Indonesia telecom sales to grow by 3.7% CAGR through 2029

Rising data usage and fiber adoption offset mobile voice service revenue.

Indonesia’s total telecom sales will continue to increase at a compound annual growth rate (CAGR) of 3.7% during the 2024-2029 period.

The growth will be led by the rising mobile data usage and accelerating fiber adoption throughout by operators’ push toward higher value 5G and FTTH services to service rising mobile data usage.

The shift from traditional voice to data-centric consumption has been marked by infrastructure upgrades, premium plans, and widening access that will redefine user experience and market structure, reveals GlobalData.

In its Indonesia Telecom Operators Country Intelligence Report, GlobalData revealed that the  mobile voice service revenue will decline during the forecast period.

The decline is due to the free bundling of voice minutes by mobile network operators (MNOs) into their mobile plans, rising user preference for OTT/internet communication services and the subsequent decline in mobile voice ARPU levels.

Mobile data service revenue, on the other hand, will continue to increase at a healthy CAGR of 5.3% over the forecast period, fueled by the growing adoption of higher ARPU-5G services.

High-data quotas and premium unlimited plans will further drive revenue growth in the mobile data segment.

“4G services accounted for a majority share of the overall mobile subscriptions in 2024 in Indonesia and will remain the leading mobile technology through 2029,” said Srikanth Vaidya, Telecom Analyst at GlobalData.

“5G subscriptions will increase at a faster pace over the forecast period, driven by the ongoing 5G network expansions by major MNOs, and wider availability and affordability of 5G smartphones,” he added.