Telecom Sector Analysis: Competition and Growth Prospects

Intensifying Competition in Indonesian Telecom Market

The Indonesian telecommunications industry is bracing for continued intense competition, with price wars and efforts to increase Average Revenue Per User (ARPU) remaining key challenges ¹

. Despite the competitive pressures, analysts from BRI Danareksa Sekuritas maintain a positive outlook on the sector for early next year, citing potential catalysts such as price recovery and network monetization following major operator consolidations ²

Source 2

https://investasi.kontan.co.id/news/intip-rekomendasi-saham-sektor-telekomunikasi-di-tengah-persaingan-yang-ketat

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Key Players and Their Growth Prospects

1. PT Indosat Tbk (ISAT): The company has entered a strong price repair phase with significant yield increases on IM3 and Hutch packages ²
   Source 2

   https://investasi.kontan.co.id/news/intip-rekomendasi-saham-sektor-telekomunikasi-di-tengah-persaingan-yang-ketat
   . ISAT has also collaborated with Qualcomm to enhance network performance and efficiency through AI-powered solutions ¹
   Source 1

   https://investasi.kontan.co.id/news/persaingan-tarif-ketat-cek-rekomendasi-saham-emiten-sektor-telekomunikasi
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2. PT XL Axiata Tbk (EXCL): EXCL is in a post-network integration phase, which has improved service capacity and quality, potentially supporting double-digit EBITDA growth in 2026-2027 ²
   Source 2

   https://investasi.kontan.co.id/news/intip-rekomendasi-saham-sektor-telekomunikasi-di-tengah-persaingan-yang-ketat
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3. PT Telkom Indonesia Tbk (TLKM): TLKM is expected to benefit from valuation catalysts including the spin-off of fiber assets and the planned entry of strategic partners in 2026 ²
   Source 2

   https://investasi.kontan.co.id/news/intip-rekomendasi-saham-sektor-telekomunikasi-di-tengah-persaingan-yang-ketat
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Financial Performance Highlights

ISAT reported total revenue of Rp 41.16 trillion for January-September 2025, a 1.55% year-on-year decline due to decreases in cellular and fixed telecommunication revenues ¹

. Despite this, the company's collaboration with Qualcomm is expected to optimize network operations and reduce costs.

Sector Outlook

The telecom sector's prospects appear positive despite intense competition, driven by consolidation benefits and technological advancements. Analysts recommend monitoring key developments in price trends and network monetization strategies across major operators.