International focus – South East Asia market (Indonesia)

Indonesia’s telecoms industry is primarily about mobile, with 278 million mobile subscribers and just 11 million fixed lines. While eight mobile operators make the market openly competitive, the Big 3 operators – Telkomsel, Indosat and XL Axiata – have 80% market share between them. The other influential players in the industry are the device manufacturers, and local handset companies now compete fiercely with the global players. In the fixed line market, Telkom and other niche players primarily focus on business customers.

The Telecom infrastructure industry in Indonesia is represented by MNO’s (still owns the majority of the towers) or Tower Companies who own the tower assets, as well as by telecom equipment vendors who supply telecom sites with power equipment and solutions. The site maintenance is led by the managed services providers (MSP’s) with support from sub-contractors at the field level.

Indonesian mobile subscribers are connected via approximately 90,000+ towers which could become as many as 130,000 by 2015. Protelindo, Tower Bersama, STP and Mitratel lead the way and own approximately 30% of the total national tower count. There an array of regional TowerCo’s including Komet Infra Nusantara, IBS Tower and Retower. There are as many as 60,000 towers in the hands of mobile operators Telkomsel, XL Axiata and Indosat.

The total tower count stands at 90699 of which 4930 or 5.43% are off-grid, 3834 or 4.28% are running on unreliable grid, 81935 or 90.33% are grid connected. The breakup for the various modes in which the current towers are running are given below:

Based on the survey on Indonesian market, we came to know about different operational and business challenges faced by passive infrastructure providers:

  • Low electricity grid availability
  • Security of passive infrastructure and tower site as a whole
  • Huge operational expenditure and diesel pilferage
  • Asset security, longevity and tracking
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