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5G networks

5G pushes crowded Indonesian telecom field toward 3 big carriers

Low margins and high capital spending spark industrywide shakeout

Spending on 5G infrastructure in Indonesia has lagged as stiff competition squeezed earnings at wireless carriers   © Reuters

JAKARTA -- A wave of consolidation is hitting Indonesia's crowded wireless telecom sector, a market that once featured seven operators jostling for position, as the strain of 5G investment may reduce the field to just three big players.

The stakes are high. Indonesia is the most populous Southeast Asian country and is expected to have one of the world's biggest digital economies at $124 billion in 2025, data from Google and others show, triple the size last year.

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