Friday, January 22, 2016

Indonesia Mobile Should Consolidate from 10 to 4, Minister Says

“Use it or lose it,” Indonesian mobile operators essentially have been told by Rudiantara Rudiantara, Indonesia Minister of Communications and Information Technology.

The concern is that, of the 10 licenses issued, not all licensees are actively building facilities to launch service.

"Each permit has requirements for the operator to invest and to build, so if they don’t build anything, I can revoke their permit," said Rudiantara,

The minister also urges the industry to consolidate.

Indonesia should have a maximum of four mobile operators by the time the minister’s term ends in 2019 and smaller players should either merge or exit the industry, said Rudiantara.

The suggestion to consolidate to four national providers reflects nearly-universal belief among mobile industry regulators that three to four mobile operators are optimal for competition and sustainability.

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