Communication has been ingrained to human since thousands of years ago.
Human starts to communicate with other human through body language. In modern
era, human start to use electronics to do long distance communications. As
telecommunication is a common thing, telec ommunication start to emerge to keep
up the demand and trend. Telecommunication companies in Indonesia itself is in
the unique era. Due to the advancement of network technology, mobile phone users
are in the highest era. In the other side financial performance of telecommunication
company is in the problem. This is why, this research would like to see the effect
of network technology to the profitability of telecommunication industry in before
4G era and after 4G era, listed in Indonesia stock exchange between 2007 – 2017.
Researcher examining the effect of network technology as a control variable, return
on equity as dependent variable, and net profit margin, total assets turnover, and
equity multiplier as independent variable. Researcher also examine descriptively of
effect market adjusted return before and after 4G era. Overall, total assets turnover
and net profit margin effect the profitability the most both in 3G and 4G era. And
for market adjusted return effected by network technology advancement.
Recommendations for this research is to increase the scopes and variables.
Researcher also recommend further research to modify the research model for more
understanding about this topic.