Friday, December 12, 2008

How is Indonesia's mobile industry taking shape?

Came across an article from a research house few hours ago. The report, published in November, contains some vital information on Indonesia's mobile industry.

The report was prepared by IE Market Research Corp's research associate Wency Yee.

Below are some of the points Yee highlighted:
1. "ARPU in second quarter 2008 was US$5.64, among the lowest in the world and ARPU declines accelerated to 22.1 per cent year-on-year, compared to 15.7 per cent year-on-year in first quarter 2008."

2. "At 11 per cent, Indonesia has by far the highest level of churn among the 200+ mobile operators we cover."

3. "This makes Indonesia's mobile operator environment one of the most challenging in the world, with operators caught in a low-ARPU, high churn market environment."

4. "However, despite this environment, Ebitda margins among Indonesian mobile operators are some of the highest in the world with reported Ebitda margins at 56 per cent in Q2 2008."

The research house predicts that operators in Indonesia will hit Ebitda margins of 63.8 per cent in 2010. Subscriber base is also expected to increase from 116.4 million in Q208 to 130.9 million in 2010.

For more info, check out


mafiz said...

Yup...I tend to agree with the findings. Just got back from Jakarta from my current Telco assignment.

This is not surprising though as their 'tail' segment forms the bulk of their ARPU contributor.

The price war is very intense and even some of the telco uses per character charges for SMS (1Rp/Character).

Anonymous said...

can someone help me with the ad networks and agencies in Indonesia dealing in mobile advertising it will be great for my project report cant get much info on this topic.

If anyone could help me links as well it would be really great


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