Telecommunication Issues: July 2009

Worry Free BlackBerry solution from AXIS

Tuesday, July 28, 2009

BlackBerry fever is upon us. Many network operators or pro\aders are rushing to offer additional facilities and features to lure customers. Internet access seems to be the main requirement nowadays, so that is why almost all operators offer a bundling package using a sophisticated handset like the BlackBerry. However, due to the numerous bundling programs customers are often confused in selecting the appropriate package for their needs. Now, AXIS has solutions to eliminate such confusion.

AXIS is offering a superior service and data package for those who need access while traveling. Since its recent launch, the Worry Free BlackBerry from AXIS received an enthusiastic welcome from thousands of customers during the initial registration period. / The Jakarta Post, pg 18

Telecommunication Sector Increases 11 Percent

PT CIMB-GK Securities Indonesia reviews that Indonesia telecommunication sector will record 11 percent year on year increasing income on 2009. It means rebound two percent compare to previous year. It was sued by President Director PT CIMB-GK Securities Indonesia Bernard Thien in Jakarta, Monday (27/7). PT CIMB-GK Securities Indonesia announced too that PT Excelcomindo Tbk (XL) has most tight balance and lost its subscriber’s price elasticity, while Indosat has take benefit from reduce the tariff. CIMG viewed that Telkomsel has consumer base with less price elastic so tariff move will not respond fast by its customers. / Indo Pos, pg 17

Predictions for Indonesia’s telecommunications market

Indonesia’s wireless communications market has made significant progress over the last five years.Telkoms Speedy DSL, has made progress in the market by upgrading the available speed and reducing tariffs. Telkomsel, while still very profitable by industry standards. The largest three mobile operators in the market still have significant market power, with Telkomsel, Indosat and XL serving 78 percent of all market subscribers at the end of 2008. CDMA operator Mobile 8 is reportedly closer to selling a strategic stake in its business, while rival Bakrie (Telecom) expects to merge by 2010 with a CDMA or GSM operator while the smaller GSM players such as Hutchison and Axis could also partake in merger and acquisition activity. / The Jakarta Post, pg 16

Competition leads to handset affordability

Mobile phone operators are increasing in number. Today, there are eight GSM and three CDMA operators. Rakhmat Junaedi, corporate services director of Bakrie Telecom, reminded operators to be more cautious after the government put into effect in April 2008 the new interconnection rate, which has caused the retail tariff for subscribers to decline by 40 percent. Consumers are the target of bombastic promotion campaigns. Indosat says that you only need Rp 1 to make a phone call, while Excelcomindo offers free calls for 24 hours. Every operator has to be extra creative and innovative to lure new subscribers. Previously there were only three operators that provided this facility, namely Telkomsel, Indosat and XL. Recently, Natrindo with its Axis brand jumped onto the bandwagon. / The Jakarta Post, pg 17

BWA Winner prepared to bring affordable internet around

Winner of broadband wireless access (BWA) license tender convinced of providing affordable high speed internet access. Winner of BWA license promised to apply the regulation to include minimum 30% local content rule. Opinion grouped from PT Intermix Director Adnan Nisar and PT Indosat Mega Media (IM2) President Director Indar Atmanto in Jakarta, not a while ago. Intermix is the license holder for zones of Banten, Jakarta, Bogor, Depok, Tangerang and Bekasi, while IM2 handle the zones of West Java to except Bogor, Depok and Bekasi. / Investor Daily, pg 24, Republika, pg 25

Telkom and Indosat Are Leaving Stock Market

State Firm Ministry Sofyan Djalil stated that PT Indosat Tbk now is reviewing its plan to quit from New York Stock Exchange. The reasons are stock market’s rule is complicated and cost is too expensive. The state firm minister asked PT Telkom to do similar review. / Tempo magazine, pg 126

Indosat potentially causing the country loss

The policy of Indosat on in-flight cellular service and prepaid internet grace period reduction are potentially causing some loss for the country over tax revenue. ‘The policy taken by Indosat sensitively causing some loss to the country,’ mentioned Policy and Consumer Protection Director of Information Society Development and Empowerment Institute (LPPMI), Kamilov Sagala, Monday (27/7). It was explained the policy to provide in-flight cellular service vulnerably causing loss to the country on the non clarity over frequency tax and roaming cartel potential. And related to the policy of grace period reduction of Indosat IM2 prepaid internet package cut from 180 days to 90 days, Kamilov believed on tax revenue loss potential. / Koran Jakarta, pg 16

