Opensignal: Starlink Is Widely Used In Rural Areas Compared To FWA

JAKARTA - Opendignal's latest report reveals that internet services using Starlink satellites are used more by users in rural areas.

Where nearly 60% of Starlink users come from rural areas, much higher than only 24% of Fixed Wireless Access (FWA) users, and only 7% of immovable phone services, the majority of which are concentrated in urban areas.

In all regions, Opensignal noted, Starlink's strongest presence in less urban areas such as Kalimantan, Sulawesi, Maluku, and Papua, while FWA dominated Java.

The pattern underscores Starlink's role as a filler of rural connectivity gaps, which target areas where fiber and mobile FWA reach is limited, the report reads.

Opensignal assesses that the low presence of FWA in rural areas in Indonesia may be related to the high cost of backhaul and the low level of return on investment anticipated by operators.

As a result, districts in Kalimantan, Maluku, and Papua recorded a higher time proportion without cellular signals, with some regions exceeding 5% of the time without connectivity.

"On the other hand, most districts in western Indonesia are experiencing a relatively low level of signal insecurity," the company added.

Even so, Starlink's widespread adoption is still hampered by the high cost of hardware and data subscriptions. This is a major obstacle for rural households with limited purchasing power.

In contrast, FWA services are considered more affordable and are a popular choice for most households looking for fixed internet connections at lower costs.

Kit Starlink Mini's hardware costs in Indonesia currently reach IDR 4.75 million or USD 291, well above the 4G FWA router from IOH, Telkomsel, or XL, starting from around IDR 400,000.