Transforming Our Society through Telecommunications

Telecommunications world has begun expanding fast in every nation, in every continent. There are more than hundreds of telecommunication networks all over the world. Operators are mastering the demands of technological and regulatory changes while illustrating transparency, customer innovation and bringing new services to the market.

Indonesia is one of the world’s most advanced countries in Asia who has the best telecommunications industry while servicing millions of subscribers in its archipelago from its capital, Jakarta to other islands. XL Axiata, a subsidiary of Axis Capital Group, PT Telekomsel and Indosat, the three largest telecommunications network in Indonesia continuously seek solutions to unending need for development and growth in the industry.

Let us all review some industry-focused knowledge on emerging and expanding telecom issues:

1. Growth of Mobile Money

As the telecommunications sector turns to a new growth agenda, mobile money services are becoming more important than ever.

The acceleration of mobile remittance services alongside new mobile payments highlights the opportunities for the mobile phone to redefine the movement of money by:

• Lowering costs

• Increasing convenience

• Reducing fraud

Interestingly, many of the most successful services worldwide have originated in developed Asia, where mobile contactless services are well established, alongside money transfer services in emerging markets. However, opportunities have yet to be uncovered in many developed markets, where financial inclusion is higher and where there is a greater diversity of existing payments channels.

2. The Need for Privacy and Security Growing

Privacy remains a significant issue for many telecommunications operators and poses ever-increasing challenges. This should come as no surprise; operators capture and hold enormous amounts of data on their customers.

Factors such as new services, the continued digitization of information, as well as more accessible and ever cheaper digital storage, have only increased (and will continue to increase) the amount and level of sensitivity of the personal data operators accumulate.

3. An industry in Transformation

The telecom industry is transforming before our very eyes. And in many instances, there are no hard set rules for the new digital platforms, tools and lifecycle in which they live.

In this industry more than any other, therefore, embracing a strategic, forward-looking business model is critical to survival and success. The transformation that has gripped the landscape presents you with challenges, risks and opportunities as never before. With continued pressure from new players entering the market, operators must continually find ways to stay ahead of the game. Strategies include investment in next-generation technologies and alternative network sourcing arrangements.