In The Air We Could Call

Prohibiation to make a call during in flight has wait for to remove. Aeromobile is the first global company provides commercial in flight telecommunication service. In Indonesia, Aeromobile has set up alliances with Indosat. The Memorandum of Understanding (MoU) has been signed by President Director Indosat, Johnny Swandi Sjam with Director of Regulatory Affairs AeroMobile, Stein Gudbjorgsrud. For the service, Indosat sets call tariff Rp 55 thousand per minute, for SMS Rp 13 thousand per SMS, and for data is Rp 350/Kb. / Republika, pg 25

End of August, Indosat to roll Palapa D Satellite

PT Indosat will launch Palapa D Satellite to replace Palapa C Satellite which effectively to end soon. The plan will be for the satellite to launch at end of August. ‘Palapa C Satellite will be expired in two years, so that we will launch the replacement, Palapa D Satellite,’ mentioned Johnny Swandi Sjam on Monday (27/7). / Okezone.com, 27/7 – 17:05, / Seputar Indonesia, pg 18

Target 3 to be Forth Operator in Indonesia

Wednesday, July 15, 2009

3 GSM network in last two years has reached 21 provinces in Indonesia from Java, Bali, Lombok, Sumatra, Bangka Belitung, Kalimantan and Sulawesi. Up to now the consolidation of investment in Indonesia reached USD1 billion. "3 will continue to develop the network and provide the best quality with cheap prices that reached by all the community," said President Director Manjott Mann in its information authorized in Balikpapan, on Tuesday (14/7/2009). / Okezone, 14/7 – 17:08

iPhone 3G is smarter with OS 3.0

In line with newest iPhone software OS 3.0, Telkomsel provides iPhone 3G installment without any down payment. The newest software enable Telkomsel iPhone 3G users to enjoy some interesting features like Cut-Copy-Paste, Landscape Keybord, Message, Spotlight Search, e-mal and Voice Memos. / SWA, pg 24

BlackBerry Manufacturer and the Ambassador of Canada Approach the Government

Research in Motion (RIM) is lobbying the government to request regulatory relief since its certification import was frozen. RIM and the Ambassador of Canada met the Director General of Post and Telecommunication Basuki Yusuf Iskandar in Jakarta. This meeting was following up a letter from RIM that was sent by email on Saturday, 11 July 2009. The intention of the letter is to emphasize RIM commitment to build after sales services centre in Indonesia. RIM plans to open its after sales services centre on 26 August 2009. However, technically this after sales services can be operated on August 21. / Detik.com, 14/7 - 19:14, Detik.com, 14/7 - 19:43

Competition to Gain Internet Customers among ISP Operator Tight

Yong Rahwana, a businessman of Internet Service Provider (ISP), said that it was getting difficult to run the business. According to Ayang, ISP business in regional level had not yet able to compete with Telkom's product, namely Telkom Speedy. Despite of several lacks, he stated, Speedy had been the most used product by consumers in regional level. Telkom, Ayong said, had gained initial advantage of having already established infrastructure network. Therefore, the state owned company was able to lower their ISP tariff. / Jurnal Nasional, pg 21

Indosat M2 Build Rp 1.6 Billion Service Center

Indosat Mega Media (IM2), the subsidiary company of Indosat, would build 32 IM2 Broadband Services (IBS) offices in all regions in Indonesia by the end of 2009. The rumor mentioned that the investment value of the service center was 1.6 billion rupiah. "IBS is IM2 office that serves as distribution center, product (both pre and post paid ones) sales center, as well as help for modem and connection setting. IBS would be managed by IM2 business partners. / Okezone, 14/7 –16:41, Seputar Indonesia, pg 15, Suara Karya, pg 10, Bisnis Indonesia, pg I7

Indosat network stable on holiday season (11/7)

Monday, July 13, 2009

In the peak of holiday break, telecommunication traffic increase significantly. Being anticipated by Indosat, as umbrella operator of Matrix, IM3 dan StarOne. Adita Irawati, Indosat Public Relations Division Head mentioned, so far the network performance especially in the middle of school break, June till beginning of July in good condition. Voice traffic showed increases since June 7th 2009, whereas the top happened on June 21 2009. Traffic increase for 17.8% compare to regular day in the beginning of May 2009. On SMS, the increase started to show on June 6th 2009 with the peak of traffic on June 20th 2009 for 14,3% compare to regular day on the beginning of May 2009 with total SMS voluje on the day of 245.8 million SMS. / Neraca, pg 7

