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Indonesia builds up wireless app market

Veronica C. Silva | March 10, 2011
Indosat, Alcatel-Lucent in tie-up for application incubator lab

Iwan Rachmat, ICT analyst, Frost & Sullivan, said in an e-mail correspondence that opening up the APIs to application developers is a “positive move” to grab larger market base.

“The key challenge, however -- as is also experienced by other operators -- is to manage service delivery (with collaboration with apps developers, providers, smartphone providers, channel/ distribution) and to monetise these services, hence improving the bottom line,” he added. “If Indosat can leverage its scale, resources, collaborations with vendors, & capabilities, this should contribute to a significant revenue incremental.”

Frost & Sullivan data show that Indonesia has a wireless subscriber penetration rate of 95.9 per cent but subscriber growth has been declining since 2008. Total industry revenues are also expected to decline from 2012 although data services are “gaining traction”. 


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