Elevating 5G with differentiated connectivity in Indonesia

One in three Indonesian 5G users experience connectivity issues in crowded areas and underground locations

From the expansive Grand Indonesia shopping mall to the impressive Gelora Bung Karno Stadium or the majestic Borobudur Temple, Ericsson ConsumerLab research shows that 34 percent of 5G users in Indonesia experience occasional or frequent connectivity issues in high-traffic locations like retail centers, stadiums and arenas, tourist attractions, airports, and other public transportation hubs.

These insights underline the unique opportunities being opened up to service providers through 5G differentiated connectivity in Indonesia, one of Southeast Asia’s most dynamic digital economies. Enhancing 5G infrastructure will improve connectivity, even in geographical locations where telecommunications services have historically been poor, and enable service providers to boost their net promoter scores (NPS) by ensuring positive network experiences for their customers.

Connectivity issues impact enjoyment at big events for one-fifth of Indonesian 5G users

Ericsson ConsumerLab research shows that a significant 72 percent of 5G users in Indonesia recognize that they are affected by connectivity issues, especially in high-traffic areas such as stadiums, outdoor event venues and tourist attractions. 

Whether livestreaming from Java Jazz Festival, video calling friends from the Indonesia Open badminton tournament, or soaking up the atmosphere at the month-long Jakarta Fair, one in five of those surveyed reported that their overall enjoyment of a major event or tourist venue is negatively affected if network congestion causes them to have connectivity issues. By aligning network performance with user expectations, service providers can deliver more value and better experiences for their users, fostering great customer loyalty.

Half of all Indonesian 5G early adopters are willing to pay for differentiated connectivity

There is a growing appetite for differentiated connectivity in Indonesia, according to Ericsson ConsumerLab research. The findings show that 50 percent of 5G early adopters are interested and willing to pay for differentiated connectivity that guarantees better performance for essential tasks, such as making video calls on WhatsApp, streaming the latest shows on Vidio, or using apps for secure payments and ride-hailing like GoPay and Gojek. Notably, this is a higher percentage than in most other countries globally. In fact, 32 percent of 5G users in Indonesia, known as “Assurance Seekers”, are actively seeking elevated connectivity for essential applications.

To start unlocking the full revenue growth potential of 5G differentiated connectivity, service providers must develop actionable segmentation strategies that identify key consumer groups, such as the “Assurance Seekers”.

The graph shows the willingness of Indonesian 5G users to pay for differentiated connectivity compared to 5G users worldwide.

Indonesian 5G users are prepared to pay up to 14 percent more for differentiated connectivity

The Ericsson ConsumerLab survey has identified two segments of Indonesian 5G users that could be early adopters of differentiated connectivity and are willing to pay 11 to 14 percent more for performance assurance.

“Performance Strivers”, who make up 18 percent of Indonesia’s 5G user base, are high mobile data users who are deeply engaged with apps and demand superior performance for activities like video conferencing, cloud gaming, and uploading TikTok videos on the go. Whereas “Assurance Seekers”, who make up 32 percent, are satisfied with 5G but would still prefer to pay for elevated connectivity to ensure essential apps like WhatsApp and GoPay work seamlessly, regardless of their location. 

For service providers, the path forward for revenue growth will involve building a portfolio of differentiated connectivity offerings that are clear, compelling and aligned with user needs, while also exposing network APIs to developers.

The graph outlines the five stages of 5G revenue generation and shows that a willingness to pay up to 14 percent more for differentiated connectivity opens up unique opportunities for service providers to develop new business models.

The graph outlines these five stages of 5G revenue growth and shows the ARPU increases that are possible for Australian service providers who transition to new business models.