Research and Markets: Indonesia Telecommunications Report Q4 2011

DUBLIN--(BUSINESS WIRE)-- Research and Markets (http://www.researchandmarkets.com/research/dee830/indonesia_telecomm) has announced the addition of the "Indonesia Telecommunications Report Q4 2011" report to their offering. .

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.

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.

For more information visit http://www.researchandmarkets.com/research/dee830/indonesia_telecomm

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KEYWORDS:   Asia Pacific  Indonesia

INDUSTRY KEYWORDS:   Technology  Telecommunications

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