A Study of Fixed and Mobile Convergence Innovation: Preliminary Research on Telecommunication in Indonesia
Gunadi Dwi Hantoro1, Muhtosim Arief2, Firdaus Alamsjah3, Elidjen4

BINUS UNIVERSITY

Abstract

The number of users and customers of fixed and mobile broadband networks in Indonesia is growing quite rapidly. This is driven by several factors, namely the increasing population, changes in customer behaviour, more affordable tariffs, and a wide range of operator choices. Users can select operators offering attractive features both in terms of products and pricing.

The current development of the telco industry worldwide presents a rather discouraging situation for operators. Besides connectivity becoming a commodity, revenue tends to remain stagnant and even decline in some countries. Despite the significant surge in rapidly increasing traffic, the investments made in infrastructure are mainly used to accommodate such traffic.

With numerous operators capable of providing broadband services, each one strives to be chosen by users or customers. Operators are innovating their services to sustain their companies. Some examples of broadband operators in Indonesia are Telkom, Indosat, and XL. One of the innovations chosen by these three operators is the development of Fixed Mobile Convergence (FMC) products, combining Fixed and Mobile Broadband technologies.

The research methodology used is qualitative, where the researcher conducted interviews with experts and management from several Telco players in Indonesia and benchmarked against NTT Japan. From the interview results, it was found that FMC innovation is highly important for both fixed and mobile broadband players. There are several advantages to implementing FMC, including infrastructure deployment efficiency, customer satisfaction, revenue generation, and churn reduction.

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Topic: Business and Economic