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Indosat-Nokia Partnership: A Positive Shift for Indonesia’s Mobile Forecasts
Indosat Ooredoo Hutchison partnered with Nokia to enhance 4G and 5G networks, increasing future subscription forecasts while facing challenges in consumer interest and competition from Telkomsel. Expansion efforts target rural connectivity.
Indosat Ooredoo Hutchison partnered with Nokia to enhance 4G and 5G networks, increasing future subscription forecasts while facing challenges in consumer interest and competition from Telkomsel. Expansion efforts target rural connectivity.
Latest Development: Indosat Ooredoo Hutchison (IOH) has signed a deal with Nokia to expand its 4G and 5G networks, marking its latest effort to accelerate the adoption of emerging technologies. For Nokia, this represents another step in their strategy to focus on emerging economies, which are experiencing relatively higher uptake rates compared to developed counterparts.
Market Implications: This development has caused a moderately upwards revision to our 4G and 5G forecasts, where much of the momentum is due to reside within the short term (2025-2027). We now forecast that 4G and 5G subscriptions will reach 167.6mn and 218.6mn, respectively, by the end of our forecast period in 2033. Consequently, there will be a corresponding decline in lower-speed technologies (2G and 3G), with 2G expected to be phased out by the end of 2028 and 3G by the end of 2029. With this revision, our outlook remains steadily positive; however, we maintain the view that the rate of growth will be somewhat modest, reflecting the saturated mobile market in Indonesia.
The main challenge to 5G uptake remains the elusive consumer interest in the technology, which consequently dampens operators’ and tower companies’ motivation to upgrade their sites. Organic growth within the market would be difficult, particularly against the largest mobile player, Telkomsel. Despite this, Indosat is focusing on expanding connectivity into rural areas, in an effort to reduce the digital divide between urban and rural regions. This is within their scope due to their strong position among the youth with their youth-focused prepaid plans, which offer data at low prices.
In a significant development for Indonesia’s telecommunications landscape, the partnership between Indosat Ooredoo and Nokia heralds a transformative phase for mobile connectivity in the region. This alliance is poised to enhance network capacity and quality, enabling the rollout of advanced technologies such as 5G. As a leading mobile operator, Indosat aims to meet the increasing demand for high-speed internet services, particularly in urban and suburban areas, positioning itself for robust customer growth.
The collaboration is expected to positively impact Indonesia’s mobile market forecasts, reflecting an upward revision in growth projections. By leveraging Nokia’s cutting-edge technology, Indosat can enhance its service offerings, ultimately improving user experience and satisfaction. This not only strengthens Indosat’s competitive stance against rivals but also contributes to the overall advancement of Indonesia’s digital ecosystem.
As the partnership progresses, it may stimulate further investment in infrastructure, paving the way for innovation and economic growth. Enhanced connectivity can lead to broader digital inclusivity, allowing more Indonesians to access essential services, education, and business opportunities, thereby contributing to the nation’s development goals.
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