Market Trends of Indonesia Communication Services Industry
Fixed Data Communication Services to Register a Significant Growth
- Growing design, implementation, maintenance, monitoring, and operation of fixed local (LAN) and metropolitan area networks (MAN) to communicate multiple services is propelling the market's growth under study. Fixed data network infrastructure solutions include multi-service network engineering, LAN/WAN networks in buildings and on campuses, solutions for secure access to corporate applications, preventive and corrective maintenance, and monitoring solutions.
- There is a rising requirement for communications systems in organizations that allow them to effectively carry out their corporate strategy and deal with current competitiveness and innovation challenges. Indonesia's fixed communications services market is driven by the rapid uptake of fixed broadband services and users switching to mobile and internet-based communication services.
- The growing uptake of high-speed fiber-optic broadband services, fiber-to-home/business (FTTH/B) lines, and an increased demand for high-speed Internet services is driving the market growth in Indonesia. Telkom Indonesia, a telecommunications company, is expected to offer a strong portfolio of fixed voice and broadband services in the region owing to its strong footprint in the traditional circuit-switched and VoIP, propelling the fixed voice services segment.
- Link Net, an Indonesian broadband provider, launched a new data center in east Java this year. The company partnered with Chinese telco ZTE to upgrade Jakarta's data center facilities and construct a new data center in Surabaya, aiming to transform Link Net's residential broadband business into Fiber Co. The companies are focused on increasing the reliability of the Fiber to the Home (FTTH) network, thereby ensuring smooth connectivity and optimal distribution of Internet services and video content to customers.
- According to GSMA, over 176 million Indonesians are subscribed to mobile services, driving communication in the expanding digital economy. 4G networks and the emerging ultrafast 5G enable digital inclusion in Indonesia. Mobile phones are crucial in delivering vital services as a communications tool. Fiber-to-the-room (FTTR) is also emerging as a fifth-generation fixed network (F5G) technology for high-quality home networking.
- Prominent market players in the fixed network CPEs domain are committed to delivering premium solutions, products, and services to customers in Indonesia. Continued advancements in the FTTR field and collaboration with industry partners are anticipated to drive growth in the Indonesian communication services market. Availability of data rates of 2,000 Mbit/s effectively meets the requirements for Internet access, VoIP, and IPTV services simultaneously. Integrating Wi-Fi 6 technology with FTTR offers high speed, low cost, and high stability, making it an ideal choice for users nationwide.
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Communication Services Adoption to Grow Across Retail
- The Indonesian retail market is one of the fastest-growing markets in the world, attributed to a large consumer base and a growing economy. Retail organizations in Indonesia are prototyping innovation in communication to empower frontline workers to increase retention, revenue, and efficiency, improving customer experiences and streamlining processes. In workflow orchestration, a tremendous amount of coordination is required among store associates to keep operations running smoothly. Further, the disruptions caused by the COVID-19 pandemic, including increased order volumes, out-of-stock, social distancing, and staff call-outs, have increased the demand for real-time conversations and communications in the retail sector.
- Retail communications refer to information sharing between store associates and office employees. The COVID-19 pandemic has changed how Indonesian consumers shop, accelerating the shift from physical stores to online shopping. Official stores in third-party marketplaces have seen tremendous growth in online sales, which is further expected to rise during the post-pandemic era. According to GSMA, The internet has been the most important enabler of the country’s societal development and economic growth. In Indonesia, the growth of unique mobile subscribers and mobile internet user penetration rate is expected to drive market expansion.
- Growing partnerships and collaborations are driving the adoption of communication services across Indonesia's retail sector. Hypertrade, a retail solution publishing company, has partnered with SMF Solutions, an Indonesian retail solution provider, to expand its reach and deliver innovative retail solutions to Indonesian businesses. The partnership will position Hypertrade to offer its cutting-edge retail solutions to Indonesian companies. Their expertise will help Hypertrade tailor its solutions according to the needs of Indonesian enterprises. The company plans to distribute retail software solutions in Indonesia designed to streamline operations, increase efficiency, and improve customer engagement.
- Rising partnerships among the Indonesian players represent a significant milestone for companies, enabling them to expand their reach and deliver value to their customers. Growing digitalization and modernization further add to the Indonesian retail market by allowing the retailer to fulfill orders simultaneously, field customer inquiries, help queue customers, and prioritize safety, privacy, and security.
- Enterprise-grade communication services enable workers to communicate instantly with each other and other stores to locate inventory, fulfill BOPIS orders, and cater to customers' queries without friction. This helps reduce losses, improve efficiencies, and increase long-term revenue. Such data suggest an increase in investment in the Indonesian communication services market to strengthen wireless networks and equip their teams with suitable devices to fully support them in providing high-quality customer service.
- Growing trends in retail communication software, such as Unified Communications as a Service (UCaaS), address the overall business communications and combine them over Internet Protocol. Unlike most VoIP solutions that are single mode, UCaaS is multimodal and includes several different communication tools, such as video conferencing, texting, screen sharing, group chat, and video meetings, which is driving the growth of the Indonesian communication service market.