Communication Traffic Soared on Presidential Election (13/7)

During Presidential Election 2009, PT Telkomsel recorded SMS increased up to 17%, while PT Excelcomindo Pratama (EP) booked voice rose by 7.1%. Highest record reached by Indosat with the increase of voice 33.46%, SMS 10.32% and data 13.53%. Data information collected from Manager Corporate Communication Tekomsel Suryo Hadiyanto, Division Head Public Relations Indosat Adita Irawati and Manager Corporate Communication PT Excelcomindo Pratama Febriati Nadira in Jakarta, week ago / Investor Daily, pg 24

Tom Alamas Dinharsa: Smart Telecom Head of Business Development - Channels Important in Working in Marketing Business (13/7)

For Toma Alamas, Information and Technology (IT) was not a new field to work on. When working in Mobile-8 Telecom, Tom was a Chief Marketing Officer. He did not work long, though. Since 2005, the 42 year old guy joined Smart Telecom. In Smart, Tom had filled three different positions. Fisrt, as device, second, Marketing Communication and now Head of Business Development who dealt with new product profile. / Rakyat Merdeka, pg 13

The Diminishing Tariff War Advantage XL - Bank Syndication Credit of 1.5 Trillion Rupiah Settled This Month (13/7)

Financial crisis had caused cellular tariff war to diminish this year. Excelcomindo Pratama opted to strengthen the service to customers and reduce marketing cost this year. Excelcomindo Senior Vice President Corporate Finance Johnson Chan stated that the company still attempt to expand by broadening network and improving this year performance in selective way. The company, he continued, had gained Bank Negara loan commitment as much as 1.5 trillion rupiah (US$ 150 million). / Bisnis Indonesia, pg F3

Full support from operators (13/7)

Operators lend full support to the demand from the government that the Research In Motion (RIM) establish its after sales service in Indonesia. The Managing Director of Telkomsel Sarwoto Atmosutarno said the company supports the law enactment from the government. He is concerned, however, that the act should not put a halt to the BlackBerry service to the customers. The General Manager of Corporate Communications of PT Excelcomindo Myra Junor added that the demand from the government that RIM establishes its service center in Indonesia is a warranted demand, considering the staggering number of Blackberry users in Indonesia. / Republika, pg 25

Telkom Collected 5 Awards (13/7)

PT Telkom collected five awards from Hong Kong based Magazine, Finance Asia. The five awards was handed in Jakarta on June 29, 2009 are Best Managed Company, Best Corporate Governance, Best Investor Relations, Best Corporate Social Responsibility, and Most Committed to a Strong Dividend Policy. Eddy Kurnia. Vice President Public and Marketing Communication Telkom, said proud to achieve the awards from international reputable institution like Finance Asia. / Republika, pg 23

Mastel suggest IPTV postponement, Telkom may keep the broadcast

Thursday, July 09, 2009

Indonesia Telematics Society (Mastel) recommends regulation and service provision postponement over Internet Protocol Television (IPTV) until Convergence Law formulated. (Bisnis Indonesia, pg I7, Koran Jakarta, pg 16)

COMNETS won the tender for the countryside telephone network project (USO)

At last, PT Indonesia Comnets Plus won the tender for the development of the countryside telephone network through the Universal Service Obligation (USO) project. Comnets Plus was awarded the rights to the packages 1 and 2 of the USO, covering the eastern part of Indonesia. (Kontan, pg 14, Bisnis Indonesia, pg I6, Seputar Indonesia, pg 14)

CONSORTIUM REQUEST POSTPONEMENT - Government ask Palapa Ring build on August

Palapa Ring consortium members submitted the letter to Depkominfo request for more time up to November this year to start the mega project. Meanwhile, government sticks to the original plan of starting the fiber optic network development in East Indonesia started by August 2009. (Investor Daily, pg 24)

TELECOMMUNICATION - Mobile-8 supports the LP3ES Quick Count

After its success in supporting the quick count for the parliamentary election of April 2009, PT Mobile-8 Telecom Tbk (Mobile-8) now supports the quick count for the presidential election of July 2009, conducted by RCTI and the Institute for the Research, Education and Dissemination of Social and Economic Issues (LP3ES). (Investor Daily, pg 24)

