The total telecom services revenue in Indonesia is expected to increase at a compound annual growth rate (CAGR) of 3.7% during 2024-2029, led by rising mobile data usage and accelerating fiber adoption. The shift from traditional voice to data-centric consumption underscores operators’ push toward higher-value 5G and FTTH services, signaling a competitive phase marked by infrastructure upgrades, premium plans, and widening access that will redefine user experience and market structure, reveals GlobalData, a leading data and analytics company.

GlobalData’s Indonesia Telecom Operators Country Intelligence Report reveals that the  mobile voice service revenue will decline during the forecast period, due to the free bundling of voice minutes by MNOs into their mobile plans, rising user preference for OTT/internet communication services and the subsequent decline in mobile voice ARPU levels.

Mobile data service revenue, on the other hand, will continue to increase at a healthy CAGR of 5.3% over the forecast period, fueled by the growing adoption of higher ARPU-5G services. High-data quotas and premium unlimited plans will further drive revenue growth in the mobile data segment.

Srikanth Vaidya, Telecom Analyst at GlobalData, says: “4G services accounted for a majority share of the overall mobile subscriptions in 2024 in Indonesia and will remain the leading mobile technology through 2029. However, 5G subscriptions will increase at a faster pace over the forecast period, driven by the ongoing 5G network expansions by major MNOs, and wider availability and affordability of 5G smartphones.”

For example, in June 2025, Telkomsel extended its 5G network coverage in the city of Batam by deploying additional 5G base transceiver stations (BTS) in key areas of the city, taking the total BTS units to about 112 and improving 5G connections in key commercial and residential areas like Harbour Bay, Nagoya, Batam Center, Engku Putri and Hang Nadim Airport.

In the fixed communication services segment, fixed voice service revenue will decrease at a CAGR of 2.5%, due to a drop in circuit switched subscriptions and a decline in voice ARPU levels. Fixed broadband service revenue on the other hand will grow at a CAGR of 4.5% over 2024-2029 period, driven by the growth in FTTH subscriptions.

Growing demand for higher-speed broadband connectivity and the expansion of fiber-optic network infrastructure by the government and telcos across the country will support fiber broadband subscriptions’ growth over the forecast period. New FTTH service options introduced by leading service providers and the expansion of FTTH networks by local ISPs will continue to drive fiber optic subscriber growth in the country over the forecast period.

Vaidaya concludes: “Telkomsel will maintain its lead in the mobile services market through the forecast period thanks to its wider 4G coverage and aggressive efforts to expand its 5G network infrastructure. The telco achieved over 97% population coverage for 4G as of December 2024 and operates over 3,000 5G base stations across 56 cities as of mid-2025. In the fixed services segment, Telkom Indonesia topped both fixed voice and fixed broadband service segments. Telkom Indonesia has strengthened its position through the integration of IndiHome under its FMC strategy, enabling unified mobile and home broadband services.”