Mobile Internet will become the `Hero` for Indonesian Telco

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JAKARTA (indotelko) –  Frost & Sullivan projects mobile internet will become the “hero” that save the Indonesian telco in 2013 as it will open the new horizon beyond data communication segment.

The “mobile internet fever” will contribute to the growth of the country’s telecom industry and benefit the players. Helping to drive the growth are cheaper smartphones price and rapid social network adoption in the country.

Dev Yusmananda, Head of Consulting ICT Practice - Indonesia, Frost & Sullivan explained as the market gets competitive, telecom players need to transform to maintain its growth. Thus, value added mobile data services started to become the important source of revenue growth for operators in Indonesia.

He added that mobile internet will continue to be the enabler of strong internet penetration in Indonesia and creating potential income windows for telecom players by participating in mobile monetization.

“The main four windows to go beyond just data segment are mobilization (a trend where devices, softwares and services are starting to adapt and incorporate smartphone-like features and capabilities); Mobile payment; Mobile e-commerce; and mobile advertising,” said Dev.

With the increasing of mobile internet, Frost & Sullivan sees that wireless internet devices to grow significantly. Dev explained that wireless dongle expected to grow at 47.5% CAGR, smartphones at 16.1% CAGR and tablets at 11.6% CAGR, by 2013.

Meanwhile globally, Nitin Bhat, Partner, Frost & Sullivan pointed out smartphone shipments is growing rapidly and projected to reach 1 billion by 2016. Asia Pacific is likely to be the fastest growing region for smartphone shipments, reaching 37.6% in the same period.

In 2015, Asia Pacific will be the biggest region for Mobile Payments with Japan and South Korea to lead the Asia-Pacific region in m-payments adoption.

“However, mobile payments services in Japan are largely operator driven where financial institutions involvement remains partial,” Nitin concluded.(es)