BTEL focuses on the organic growth

PT Bakrie Telecom (BTEL) puts its focus on the service development in all its areas after the government issued its edict on telecomm industry consolidation. (Neraca, pg 5)

XL customer in the east almost 7 million

PT Exelcomindo Pratama Tbk (XL) eastern region holds over 7 million customers as per 1st quarter 2009. The low price strategy applied for all customers keeps being the XL customer increase leverage. (Investor Daily, pg 24)

Telkomsel is waiting for additional 3G

Telkomsel yet received additional 3G frequency from Directorate General Post and Telecommunication, even Finance Dept has agreed price of Rp 160 billion for 5 MHz. (Bisnis Indonesia, pg I8)

Telkom Ready to Support presidential election

To make sure everything is okay for the presidential election on Wednesday (7/8), PT Telekomunikasi Indonesia Tbk (Telkom) employed a full alert mode. (Investor Daily, pg 24, Suara Karya, pg 7)

Calculate the telecommunication sector opportunity

Thursday, July 02, 2009

Telecommunication industry has become one of dynamic sector in Indonesia. Cellular market in Indonesia potentially scores high. However, with cellular user grows high enough, cellular penetration level in Indonesia pretty low for only 53% a the end of 2008. (Investor Daily, pg 4)

RIM must open its service centre by August 2009 at the very least

Department of Trade (Depdag) requested all cellular phone producers, including the producer of BlackBerry Research in Motion (RIM), to abide by the Decree of the Minister of Trade no. 19/2009 on the Registration of the Manual and the After Sales Guarantee card in Bahasa Indonesia. (Kontan, pg 14)

Awaiting for BlackBerry Promise

Both imported and domestic electronic and telecommunication products must have at least six service centers.

"It does not make sense that Indonesian consumers buy products in Indonesia but must go to Singapore when their BlackBerry have technical problems to fix them," Depkominfo Head of Information Center and Public Relation Gatot S. Dewa Broto in Jakarta last week. (Media Indonesia, pg 14)

Manufacture and trading industry integrated solution from Lintasarta

The increasing competition of business climate, dynamic market, and Supply Chain Management (SCM) development, as well as better Customer Relationship Management (CRM) for customer, requires solution enable the integration and at the same time efficient for the whole activities within the industrial chain. (Okezone.com, Detik.com)

“3" Covers Balikpapan

After entering Samarinda and Banjarmasin on early May, PT Hutchison CP Telecom (HCPT) Indonesia as “3” operator expanded its network to Balikpapan. This expansion is expected will add “3” users to reach 5.3 million. (Sinar Harapan, pg 16)

AXIS offers a special international call tariff

PT Natrindo Telephone Seluler offers a promo tariff for international calls to select countries. Natrindo, the owner of the brand AXIS, cuts its international call tariff to holiday destination countries such as Thailand, Singapore, China, Hong Kong and the United States. (Investor Daily, pg 24)

On the restructuring of the Mobile-8 obligation: FREN offers three options to pay its sinking fund

Management PT Mobile-8 Telecom Tbk (FREN) must soon pay its sinking fund of Rp16 billion after the Obligation Holders General Assembly (RUPO) of Monday (6/29). (Kontan, pg 4)

Approaching one million subscribers, Esia launched a Bandung special starter pack edition

Approaching one million subscribers, Esia launched a Bandung special starter pack edition. The edition is issued in accordance to the Bandung Green Movement (GBH). (Detik.com)

XL Provides Cheap Internet Tariff on Holiday

PT Excelcomindo Pratama (XL) presents cheap internet tariff namely "XL Liburan Rame". The 30 days promotion packages have various speeds from 40 MB up to 750 MB. GM Internet and Data Services XL, Ari Tjahjanto said the package is very practical and useful with four monthly packages. (Sinar Harapan, pg 16, Warta Kota, pg 24)

Telkom Target to Boost Speedy Customer through Pay TV Service

Telkom bundled pay TV service owned by its subsidiary company, Telkomvision, with Speedy internet access service. Telkom expected the bundling package would boost the growth of the two business lines. (Detik.com)

