The total fixed communications service revenue in Indonesia is forecast to increase at a compounded annual growth rate (CAGR) of 12.6% from US$2.7bn in 2019 to US$4.9bn in 2024, driven by the strong growth in fixed broadband service subscriptions, according to GlobalData, a leading data and analytics company.

GlobalData’s Indonesia Telecom Operators Country Intelligence Report predicts that although the COVID-19 outbreak could slow down growth during 2020, the impact of the pandemic on the fixed sector will be relatively mild.

Fixed voice services revenue will increase at a CAGR of 5.1% over 2019-2024, supported by the growing adoption for Internet Protocol (IP) based voice solutions. Fixed broadband revenue, on the other hand, will grow at a robust CAGR of 14.3%, driven by growth in FTTH/B subscriptions, supported by the ongoing investments by operators and the government in fiber-optic infrastructure.

Deepa Dhingra, Telecom Analyst at GlobalData, says: “The fixed broadband ARPU will, however, drop from US$18.19 in 2019 to US$13.98 by 2024-end, due to aggressive discounts offered on multi-play packages by operators, to add new customers. Fixed voice ARPU will also drop from US$2.84 in 2019 to US$1.70 by 2024.

“Telkom Indonesia is expected to hold the largest market share in both fixed voice and broadband segments over the forecast period 2019-2024. Telkom Indonesia’s strong footprint in the circuit-switched and VoIP segments will support its leadership position in the fixed voice services segment through 2024. It will also lead the broadband segment through 2024, with its strong focus on expanding fiber-optic network coverage across Indonesia.”