Broadband TV Connect Asia is Asia’s largest content-led telecoms and media event for telcos and broadcasters, making Indonesia – which represents the third largest mobile market in terms of subscriptions in the Asia-Pacific region (behind China and India) – a great host country.
Indeed, in October 2014, the Indonesian government launched its National Broadband Plan (2014-2019), which aims to provide fixed access in urban areas to 71% of households (at 20Mbps) and 30% of the population, and mobile access to the entire population (1Mbps). In rural areas, access to fixed broadband infrastructure is expected to reach 49% of households (10Mbps) and 6% of the population and mobile access to 52% of the population (1Mbps).
The total budget allocated for the program is IDR278tn ($23.2bn), with 10% of the total budget coming from the state.
Telkom is the largest fixed broadband provider in Indonesia, well ahead of competitors such as Kabelvision and Indosat. By end-April 2015, Telkom FTTx “IndiHome” had been made available in 60 towns and cities across the country, following its launch in 3Q14. By end-2015, Telkom aims to sign up 3 million fiber subscribers, by expanding its fiber network in eastern Indonesia.
Fiber market share will grow further as Singapore ISP, MyRepublic, launched a fiber broadband service in the country in July 2015. At launch, fiber service was available in nine locations in Indonesia, including Bahasa, Palembang, and Surabaya.
For a more detailed overview of market dynamics in Indonesia, download Ovum’s Indonesia Market Outlook 2015 for free. Written by Vivek Roy, Research Analyst, Asia-Pacific, Ovum