Indonesia’s fixed communications market to grow 13.3% by 2025

Indonesia’s fixed communications market to grow 13.3% by 2025

Driven by strong growth in fixed broadband service adoption, Indonesia’s fixed communications services market revenue is set to increase at a compound annual growth rate (CAGR) of 13.3% from US$2.9bn in 2020 to US$5.3bn by 2025.

 The fixed voice service revenue will grow at a CAGR of 11.3% over the forecast period, driven by the growing adoption of packet-switched (VoIP) services, said a report by GlobalData, a data and analytics company.

According to the report, fixed broadband accounts in the country, on the other hand, will grow at a robust CAGR of 19.8% over the forecast period, led by the rising adoption of high-speed fiber-optic broadband services.

Meanwhile, fiber-to-home/business (FTTH/B) lines will go on to account for 94% of total fixed broadband accounts in the country by end of 2025, driven by rising demand for high-speed broadband services and further expansion of fiber-optic networks in the country.

Harendra Sharma, the Associate Analyst at GlobalData, said: “Cable and DSL’s share in the overall fixed broadband lines will decline to reach 3.7% and 2.2%, respectively, by the end of the forecast period.

He added: “Telkom Indonesia is expected to lead both fixed voice and broadband service segments, by subscriptions over the forecast period 2020-2025. Telkom Indonesia’s strong footprint in the traditional circuit-switched segment as well as in the VoIP segment will support its leadership position in the fixed voice services market. Its leadership in the fixed broadband segment can be attributed to the ongoing modernization of its fixed infrastructure with fiber-optic networks across the nation.”