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

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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

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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

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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

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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

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Mastel suggest IPTV postponement, Telkom may keep the broadcast

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)

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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)

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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)

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Calculate the telecommunication sector opportunity

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)

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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)

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Behind BlackBerry Restriction Import

RIM certification has been declined until the Canada’s company set up presents service centre in Indonesia. Group Head Marketing and Brand Indosat, Teguh Prasetya regretted the government’s decision. He expected a while time to prepare before the policy executed to maximize the stocks. Telematics practitioner, Faizal Adiputra viewed the decision made is not the best choice for both parties. According Faizal, main problems is RIM appointed partners as pick up point service and it is assumed as part of after sales service. In the other hand, government refers to regulation that after sales service should be set up in Indonesia. / Koran Jakarta, pg 16

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BlackBerry operator lost US$ 1.8 million - Depkominfo threatened to halt BlackBerry totally

Telecommunication operator partner of Research in Motion (RIM/BlackBerry producer) potentially lost over US$ 1.8 million per month, if government keep barred the incoming newest BlackBerry. PT Indosat Tbk Brand Marketing Group Head, Teguh Prasetya described operator partner of RIM at average able to sell 3,000 unit BlackBerry per month. Average price per unit of US $ 600 so that the operator potentially lost estimated US $ 1.8 million per month. / Bisnis Indonesia, pg I8

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BWA Tender Participants Decrease 68%

The observer of telecommunication business from University of Indonesia, Gunawan Wibisono, stated that the withdrawal of many Broadband Wireless Access (BWA) tender participants was partly due to the pessimism of small operator to compete with big operators with bigger capital. The other cause, he said, was that participant operators must face tight competition when operating in big cities and provide bigger investment when operating in sub-urban areas due to the lack of sufficient infrastructure in the area. Indosat Mega Media and Indosat were two among 23 companies submitting bidding documents in the tender. / Sinar Harapan, pg 15

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Department of Finance Agree Upon 3G Frequency Price 160 M

The Department of Finance (Depkeu) agreed upon the price of 3G license as regulated in Menkominfo Decree No. 7/2D06 on Regulation on the Usage of 2.1 GHz Radio Frequency. According to Heru Sutadi (the member of BRTI), Depkeu's decision had strengthened the position of Depkominfo to set the license price according to the lowest price decided on the first tender, which was 160 billion rupiah. All 3G license holders such as Telkomsel, Excelcomindo Pratama, Indosat, Hutchinson CP and Natrindo Telepon Seluler had proposed for bidding price. Only Telkomsel mentioned the price of 160 billion, while other operators such as Excelcomindo Pratama 40 billion and Indosat 30 billion. Excelcomindo Pratama (EP) Director Joy Wahyudi confirmed that the XL operator would delay the plan to add its 3G frequency. / Investor Daliy, pg 24

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USO Tender winner would be announced next month

The government will soon announce the winner for the tender on the project to build telephone network in the countryside, packages I and II, in July 2009. The winner for the two packages will be decided based on the technical administration and price offer criteria. The packages I and II are the remaining packages, out of the total of seven, of countryside telephone network building funded by the government this year. Five other packages have been awarded to Telkomsel. The remaining two are contested between Indonesia Comnets Plus (Icon+) and PT Indonusa System Integrator Prima. / Koran Jakarta, pg 15

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BWA tender to open on July 14: the government is optimist that all zones will attract bidders

Department of Communication and Information (Depkominfo) is optimistic that the operators of high-speed wireless internet (BWA) will be attracted to all zones on the offer. The price of Rp52.35 billion of reserved price for each bloc in the 15 zones nationwide is quite affordable to all would be bidders. Expert Staff of the Minister of Communication and Information Suhono Harso Supangkat said in Jakarta yesterday. Vice President of Public Marketing Communication Telkom Eddy Kurnia said Telkom considers lucrative zones would be decided based on the needs and the existing coverage network. Meanwhile the Director of Corporate Service Bakrie Telecom (BTel) Rakhmat Djunaidi said that BTEL sets its eyes to one slot only./ Investor Daily, pg 24

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PALAPA Ring is to be built in 2010: The Parliament says Depkominfo must bear the responsibility for the delay

The government hopes that the development of the Palapa Ring would commence in August 2009. However, the consortium for the laying of the fiber optic cable network in the Eastern Indonesia is incapable of fulfilling that hope considering the multitude of besieging problems. The expert consultant for the Minister of Communication and Information Moedjiono said that the available fund of US$150 million is enough for only 75% of the initial target of laying an 11,000 kilometers of network of fiber optic cable connecting Sulawesi, Maluku, Papua, and Nusa Tenggara. “Although the project would only be commencing next year, it will be serviceable by 2011,” he said. Meanwhile, the member of the Commission I of the Parliament Dedy Djamaluddin Malik, from the Partai Amanah Nasional, is of the opinion that the delay of the Palapa Ring project is attributable to the Department of Communication and Information (Depkominfo). And for that, Depkominfo must answer to the Parliament. / Investor Daily, pg 24

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Telecommunication Growth Less than 10% - Operator Ask Regulatory Cost Reduction

The Association of Indonesian Cellular Telecommunication (ATSI) predicted that the growth of Indonesian telecommunication industry this year was less than 10%, far lower than that of last year and of 2007, which was 20%. (Bisnis Indonesia, pg I8)

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BRTI to announce on the performance of operators in July

Next month, the Indonesian Telecommunication Regulatory Body (BRTI) will announce its evaluation to the quality of services of the telecom operators for the period of 2008-2009. The operators are currently racing to improve their networks to satisfy their customers. To avoid the degradation of the quality of service, the Vice President Public and Marketing Communication Telkom Eddy Kurnia said that Telkom Group retains its capital expenditures in 2009, amounted to US$2.1 billion or Rp22 trillion. Meanwhile, the General Manager Network Quality PT Excelcomindo Pratama Tbk (EP) Yudianto said that XL will stay responsive to the complaints of its customers. / Investor daily, pg 24

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A Certificate to Be Suspended, Operators Demand BlackBerry Open Customer Service

Directory General of Post and Telecommunication would suspend A certificate for BlackBerry importers and Research In Motion (RIM) if both parties did not establish customer service for the product in Indonesia soon, as stated by Azhar Hasyim, Director of Standardization Bureau, General Directory of Post and Telecommunication, Department of Communication and Information. Azhar did not mention in detail the number of companies importing BlackBerry out of three operators (Telkomsel, Indosat and Excelcomindo Pratama). Indosat Marketing Director Guntur S. Siboro stated that RIM's partner operators did not consider the fact that other companies also imported BlackBerry disturbing. "The problem is many handsets with PIN cloning now are vastly distributed. RIM will block the PIN in once it is identified. Unfortunately, consumers bought (the handsets) with normal price," he said. / Bisnis Indonesia, pg I8, Indo Pos, pg 24

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