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Competition in Indonesia telco industry heats up

December 2013
Marketing Magazine Indonesia

Competition in Indonesia telco industry heats up

The telco industry in Indonesia is under pressure from ever more demanding smartphone customers to raise service quality and choice. Jeffrey Bahar, Deputy Chief Executive Officer of Spire Research and Consulting, was invited to share his views with Marketing Magazine Indonesia on how industry players are battling it out to stay in the game.

Players in the Indonesia telco industry are now focusing on providing a wider range of value-added internet services, instead of cheap voice call tariffs as was previously the case. The innovative value-added services being rolled out include mobile payment, mobile advertising and mobile e-commerce.

Bahar opined that marketers have noted that Indonesian consumers have become more tech-savvy and this has created opportunities in the internet services space. For example, internet services for XL grew about 23% in 2013 compared to 19% last year. Besides, there is currently no intense tariff war going on among industry players, as witnessed in previous years. Three prominent players – XL, Indosat and Telkomsel – have emerged as the clear leaders in the sector.

Bahar concluded that 2014 would be defined by more emphasis on value-added services and applications that enable customers to control everything from the comfort of their homes.

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