The mobile market, being more mature in Indonesia, has lower growth potential. In contrast, fixed broadband, with a penetration rate of just 14% versus the Asean average of 40%, is seen to have stronger growth ahead. In addition, fixed broadband has an average revenue per user six times that of mobile in Indonesia, says DBS Group Research, citing Analysis Mason.
Analysts are upbeat on Singapore Telecommunications, following news that Telkomsel, Singtel’s mobile associate in Indonesia, will be merging with a broadband business IndiHome in what is seen to an earning accretive deal.
Telkom, Indonesia’s incumbent telco operator, is the common controlling shareholder of both Telkomsel and IndiHome. The merger will create an entity with a market share of more than 50% in mobile, and around 75% in fixed broadband.
