A recent research report published by AC Nielsen state that Indonesia’s mobile growth is driven by teens from the age of 10-19. The report also state that handphone ownership in Indonesia is now 54% from the entire population, growing rapidly from 20% in 2005, while landline phone freefalling from 25% in 2005 to 11%.

The data shows that teenagers are dominating the handphone ownership throughout the country. The number of teens aged 10-14 increasing compared to 5 years ago, with instant messaging or chatting as the top use of the phones. They also prefer instant messaging and online chatting over voice calls or texting, which is the reason why telco provider have been experiencing the downfall of revenue from voice and text and gain from data instead.

“The Indonesian telecommunications market is unique. While consumers in most countries progress from ‘no connections’ to adopting landlines and subsequently cellular or mobile devices, consumers in Indonesia have mostly headed straight to mobile phones as their communication tool. This is a key reason why landlines or fixed lines have never really taken off in the country, with penetration remaining relatively flat over the years,” said Viraj Juthani, Nielsen Company, Indonesia.

What’s more, Indonesian mobile subscribers are spending less now than they were five years ago, with 58 perecent of consumers spending less than Rp. 50,000 (@USD 5) per month in 2010 compared to only 18 perecent in 2005.

“The decline in average monthly spending is driven by two factors: Tariffs over the last few years have headed south and, more importantly, new consumer segments with limited spending capacity are entering the market,” said Viraj.

Low rates remain the top factor for consumers when selecting a service provider, but most consider the reputation of networks and recommendations of friends and family, indicating that while dropping tariffs are starting to drive operator choice, consumers continue to be concerned about service quality when making their choice. (NielsenWire)