Indonesia to be next big bang broadband country?

Indonesia is one of the leaders among the countries with the highest broadband growth rates. It has experienced an increase of 41.8% in its subscriber base in the second quarter of 2007.

Indonesia also comes first as the country with the highest annual growth rate, 222.88%, according to World Broadband Statistics: Q2 2007 published by the analyst company Point Topic.

This represents a growth pattern often seen in emerging broadband markets. Historically such explosive increases in broadband subscribers have signaled the start of periods of sustained uptake.

Some words of warning however. It must be stressed that this is from a comparatively low subscriber base to start with, only around 50,000 subscribers a year ago.

There are also questions over Indonesia’s infrastructure and its geography and population distribution may all offer unique challenges to the continued rapid growth in broadband subscribers.

‘This growth was mainly due to one operator PT Telekom, who significantly expanded its market coverage over last few months,’ says Pamela Varley, Point Topic Research Analyst.

A quarterly increase in broadband subscribers was also seen across Asia-Pacific. However, the annual growth rate for the region is low in comparison with other parts of the world.

Two countries in the region, Japan and South Korea, are among the top ten countries of broadband subscribers. Japan (27 million subscribers) is third after first USA (64 million subscribers) and second China (almost 60 million) while South Korea is sixth.

DSL is still the dominant technology in the world’s top ten countries with over 152 million subscribers which means 64.29% of the total number of broadband subscribers. Second is cable modem with almost 53 million subscribers (22.25%). FTTx subscribers constitute about 30 million (12.84%) of the total.