi brand and Bakrie Telecom's Esia has collapsed after one year of negotiation. Although the deal was potentially a good fit and both companies would have formed an entity that would have controlled more than 90% of Indonesia's CDMA market, there were also many challenges that hindered positive progress. Nevertheless, the agreement was looking increasingly precarious after Bakrie Telecom's parent company, Bakrie & Bros, said in March 2011 that it was frustrated by the lack of progress and could talk to alternative suitors. Besides concerns from Indonesia's business competition supervisory commission, Komisi Pengawas Persaingan Usaha (KPPU), about a possible monopoly and Telkom's labour union, Telkom said its shareholders did not approve of BTel's request to acquire a majority stake.
Indonesia reaffirmed its position as one of the more attractive emerging telecoms markets in Asia Pacific after the country overtook India in this quarter’s BMI business environment ratings update. Indonesia is off to a flying start, registering real GDP growth of 6.5% y-o-y in Q111, driven by private consumption and investment. BMI continues to hold a sanguine view on the economy and caution upside risks to the 5.9% and 5.8% real GDP forecasts in 2011 and 2012 respectively. However, although Indonesia has returned to relative orderliness since the post-Suharto chaos of the late 1990s and early 2000s, the country faces multiple challenges and threats to its stability that could flare up again if President Yudhoyono or his successor proves incompetent or if improved governance fails to take hold. Investors will continue to view Indonesia as one of Asia's riskier destinations.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
