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Telco minister reportedly says smaller players must merge or build out networks.
Indonesia’s telecoms minister has threatened to revoke the licences of most of the country’s mobile operators unless they merge with one another or build out their networks.
Rudiantara, minister of communications and information technology, was quoted by Bloomberg on Tuesday as saying that some of Indonesia’s licensed mobile operators are not fulfilling deployment obligations despite being fined.
"Each permit has requirements for the operator to invest and to build, so if they don’t build anything, I can revoke their permit," he said in the report.
There are 10 licensed mobile operators in Indonesia, but the market is dominated by the big three – Telkomsel, Indosat, and XL Axiata – which between them command a market share of 80%.
The likes of 3 Indonesia, Bakrie Telecom, and TD-LTE operator Bolt, among others, are fighting over the remaining 20%.
Rudiantara said in Tuesday’s Bloomberg report that Indonesia should have a maximum of four operators by the time his term ends in 2019.
"I will suggest they consolidate to have the capability to invest and retain their permits," he said.
