On the last ten years, telecommunication industry in Indonesia has passed through several transformations on network and service convergence. In this digitally disrupted era, there is change of communication trends from voice and text message communication to data-based application communication (Over-the-Top communications) resulted decline of company revenue. However, telecommunication should have had big role, therefore company should adapt the strategy to catch that opportunity. The aim of this research is to investigate the determinants of innovation strategy in Indonesia telecommunication industry. This research is conducted qualitatively with semi-structured interviews. Strong evidences are shown that product innovation is done the most both in Indonesia and other developed countries. The results indicate that the criteria information technology infrastructure, digital customer experience, business process, profitability, and the quality of product/service are the determinants on the design of innovation strategy in Indonesia telecommunication industry.