Indonesia: Mobile landscape

1 Telecommunication Service Providers
2 Mobile Phones vs. the Internet

3 On The Consumer Front
4 Trends


MOBILE

Total number of mobile subscribers had exceeded 65 million by March 2007. The number was 12 million 5 years ago. The mobile penetration rate in Indonesia is moving towards 30% and is expected to rise at a fast rate in the future. Much potential is left to be explored in the mobile market.

1 TELECOMMUNICATION SERVICE PROVIDERS


Telkomsel is the market leader with 53% (or 23 million users) in 2005. Smaller operators such as Indosat, Satelindo, Mobisel/Orbit and Excelcomindo take up the rest of the mobile telephony space.

While GSM cards offer global coverage, pre-paid cards offer different coverage, offering networks in only a few islands. For example, Exelcomindo’s prepaid service (PRO XL) only offers coverage in Java and Bali only.

Prepaid card outgoing rates are very high in Indonesia, hence most prepaid card user use SMS to communicate instead.


2 MOBILE PHONES VS. THE INTERNET

Clearly, mobile phone penetration is much more successful than internet penetration rates. However, there is a closer relationship between the Internet and telecommunication service when we examine the mobile social networking space in Indonesia.

Mobile Monday recently launched Mobile Monday Indonesia, which has so far held events discussing the growing relevance of mobile social networking sites such as mobile advertising and how to develop mobile social networking applications.


3 ON THE CONSUMER FRONT

Although efforts have been made to engage consumers to use mobile social media, their access to even normal mobile phone content is still very primitive.

Take the following video for example





Its description says “For 5000 rupiah (SGD0.75) this fellow uploads an mp3 song to your mobile to use as a ringtone.”


With the presence of these machines, it is evident that the general consumer is still not familiar with using the computer to download songs (maybe he does not even have a computer) or Indonesia does not even have the technology of downloading content through an SMS request.








To better serve the mobile phone user community in Indonesia, apparently Roxy Mas (and next to it the Roxy Sqaure) is the main mobile phone building in Jakarta. There are five storeys in Roxy Mas with selling mainly SIM cards, accessories, repair services and mobile content providing services.

Indonesia - Social Media and PR across Asia
Indonesia - Social Media and PR across Asia
Photo Credits: http://www.bijt.org/



Consumers are also still very occupied with gadget accessories/decorations rather than actual applications as shown in the photos below.

Indonesia - Social Media and PR across AsiaIndonesia - Social Media and PR across AsiaIndonesia - Social Media and PR across Asia
Photo Credits: http://www.bijt.org/



The advertisements (shown below) demonstrate that prepaid card usage is predominant especially in the rural parts of Indonesia (see kampong photo on the right). Traditional media is still used to advertise. In addition, their advertisements do not serve the purpose of building brand awareness but to serve the simple need of updating people rates and costs.


Indonesia - Social Media and PR across AsiaIndonesia - Social Media and PR across Asia
Photo Credits: http://www.bijt.org/


4 TRENDS

Our team believes that mobile phone users can better relate to Web 1.5 rather than Web 2.0. Instead of using social media applications in mobile phones, it may be more useful for businesses to engage in e-commerce or mobile marketing.

However, with the commitment and resources that the government and industry leaders are channeling into mobile social media, it is possible that mobile phones could be the primary medium used for driving the social media scene in Indonesia. This comes as no surprise as there are three times as many mobile users as compared to Internet users. In addition, mobile phone users are more familiar and know how to maximize their phones, therefore will be interested and find it relevant to use mobile social media applications.

Internet and multimedia services provider PT Indosat Mega Media launched a new IM2 ECO! packages in October 2007, giving customers access to high speed wireless 3.5G broadband in major cities at a monthly fee of US$17.64. This will make broadband internet connectability more affordable across the archipelago.

"The ECO!, in this respect, could be seen as a solution, particularly for students who need to regularly access the Internet on a budget," IM2 executive chairman Indar Atmanto said at a media briefing.

"I took Indosat 3.5G package for Rp350.000/month (about SGD50) and got a Chinese-made 3.5G USB Modem (either ZTE or Huawei) for free and limited 1.2Gbyte internet access. All I need to provide is my Indonesian ID card and credit card number. The speed is much higher than Indonesian ADSL (Speedy), which is about 1000 kbit/sec compared to 396 Kbit/sec on Speedy," said Kosasih, founder of edu2000.org, in response to the latest internet development in Indonesia in our interview.

This initiative will further increase internet penetration via mobile phones.





Indonesia: Mobile landscape - Social Media and PR across Asia


mingwei.yap.2005
mingwei.yap.2005
Latest page update: made by mingwei.yap.2005 , May 29 2008, 4:22 PM EDT (about this update About This Update mingwei.yap.2005 Edited by mingwei.yap.2005

1 image added

view changes

- complete history)
More Info: links to this page

There are no threads for this page. 

Anonymous  (Get credit for your thread)


Related Content

  (what's this?Related ContentThanks to keyword tags, links to related pages and threads are added to the bottom of your pages. Up to 15 links are shown, determined by matching tags and by how recently the content was updated; keeping the most current at the top. Share your feedback on Wetpaint Central.)