Telecommunication Issues: March 2008

No compensation for internet speedy disruption

Tuesday, March 11, 2008

Telkom, the service provider of Telkom Speedy, decided not to give any compensation to the Speedy users for the losses caused by the disrupted network last week. The state-owned company here said the totally disrupted networks last week were unexpectedly caused by factors beyond Telkom’s control. “Based on the evaluation, the disruption yesterday was beyond Telkom control,” said Eddy Kurnia, Telkom’s Vice President Public Communication and Marketing, last Thursday. Last week, the Speedy users failed to access internet for two days since Friday morning. Finally Telkom shifted the access through the satellite despite the limited capacity. The Indonesian Association of Internet Kiosk (Awari) urged Telkom to provide compensation to the customers. The member of Awari was predicted to suffer losses worth by Rp600,000 per day due to the Speedy disconnection. (Koran Tempo, pg B8)

Add 1,2 m SSL Speedy and 5.000 BTS

Telkom speeded up its infrastructure development to expand market share to anticipate interconnection tariff decrease. Market share Flexi in 2007 was about 55 percent, until the end of 2008, the company targeted at least 60 percent to 65 percent through speeding up its development of BTS at least l 3.000 BTS this year. Meanwhile broadband access Speedy reached 24,000 subscribers in 2007 and would add 1,2 million lines (SSL) in 2008. (Rakyat Merdeka, pg 14)

Record on the national Speedy sales

Telkom’s consumer director I Nyoman G Wiryanata assisted by the executive general manager of Divre II Adeng Ahmad (right) symbolically hands over the award to the Bogor general manager Prasabri Pesti in Bogor, West Java, last week. The award is given due to the record on Speedy National sales reaching 2,422 direct connections on February. (Bisnis Indonesia, pg T8; Investor Daily, pg 10)

Telkomsel and XL has yet got any 3G additional frequency

The Indonesian Telecommunicaiton Regulatory Body (BRTI) said the government has yet to determine the additional 3G frequency for Telkomsel and XL. Member of BRTI Heru Sutadi said the regulator has got proposal requesting the 3G additional frequency from Telkomsel and XL. “however, we are not yet on the position to accept or to reject it. We have to pass on the information that Telkomsel has got 3G addition frequency by 5Mhz,” he said. (Bisnis Indonesia, pg T7)

FAVORITE COMPANY 2007

Telkomsel President Director Kiskenda Suriahardja posed during a seminar and Favorite Company and CEO 2007 in Jakarta (28/2). Telkomsel get "Favorite Company 2007" award based on a survey on 1.000 respondents on favorite companies, perception and expectation of their workers on favorite companies. (Republika, pg 14)

XL and I are a real synergy

Hasnul Suhaimi, the president director of XL: Actually I am not always in cellular. In the first year, I worked for Schlumberger oil company, then moved to Indosat. So, I have changed my jobs twice in my life before moving to XL. When I was at Indosat, I was assigned to work for Telkomsel for two years to become Trade Director, then for IM3. If I see cellular business world, this is high capital business. So, the first thing is coverage. Everyone joining this business has to dare to make investment. In the past four years, we invested Rp2.35 billion or more than Rp20 trillion.
The survivor is anyone who can provide value added to the products. The value added here might be services, innovation, and the product itself. Or, it might be combined with voice, short message service, and value services, such as internet access, television or attractive creativity content.
The dream of cellular world to attain is providing low-priced internet. (Republika, pg 24)

Promotion tariff

A model showed cheap tariff promotion fromPT Excelcomindo Pra- tama (XL) in Jakarta, recently. The operator gives promo tariff to XL Bebas users to call to all operators by Rp 600 per minute in the first one imunte. After that, the price is RpO,00000...1/detik or equal to free of charge. (Bisnis Indonesia, pg T8)

ATSI Chairman Merza Fachys: No local human resources

Chairman of the Indonesian Cellular Telecommunication Association (ATSI) Merza Fachys said the number of local human resources was not enough due to absence of education institution to supply the workers in telecommunication sector. Merza who is also Director of PT Mobile-8 Telecom said many national telecommunication industries used foreign resources due to lack of ready-to-use local resources. If there are local resources, most of them were educated by two largest companies, PT Indosat and PT Telkom. (Investor Daily, pg 24)

