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 Friday, 28 November 2008

Indonesian Mobile Market flying the rating chart, subsequently the mobile operators are busy positioning themselves as growth starts to slow and competition becomes more stiff. The operators have to offer best of its price to expand its subscriber base as well as to build market share. It is anticipated that new entrants in alliance with foreign partners will bring a change in the shape of the market.

According to sources, Indonesia has by far the highest level of CHURN, 11.2%. ARPU in 2Q, 2008 was USD 5.70, among the lowest in the world and ARPU declines accelerated to 23% YoY in 2Q, 2008, compared to -15.3% in 1Q, 2008. The Indonesia mobile market scenario is one of the most challenging in the world, with operators caught in a low-ARPU, high churn market environment. It posted EBITDA margins at 56 % in 2Q, 2008.

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Source: Wireless Federation.