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Data Usage Boosts Telkom Indonesia’s Revenue 14%

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Data Usage Boosts Telkom Indonesia’s Revenue 14%

The largest telecommunications services company in Indonesia Telekomunikasi Indonesia a.k.a Telkom Indonesia reported its revenue earnings in the quarter. According to the results, the Group’s overall revenue has grown 14%. Its net profit surged 27.6% year-on-year to 14.7 trillion rupiahs ($1.1 billion).

Telkom Indonesia accounts the growth in data consumption for the rise in revenue. The contribution from the data services has increased almost 37% since the beginning of the year.

Commenting on the trend, President Alex J. Sinaga said, “The significant growth in data, internet and IT service businesses is in line with the direction the company is taking to transform into a digital telecommunication company.”

Also, the mobile subsidiary of Telkom Indonesia, Telkomsel is the largest contributor towards the Group’s revenue. Telkomsel’s digital business grew 40% to 22.2 trillion rupiahs. The number of subscribers has too increased by 37% for a total of 76 million. Telkomsel has nearly 164 million subscribers in total.

Primarily, Telkomsel’s mobile broadband product Telkomsel Flash has registered a 33% increase in its number of users. Now, it has over 50 million users.

Meanwhile, Telkom Indonesia’s competitor XL Axiata did not perform well this quarter. However, it has managed to recover from the loss reported in the previous year. The company, which is the third largest mobile operator by subscribers, registered a net profit of 160 billion rupiahs in the first three-quarter. In 2015, the company faced a heavy loss, of almost 507 billion rupiahs in the same quarter.

XL Axiata reported an increase of smartphone users in its subscriber base. It also said that the average usage per smartphone subscriber has doubled, strengthening the company’s total data traffic by 146%.

“We continue to focus on improving coverage and quality of our data network as we look to establish ourselves as the mobile internet leader in Indonesia,” Dian Siswarini, XL’s president and chief executive officer said to Nikkei Asian Review.

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Ria Lakshman. V is a lead news writer at The Telecom Times. She studied Journalism at Manipal School of Communication and proceeded to work in newspapers and magazines, with technology as her focus area. Passionate about Telecommunications sector, her move to 'The Telecom Times' was a natural choice. Alongside, she also writes for Telecom Talk, where she covers news and tech commentaries in the sector of telecom. In the free time, Ria loves to go camping, read books, or sketch illustrations. She also runs a local design studio and promotes eco-friendly crafts. Ria can be found sharing her knowledge and insights on Twitter.

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