Fixed Wireless Services in Indonesia

An Expert's View about Telecommunications in Indonesia

Posted on: 16 Feb 2010

Summary

The Indonesian fixed wireless access (FWA) market is heating up and becoming more lucrative as demand for mobile phones continues to increase. Indonesia encompasses over 6,000 inhabited islands, making fixed wireless networks a far superior solution to costly landline networks in terms of physical deployment, and capital expenditures for infrastructure. Indonesia is the fourth most populous country in the world with over 230 million people and FWA mobile subscribers of 21.70 million at the end of 2008, a penetration rate of 9.43%. The penetration rate indicates that there is still room for growth in the country’s FWA market.

 

Market Demand

The total number of fixed wireless subscribers based on Code Division Multiple Access (CDMA) technology among four carriers exceeded 23 million by March 2009 - making it the leader in Southeast Asia for CDMA subscriber growth. At the end of 2008, the total number of FWA subscribers was 21.0 million, an increase from 10.8 million or 95.1% from the previous year. This increase is attributed in large part to the availability of ultra low-cost handsets and affordable tariffs, which are critical to technology and service expansion in emerging markets.

 

The introduction of CDMA 2000 1X gives an efficient technology solution to expedite the increase of teledensity in Indonesia. The launching of CDMA technology in the country contributes to tighter competition in the telecommunications business. The competition benefits consumers as it provides a cheaper alternative. Cellular phone and FW phone services have different tariffs because the cost of the licenses for cellular phone is higher. The tariff of Flexi, Esia, StarOne and Hepi fixed wireless telephone is based on local fixed telephone tariff. In addition to the voice services, the country FWA operators utilize the CDMA service not only in mobile voice service, but also in high speed data access.

 

By Kalung Riang

Read the full market research report


Posted: 16 February 2010

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