Indonesia's telecommunications sector, dominated by a "healthy oligopoly" of three major players, is at a critical juncture. Despite controlling 95% of the market's revenue, the industry faces significant challenges, including a low average revenue per user (ARPU) due to a highly competitive prepaid market, slow 5G deployment resulting from limited and fragmented spectrum, and a talent shortage that hinders innovation. Cybersecurity threats and the need for significant capital expenditure further strain operators, leaving them vulnerable to becoming mere commodity providers squeezed by over-the-top (OTT) platforms. These core problems present a stagnation trap that could prevent the industry from reaching its full potential. However, the sector also has immense potential to become a strategic enabler of Indonesia's digital economy. With a large and growing population, a strong economy, and a high projected telecom revenue growth rate, the country offers unique opportunities. By prioritizing infrastructure sharing, accelerating the release of more mid-band spectrum, and diversifying revenue streams beyond connectivity into areas like enterprise services and digital ecosystems, telcos can unlock new growth. Responsible adoption of AI and adherence to new data protection laws can also build trust and create a competitive advantage. To realize this vision, policymakers must adopt a pro-growth regulatory approach that encourages collaboration and investment, while the industry focuses on upskilling its workforce and expanding its services to support national goals in health, education, and industry.Source: https://moderndiplomacy.eu/2025/08/25/indonesias-telco-crossroad-challenges-and-opportunities-in-the-global-south/ (ICE GIACARTA)

Fonte notizia: Modern Dipoomacy, 25 August 2025