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Japanese Telecom Venture Targets Indonesia With $3 Billion Network Plan

The partnership aims to connect 40 million households in underserved regions by 2026
Japan
n 9432.TSE n 6701.TSE Blue Chip 150 OM 60 Tech 350
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NTT Docomo and NEC are joining forces to challenge Huawei’s dominance in Indonesia’s telecommunications market through their joint venture Orex Sai. The company signed a preliminary agreement with Indonesian communications provider Surge to develop a high-speed network across the archipelago.

The project, valued at $3 billion over ten years, focuses on expanding coverage to underserved areas, particularly targeting Java island’s railway corridors. Surge plans to leverage Orex Sai’s Open RAN technology, which allows integration of equipment from multiple vendors, potentially reducing costs and dependence on single suppliers.

The venture arrives as Indonesia, home to 280 million people, emerges as a key battleground for global telecom players. While Huawei currently dominates the Asian market with over 30% share in communication base stations, according to Omdia research, Japanese firms hold only minor positions.

The initiative has backing from Japan’s government, which signed an agreement with Indonesia last October to support Open RAN development. Orex Sai expects additional support for upcoming demonstrations and financing from the Japan Bank for International Cooperation.

Testing is scheduled to begin in fiscal 2025, with commercial operations planned for spring 2026, though the venture faces competition from established players Nokia and Huawei in securing market share.

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