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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