Telecoms & IT

With one of the most competitive telecommunications markets in the world, prices have been dropping year after year as Indonesian operators fight for customers. The result has been rapid growth in subscriber numbers and especially high penetration rates in major cities such as Jakarta. The intense competition and falling prices have also led to under-investment in some parts of the network, inconsistent service quality, and a lack of commitment to research and development. However, economic realities are taking hold, and, as pricing stabilises, the market consolidates and leadership emerges, quality should improve as margins widen, and significant investments are likely to be made. Indeed, many of the weaknesses in the market are expected to be addressed as the business becomes more profitable and providers start to compete on quality.