Ditjen Postel to evaluate Natrindo performance

Directorate General Post and Telecommunication (Ditjen Postel) planned to reevaluate the use of frequency band which was agreed by PT Natrindo Telepon Seluler (NTS). Postel said the plan was made since the number of Base Transceiver Station (BTS), which was built, was not in line with the agreed frequency band and HP radio frequency fee which has been paid to the state treasurer. (Kontan, pg 14)

Telkom Telecommunication in Palembang Disrupted

The cut off the Fiber Optic (FO) of Telkom at 3.50 a.m. during the development of a flyover in Simpang Polda area, Palembang, caused disruption to all operators which used the FO, including Telkomsel. Due to the incident, two lines of the FO which were used by Telkomsel were disrupted. The two lines are Tanjung Pandan-Tanjung Pakis and Baturaja Prabumulih-Talang Kelapa. (Suara Pembaharuan, pg 20)

LG Cellphone Bundled With Telkomsel

An electronic company from South Korea, LG Electronics Indonesia (LGEIN), is again cooperating with a big operator, Telkomsel. This time LGEIN has bundled the LG KU250 and LG KU380 cellphones with Telkomsel's product. Both GSM cellphones are furnished with 3G technology. (Warta Kota, pg 17)

Telkomsel Gets Outstanding Achievement Award

TELKOMSEL received Outstanding Achievement award for the second time for its first pack products: kartuHALO (post paid) and simPATI prepaid, based on an independent survey over 3.000 respondents in six big cities in Indonesia. Telkomsel Business Director Richard Tan (center) received Top Brand Award 2008 from Marketing Magazine Chief Editor, PJ Rahmat Susanta (left) and Chairman Frontier Consulting Group, Handi Irawan (right) in Jakarta (13/2 ) (Kompas, pg 32)

XL Launched A New Program

A cellular operator, Excelcomindo (XL), launched its latest program, Ancol-XL Extra Excitement 2008, on Monday (3/3), in Hard Rock Cafe, Plaza EX, Jakarta. The launching was a result Of cooperation between XL and PT Taman Impian Jaya Ancol. The ceremony was attended by marketing Director of XL, Nicanor V Santiago, Commercial Director of XL, Joy Wahyudi, Presdient Director of PT Taman Impian Jaya Ancol, Budi Karya Sumadi, and Director of PT Taman Impian Jaya Ancol, Pramonohadi Sayogyo. XL expects that the cooperation will keep the loyalty of customers. (Media Indonesia, pg 7)

XL Searching For Students With Achievements via XLent Heroes

The world of children is identical to the world of playing. But it will be much better if the playing is in a positive way and results in a performance to be proud of. Being motivated by an expectation to realize a young generation of Indonesia with achievements, PT Excelcomindo Pratama, Tbk (XL) held a medium of competition in achievements and talents among students of Senior High Schools and Junior High Schools. The medium, which is called XLent Heroes, is a form of program made by XL in line with the theme of XL Corporate Social Responsibility (CSR), namely "Indonesia of Achievements". (Suara Pembaharuan, pg 20)

Telkom Buyback II Reached 49%

PT Telekomunikasi Indonesia Tbk (TLKM) is reluctant to control back some of its shares in a slow way. The state-owned telecommunication company has been offensively buying back its shares from the market. An officer of Investor Relations and Corporate Secretary of Telkom, Harsya Denny Suryo, explained that the company had done a buy back on 4 March. "We have bought back 1.5 million shares, " he said in an open information to Indonesia Stock Exchange two days ago. In this way the biggest telecommunication company in Indonesia has so far bought back 105.4 million of its shares. The number is almost equal to 49% shares that are allowed to be bought back. (Harian Kontan, pg 6, Harian Seputar Indonesia, pg 7)

To Face Competition, Telkom Boards of Directors Rotated

Perusahaan Telekomunikasi Indonesia Tbk. (Telkom) has announced a rotation and new structure of directors in the company. The position of Consumer Director previously held by Ermady Dahlan, is now held by I Nyoman Gede Wiryanata. On the contrary the position of Director of Network and solution is now held by Ermady Dahlan. Meanwhile the President Director of Telkom is Rinaldi Firmansyah, Financial Director Sudiro Asno, Director of Human Capital and General Affairs Faisal Syam, Director of Network and Solution Ermady Dahlan, Director of Consumers I Nyoman G Wiryanata, Director of Enterprise and Wholesale Arief Yahya, Director of Compliance and Risk Management Prasetio, and Director of IT and Supply Indra Utoyo. (Rakyat Merdeka, pg 13)

