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Indonesia’s telcos cite lack of demand, delay 5G rollout

Major telecommunication firms in Indonesia saw “no urgency” in an aggressive pursuit of 5G deployment in the archipelago, citing that the country still lacked use cases to fuel enough demand for such high-speed connectivity, either from individual or enterprise customers.

The telecom industry defended its hesitancy, noting that local providers were currently facing financial challenges and had limited capacity to invest in new infrastructure.

Vivek Sood, Group CEO of XL’s parent company Axiata, said there was little difference between 4G and 5G connections for individual users given that the main use of connectivity was limited to social media and video streaming apps.

This has raised the question as to whether telecom firms can justify the higher price for 5G connections to compensate their costly investments.

Alternatively, firms could turn to the enterprise market, which is deemed to have higher buying power, but there have been very few use cases of 5G adoption by Asian businesses, except in China, South Korea and Japan. The Jakarta Post

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