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Mobile Internet will become the "Hero" that saves the Indonesian Telco in 2013, Finds Frost & Sullivan

~ Cheaper smartphones and Social Network adoption will be the key growth drivers ~

JAKARTA, Indonesia, Feb. 13, 2013 /PRNewswire/ -- Frost & Sullivan projects mobile internet will become the "hero" that saves the Indonesian telco in 2013 as it will open the new horizon beyond the 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 smartphone prices 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 create 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 wireless internet devices growing significantly. Dev explained that wireless dongle is 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 are 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.     

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. 

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible.  This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.  

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?  

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Sr. Corporate Communications, Indonesia
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