After effect of the “3” fight

Still remember with the time GSM cellular operator Hutchison appeared for the first time in the first quarter last year? With its “3” as the brand offering three fold top up voucher, Hutchison could successfully changed the competition in the cellular phone operators market from GSM versus CDMA to GSM versus GSM. The CDMA customers have in fact been growing in number, which reached more than 100 percent above average on the first quarter of 2007 if compared to that of the previous year. However, the rising customers here did not reduce the GSM customers. GSM markets still grow by 22-44 percent in that quarter given that Simpati of Telkomsel got the biggest prepaid customers or about 36 percent. (Marketing, pg 108)

Cigna cooperates with Hutchison for market expansion

PT Asuransi Cigna seeks cooperation with cellular operator Hutchinson CP Telecom (HCPT) with 3 brand for accident and life insurance protection. By topping up Rp100,000 phone credit and registration by free SMS, customers of 3 will get free insurance for 60 days. The insured party of 18-64 years of age deserves to get the premium. “The insurance covers the non hospitalized medication worth by Rp500,000 and insurance coverage worth by up to Rp10 million for accident claim,” the spokesperson said. (Media Indonesia, pg 13, Indo Pos, pg 21, Rakyat Merdeka, pg 20)

Indosat establish cyber bus

Monday, March 10, 2008

Indosat in cooperation with PO Nusantara released the first cyber bus in Indonesia with complete meeting hall and high speed multimedia access.
Andi Samsul Hadi, Head of Central Java & DIY Region Indosat, said the new breakthrough here is in anticipation of corporate customers with high mobility so as to facilitate them to have meeting while they are mobile.
Andi Darmawan the spokesperson of PO Nusantara said the company invested more than Rp4 billion to develop special cyber bus.(Bisnis Indonesia, pg T8)

Questioning About The Threat Of Cellular Against FWA Tariff War/ Bisnis Indonesia

In the last few days television, magazines, newspapers have all reported about new tariffs set by cellular telecommunication operators. Of the so many new promotion programs, the most outstanding is the war of tariffs between PT Excelcomindo Pratama Tbk and PT Indosat Tbk. A member of Indonesian Telecommunication Regulating Board (BRTI), Heru Sutadi, said that sooner or later tariffs of cellular would be similar to tariffs of FWA {fixed wireless access) or cellular based wire telephone. President Director of PT Excelcomindo Pratama (XL), Hasnul Suhaimi, said that marketing cost was set at 5% of the income. According to him of XL last year's income of Rp 8 trillion, about Rp400 billion was spent on marketing. Gede Krishna Jaya, Division Head of Prepaid Brand Management of Indosat, said that they applied a promotional tariff for communication in a transparent way. The transparency in setting the tariff of Indosat can be seen from the calculation of tariff per second, without a rounding off or omission of comma to the amount of customers' call credits. (Bisnis Indonesia, pg T8)

Government Forbids Foreign Investors Involve In Business of Towers

The goverment refuses the coming of foreign investors into the business of telecommunication towers in Indonesia. The decision will be strengthened in regulations on shared towers, which will be issued soon. "We do not want anyforeign investors to involve in business of towers, the value of which amounting to Rp 100 billion a year. This is an opportunity for local industry," said Director General of Post and Telecommunication, Basuki Yusuf Iskandar, in a hearing with Commission I of the House (DPR RI) on Tuesday (4/3). The decision is closely related to the plan of some telecommunication operators in Indonesia to release their towers. PT Excelcomindo Pratama, for instance, will separate the business of towers and will then sell a maximum of 80% of its shares to third party including foreign investors. (Investor Daily, pg 24)

USO project is re-tendered

The government readies to re-open tender for universal service obligation (USO) program. The Minister for Communication and Information Muhammad Nuh said the tender will be held in March or April this year. “Thousands of villages have been waiting for the project here,” he said last Monday following the release of Indonesian ICT Award 2008 at his office Jakarta. He admitted the legal suit of PT Asia Cellular Satellite (AceS) did not bother him. He even believed that the government will win over the case due to the government’s evidences on the some schemes of five schemes as the requirement of prior tender, but the participants failed to meet them. (Koran Tempo, pg B8)

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