IndosatM2 eyes 500,000 customers

IM2 has launched a prepaid 3.5G broadband Internet service that uses HSDPA (High Speed Downlink Packet Access) wireless technology. "The prepaid service is aimed at those who want to control their Internet usage, especially students and young professionals, by using refillable accounts," IM2 general manager of business planning Hermanudin said at the product launching Wednesday. Reinforced by a new wireless technology, Internet and multimedia services provider PT Indosat Mega Media (IM2) plans to increase its customers fivefold to 500,000 by the end of this first semester. The innovation enables users to enjoy internet access but control the payment. (Rakyat Merdeka, pg 13)

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Indosat Provides DRC Services

PT Indosat Tbk provides solution to customers to protect their data specially in disaster by servicescalled Disaster Recovery Center (DRC). Thorugh this service, customer can anticipate losing and destroying datas due to force majeure like disaster, riot, and others. Indosat DRC builds based on international standard with location at Bumi Jatiluhur Station as data centre. (Investor Daily, pg 24; Suara Karya, pg 6)

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The launching of IM2 Broadband

Board of management PT Indosat Mega Media (lndosatM2) (from left to right) Director Trade Herry Swandito, Director Operational Dede Rusnandar, Director Planning M Amin, President Director Indar Atmanto, and General Manager Business Development Hermanudin tried internet access by apply Prepaid IM2 Broadband. Prepaid IM2 Broadband is internet services with prepaid method. Through this service, users can enjoy access internet with high speed to 3.6 Mbps. (Media Indonesia, pg 15)

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Wireless phone operators will fall down

Frontier consulting predicted many wireless telecommunication companies will fall down within five years due to the prolonging tough and rough tariff competition which hamper the profit.
Handi Irawan D., Chairman Frontier Consulting Group, said now the telecommunication tariff offered by some wireless company in Indonesia has been cut down by 50-80 percent given that the predominant market is low end.
“Telkomsel, Indosat and Excelcomindo seem to be more secure given that they have owned more than 5 percent of the markets. As to me, the critical moment is over,” said Handi. (Bisnis Indonesia, pg T8)

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Tariff war boosts up voice call traffic

Low-priced tariff program leading to tariff war among cellular operators has increased the voice call traffic by 100 percent and additional new customers in Bali. General Manager Sales & Customer Service of Telkomsel Bali Nusra Hastining B. Astuti, Head of Denpasar Branch of PT Indosat M Arif Junaidi, and Regional Sales Operation Manager of XL BaliNTT Ivan Priyahutama, conceded the issue here when contacted separately.
As to those three managers in Bali here, some programs offered by cellular operators have had positive impact given that customers will have many options.(Bisnis Indonesia, pg T8)

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Indosat goes all-out to expand network, boost competitive edge

The country's second largest telecom company, PT Indosat, is to issue bonds worth a total of Rp 1.5 trillion (around US$163 million) to support its expansion drive.
The company is also seeking another $400 million in external funding in the form of bank loans or global bonds. The company's expansion plan this year is expected td cost up to $1.2 billion.
President director Johnny Swandi Sjam said Monday Rp 1.5 trillion in bonds, currently entering the bookbuilding process, would be offered in a conventional bond amounting to Rp 1 trillion and in a shariabased bond of Rp 500 billion. (Jakarta Post, pg 13; Koran Tempo, pg B4; Seputar Indonesia, pg 17; Rakyat Merdeka, pg 14; Berita Kota, pg 4; IndoPos, pg 19; Republika, pg 13)

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Another 6 million Indosat subscribers in 2008

Indosat expected to maintain the 28 percent the market share in cellular phone industry by end of this year, or at least by the same as that of last year. Last year, Indosat reported 24.5 million subscribers and targets to reach 30.5 million or 25 percent increase. “We off course expect that our market share will increase by more than 28 percent by end of this year. At least we can remain at 28 percent. I think the other operators have the similar expectation so that we will face tight market competition,” said Johny Swandi Sjam, Indosat president director, following the public expose of Indosat bonds issuance in Jakarta Monday (25/2). (Investor Daily, pg 24)

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The House wants the regulator to control the license of 2 G and 3 G

