Mobile subscription wars heat up in Indonesia

The entrenched leaders of the industry may be losing their historic advantage.

In IndonesiaÆs mobile telecoms market, the incumbentsÆ competitive advantage of having large subscriber and base station networks is slowly but surely being eroded, says Macquarie Research. Interconnection tariffs are set to be revised down, so a pricing war is likely to spread from on-net calls to off-net calls.

Macquarie believes that the leaders, Telkomsel in which Telkom Indonesia, majority-owned by the Indonesian government, has a 65% holding and Singtel the remaining 35% and Indosat face difficult times ahead, ôwith capex...

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