Fiber broadband to drive Indonesia fixed communication services revenue at 4.6% CAGR during 2024-29.
The fixed communication services revenue in Indonesia is forecast to increase at a compound annual growth rate (CAGR) of 4.6% from $3.2 billion in 2024 to $4 billion in 2029 as fiber broadband service adoption gains traction, according to GlobalData, a leading data and analytics company.
GlobalData’s Indonesia Fixed Communications Forecast (Q2 2024) reveals that the fixed voice service revenue will decline at a CAGR of 0.7% over 2024-2029, due to the continued drop in circuit-switched subscriptions and a decline in fixed voice average revenue per user (ARPU) levels with users continuing to shift from traditional telephony to mobile/OTT communication services.
Fixed broadband service revenue, on the other hand, will increase at a CAGR of 4.9% during 2024-2029 as fixed broadband household penetration gains pace, especially with growing adoption of higher ARPU fiber-optic (FTTH/B) services.
Srikanth Vaidya, Telecom Analyst at GlobalData, comments: “Fiber lines are estimated to account for about 88% share of the total fixed broadband lines in Indonesia in 2024 and will remain the leading broadband technology through 2029. This growth in fiber lines will be driven by the growing demand for high-speed broadband connectivity and efforts by the government and telecom operators to upgrade and expand fiber broadband infrastructure in the country.”
Telkom Indonesia will lead both fixed voice and broadband service segments, by subscriptions over the forecast period. The telco’s leading position in the fixed broadband segment can be attributed to the ongoing modernization of its infrastructure with fiber-optic networks across the nation. For instance, the telco planned to invest Rp280 billion ($18 million) for development of the National Capital City (IKN) of Nusantara until 2026. A substantial portion of this investment would be used for installing fiber optics in the Core Government Center (KIPP) 1A area.