A MP wants the Indonesian telecommunication regulatory body (BRTI) to bring the implementation of license of 2 G and 3 G under control. At the same time the BRTI is actually analyzing the license of 3 G and will immediately invite the operator. "We assume there are license of 2 G and 3 G that haven't been used, so I want the BRTI to bring them under control," said Deddy Djamaluddin, MP of commission one Cellular Operators possessed the license of 2G are PT Mobile-8 Telecom, PT Smart Telecom, PT Bakrie Telecom Tbk, and PT Sampoerna Telekomunikasi Indonesia. While the 3 G license holders are PT Telkomsel, PT Indosat Tbk, PT Excelcomindo Pratama Tbk, PT Natrindo Telepon
Seluler, and PT Hutchison CP Telecommunication. (Investor daily, pg 24; Berita Kota, pg 10)

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Bandwidth demand in Indonesia remains high despite the high price

Telecommunication is deemed lucrative business. Not only cellular telecommunication industry but also supporting infrastructure such as backbone network are also budget consuming for investors. There are three companies completing the optical networks connecting Jakarta-Batam-Singapore, namely PT Napindo Lintas Nusa, Matrix Networks Pte. Ltd. Dan PT Mora Telematika Indonesia. Indosat and Telkom have formerly built such network to Singapore. XL also has optical network connecting Batam and Malaysia. Indosat Director Fadzri Santosa said the network operators now prefer Jakarta-Batam-Singapore networks. Singapore is not only close but also the joint optical hubs connecting internet access to all countries. (Trust Magazine, pg 26, 27)

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Tower is the main core for local operator

The government plans to make new tower development as the major industry domestically when the regulation of the Minister for communication and information on the Guideline of Telecommunication Tower Use will be enacted, then the tower development will be automatically delegated to local human resources. Heru Sutadi the member of the Indonesia Telecommunication Regulation Body (BRTI) said when the Minister Regulation here will have automatic enactment then the development of new tower will involvle domestic human resources. “The tower development industry will become domestic core industry,” he said. Separately, XL president director Hasnul Suhaimi said to study further the draft of the Minister Regulation here. Marketing Director of PT Indosat Guntur S. Siboro said the company has yet to establish special unit for tower. (Bisnis Indonesia, pg T7)

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Indosat target 1.4 million IM3 new customers

Indosat targeted 1.4 million IM3 new customers trough the latest IM3 promotion of Rp0.01 per second. The figure is expected to be attained within two months until April 30, 2008.
Group Head Brand Marketing of Indosat, Teguh Prasetya, said it on the release of IM3 Rp0.01 per second tariff in Jakarta yesterday. IM3 has so far been known for its service focusing on SMS, Mentari on voice service. With the release here, it will change the position. Director for Jabotabek & Corporate Sales PT Indosat, Fadzri Sentosa, said, IM3 still focuses on SMS services and Rp0.01 per second tariff will serve as the complementary to the service here.” (Republika, pg 15; Investor Daily, pg 24; Jurnal Nasional, pg 4; Warta Kota, pg 4)

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Inter Operator Tariff still Expensive

War of cellular phone tariffs keeps going on. PT Telkomsel, PT Indosat, and PT Excelcomindo Pratama, race in offering voice tariff under Rp 1 per second. Member of Indonesia Regulation of Telecommunication Board (BRTI), Heru Sutadi warns that those tariff is just promotion, effective temporary only, not fixed tariff. "For fix tariff, operator should report it to BRTI. But until now, there is no one operator has reported," said Heru Sutadi. (Investor Daily, pg 24)

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Together Taking Part In The Dispute of Temasek Vs KPPU

Suddenly there appeared four parties who decided to take part in the dispute between Temasek and KPPU. The four parties requesting for an intervention to the dispute are Venny Zano, a shareholder of PT Indosat Tbk, PT Telekomunikasi Indonesia (Telkom), a member of Council of Regional Administration (DPD) Marwan Batubara who is also a shareholder of Indosat.
The last one is Muhammad Ridwan, who represents telecommunication consumers. Venny has considered that Temasek is a strategic investor for Indosat. "Indosat will lose a competitive power, especially from its main competitor, namely Telkomsel if Temasek withdraws itself," she said. Meanwhile Marwan agreed to the decision by KPPU which had ordered Temasek to release its shares in one of cellular operators. On the other hand Ridwan had a different opinion. Claiming that he represented consumers of telecommunication services of cellular operators Simpati, Halo, IMS, Mentari, Matrix, and As, he asked the court to increase the amount of fine. KPPU had fined Temasek Cs for only Rp 250 billion, but Ridwan has claimed for a compensation of Rp 30 trillion. (Koran Kontan, pg 17)

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KPPU is out of control:Todung

