Data Summary
Indonesia youth mobile spending peaked in 2008 at $3.4 billion and continues to fall. Youth mobile spending falls to $2.6 billion in 2012.
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Background Article
Key Facts
- Revenue from youth mobile reached a high of $3.4 billion in 2008 and have been declining since
- Rapidly growing adoption of Internet usage on their mobile phones is driving the Indonesian youth away from spending money on airtime and SMS.
- Mobile has taken over PC as the choice of Internet point-of-access due to lower cost and better fit to the social lives of Indonesia’s youth.
Article
Indonesia youth mobile spending peaked in 2008 at $3.4 billion and has been on a decline. Youth mobile revenues will fall to $2.6 billion in 2012.
While revenues have been decreasing, the share of revenue from data usage has been gradually increasing. 48% of Average Revenue Per user (ARPU) for Indonesian youth comes from data consumption on their mobile phones. 15-19 year olds spend 77% of their mobile expenses on data usage. For 20-24 year olds this figure is 60%. XL Axiata, one of the biggest operators in Indonesia, recently claimed that it expected revenue from data usage to compensate for slower revenue growth from voice calls and decrease in revenues from text messaging. Indonesia crossed 1 million mobile internet users in June 2009.
With broadband penetrations below 1%, mobile phone handsets are the de-facto touchpoints of Internet access for Indonesia’s youth. An online survey of 228 Indonesian youth aged 17-24 revealed that 29% favor accessing the Internet using their mobile handsets while 26% favored a PC. As brutal price wars between service providers level-off, mobile Internet offers a new source of revenue for those targeting the Indonesian youth.
One of the biggest drivers behind the rise of mobile Internet is the emergence of Blackberry. With prices within reach of the growing middle class, many Indonesian youth use Blackberry as their primary phone of choice. In Indonesia, a Blackberry costs around US$500 where as an iPhone costs around US$900. Added to this was the lower cost of Internet access on mobile compared to a broadband at home. Indonesian youth have the convenience of spending $17 a month for unlimited data usage on a prepaid plan. They are, however, forced to spend $100 on a home broadband connection.
Balckberry’s in-built messaging service – Blackberry messenger (BBM) – is already replacing SMS because it’s easy and free to share updates and information. Users of Blackberry have also increasingly accessed online social services like Facebook and Twitter contributing to the growth in mobile data usage.
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