Axis Confidently Market Unlock BlackBerry

Wednesday, July 01, 2009

Axis would market unlocked BlackBerry Javelin and Bold started at the end of this July. "Why should limit customer. We are not afraid to market unlock BlackBerry as we believe in our service," stated Axis Chief Marketing Officer Johan Buse in Menara Dea, Jakarta, Tuesday (30/6/2009). As new operator, Axis was very brave in offering the tariff of BlackBerry Internet Service (BIS) as much as 3900 rupiah per day, 25000 rupiah per week and 100.000 per month. The tariff was much cheaper compared to that offered by other three BlackBerry providers, namely Telkomsel, Indosat and Excelcomindo Pratama., / Detik.com, 30/06 - 18:23, Okezone.co, 30/6 - 18:28, Kontan, pg 22

Offering Netbook, Modem and Internet Access - Operator Bundle Netbook with Modem

Two code multiple division access (CDMA) based telecommunication operators, namely Smart Telecom and Mobile-8 Telecom sold modem by bundling it with netbook. Smart Telecom offered Netbook Smart Telecom (Olive X107) that was not merely able to access internet but also to call and send SMS. Mobile-8 also provided Advan netbook Vanbook A1-N70T series and a modem. Mobile-8 aimed this product for the beginners of internet users. GSM operators, such as Natrindo Telepon Seluler (Axis) and Excelcomindo Pratama (XL) also followed this action. / Kontan, pg 22

Mobile - 8 Pay Sinking Funds in August

Mobile-8 Telecom Corporate Secretary Chris Taufik stated that the company would pay 16 billion rupiah sinking funds in August and September. "Where we get the fund is not important, but we attempt to pay in due time," said Chris in Jakarta yesterday. The company's internal cash flow in the first quarter of 2009 was 12.3 billion rupiah. The Obligation Holder General Meeting held last Monday had decided upon the company to prepare the fund to pay rupiah obligation interest. The obligation in question, which was released in March 2007, had been the subject of problem as Mobile - 8, did not pay the interest. Instead, the company wanted to restructure it. / Koran Tempo, pg A15

Bakrie to raise stake in units

The widely diversified group PT Bakrie and Brothers, is setting its sights on increasing its stake in several key subsidiaries, including PT Bumi Resources, Asias largest thermal coal exporter. Bakrie is planning to add stake ownership in Bumi and PT Bakrieland Development by the end of this year through a combination of its partners, and by buying a stake owned by public investors, Dileep Srivastava, the director for investor relations at Bakrie, said Tuesday. Srivastava said that Bakrie has the option to buy back 7.78 percent of Bakrieland shares from lenders and has decided to exercise the option this year. Currently, it owns a 48 percent stake in PT Bakrie Telecom and 42 percent in PT Bakrie Sumatra Plantation. / The Jakarta Post, pg 14, Investor Daily, pg 9, Kontan, pg 4, Media Indonesia, pg 16, Republika, pg 5

XL Launched 3 Internet Packages

Excelcomindo Pratama (EP) launched a promotion packet of Instant Internet access with cheap tariff and qualified service as part of XL Liburan Rame program. The program in question would ease the customers to gain internet access. Monthly packet provided 40 MB capacity with the tariff of 20.000, 130 MB 50.000, 320 MB 100.000 and 750 MB 200.000. The promo would last until 31 August 2009. EP General Manager Internet dan Data Services, Ari Tjahjanto stated the new packet would be very practical and useful for customers that needed to access data during the holiday season. / Bisnis Indonesia, pg I7, Investor Daily, pg 24, Kontan, pg 15, Jurnal Nasional, pg 4

Telkomsel Collected the Sixth Best Operator Seluler Award

PT Telkomsel Tbk collected two prestigious awards in Seluler Award 2009. The operator of Simpati, As, and Halo gained Best of The Best Operator and Best GSM operator. The awards is carried out by MARS survey institution with Seluler Magazine. / Jurnal Nasional, pg 22, Suara Karya, pg 6

Telkom boosts its content providing business

PT TELKOM Tbk steps on the pedal to aggressively play in the content providing business by furnishing Rp500 million for novice developers and introducing the profit sharing scheme through the program Indigo Fellowship. The fund would be allocated among around 100 young entrepreneurs in the digital content industry, both the internet and the cellular based. “The owner of Facebook, for instance, has only little assets but the value of its company is many folds. Telecomm operators such as Telkom has huge assets with just a maximum value double of its assets,” thus said the Director of Enterprise Wholesale Telkom Arief Yahya recently. / Bisnis Indonesia, pg I7

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