The lawyer of Temasek holdings Limited questioned the Business Competition Supervisory Commission (KPPU) which moves uncontrollably. Now, KPPU used the evidences and reports of FSP BUMN Bersatu to sue Temasek Holdings Limited to the District Court which actually had revoked the legal suit. Todung Mulya Lubis, lawyer of Temasek, said it was unfair for KPPU to have authority for additional probes. In the former case, the investigated object was about the KPPU decision. Temasek Holdings manager director Myrna Thomas also seeks advise from the Supreme Court on some legal cases in the appeal to higher court. The legal advise is the request for Temasek international experts to be present and provide evidences. “We only need facts undisclosed at court so that Temasek Holding will not simply become the target,” he said. (Suara Pembaruan, pg 10)

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Open telecommunication network in 34 cities, StarOne offers cheap telephone & Internet

After successfully organizing "Ngobrol Irit" (Ngorbit) program, PT Indosat Tbk. again launched Fixed Wireless Access (FWA) service with brand StarOne (prepaid and postpaid) in Dumai and Duri areas. With the presence in the areas, StarOne has served residents in 34 cities in Indonesia. (Republika, pg 6; Rakyat Merdeka, pg 9)

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3G, More Expanding More Popular

The more reasonable prices and the larger coverage of cellphones have encouraged the increase of 3G customers. Indosat has also made an expansion. This year Indosat is planning to enlarge the coverage of 3,5 G (Indosat's 3G is already HSDPA) on a national scale. After its presence in 17 cities, Indosat will expand its network up to 42 cities until end of 2008. Indosat will also strengthen its network in Greater Jakarta areas by adding about 500 node B HSDPA (BTS 3G). (Republika, pg 26)

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Parliament called operators to comply with regulation

The House of Representatives’ information commission member, Djoko Susilo, called for telecommunication operators to implement the cellular phone interconnection tariff formula set by the government two days ago. He also urged the government, in this case the Minister for Communication and Information Muhammad Nuh, to sternly monitor the implementation of the government policy here. (Koran Tempo, pg B8)

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Indonesian Consumer Foundation (YLKI): Cellular Tariff Very Expensive

The authority's Plan to decrease cellular interconnection tariff, effective on April 1 2008, was not meaning that consumer will get cheaper price. Because tariff of cellular phone in Indonesia is much more expensive than those of Asian countries. Head of YLKI Daryatmo said that the authority actually should pressure the cellular operators to cut off the price. (Berita Kota, pg 4)

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No sanction if operators do not decrease tariff

Do not expect operators decrease its tariff after the decreasing of interconnection tariff. There is no article that obliges operators use the interconnection tariff as a reference for retail tariff decrease. Directorate General Post and Telecommunication Gatot S Dewa Broto admitted there is no sanction if operators do not decrease the retail tariff. (Kontan, pg 1)

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Cutting down cellular tariff

Cellular phone users will enjoy 20-40 percent cut down tariff. We appreciate the Minister for Communication and Information Muhammad Nuh for initiating the policy. Besides, the tariff cut down will also be implemented for fixed line telephone by 5-20 percent. The tariff cut down through retail will take place following the government imposition of interconnection tariff for mobile networks or interconnection phone tariff. (Investor Daily, pg 4)

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Technology Runs Fast, Users Walk In Place. Government Claims For 3G Cellular Operators' Commitment

The presence of the third generation (3G) communication technology in this country has not been for very long. In the beginning of this February the Telecommunication Regulating Board (BRTI) is going to record the extend of development of 3 G at each operator. Currently there are five operators in possession of 3G licenses, namely: Telkomsel, Indosat, Excelcomindo, Hutchinson CP Telecommunication Indonesia, and Natrindo Telepon Seluler. "We want to see the commitment they have given," said Kamilov Sagala, a member of BRTI Commission. This means that government wants to claim for the commitment given by the operators when they received the 3G licenses. The commitment ranges from their partial payment of the up front fee for the license, the extend of coverage of developing network Of service, number of customers, development of human resources (SDM), as well as use of local components. "They should use a maximum of about 35% local components," said Kamilov. This is for building 3G BTS, which is commonly called node B. Indosat that puts priority on the latest 3G technology through 3,5 G or high speed downlink packet access (HSDPA) has claimed they have 600,000 customers. Meanwhile Excelcomindo Pratama has spent a total investment of US$ 650 million for the development of 3G. On the other hand Telkomsel has openly disclosed the number of their 3G customers. "It is about 1.5 million customers," said President Director of Telkomsel, Kiskenda Suriahardja.

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