Tag Archive | "Telkom"

It’s Time For Telkom To Fight Back

I was in the town of Timika in Papua when I met high rank officials from Telkomsel, Indonesia’s largest mobile operator, sometimes in 2007. I gave a short speech before them and other guests, and shared my stories when I was traveling overseas. I told them that mobile operators from our neighboring countries had started venturing out overseas and acquiring some mobile operators in countries like Cambodia, Srilanka, India, Bangladesh, and Philippines, while there’s not even one Indonesian mobile operator that did the same.

I did not have a good response from them but merely an old classic answer, “But we are focusing on domestic market”.

One should understand that Indonesia’s many mobile operators are well-experienced and possessing world-class infrastructures and latest technology with good services. You may go to many countries outside Indonesia and you’ll find it difficult even to get a new number on top of your credit. Indonesia mobile operators are so much ready to expand its operation beyond borders.

I am overwhelmed that finally my wish comes true. PT Telekomunikasi Indonesia, Indonesia’s biggest phone firm, the mother company of Telkomsel, has said that it is looking at acquisitions in Southeast Asia as it sees its domestic market maturing.

Indonesia, Southeast Asia’s biggest economy, has become one of the world’s most crowded telecommunications markets, with 11 operators fighting for custom in a population of 237 million.

Telkom, which rarely comments on regional expansion, tried last year to acquire a stake in Iran Telecom but failed as it lacked backing from Indonesia’s government.

It is but said earlier that it sees capital expenditure in 2011 at about US$2 billion.

Telkom needs to invest heavily in telecoms infrastructure such as towers, and is also shifting its focus to data services to earn higher profits as Indonesian subscriber growth slows.

Indonesians has seen its domestic telecom operators being acquired or established by foreign companies, and has been reluctant to go for expansion. Now, it is the time to fight back.

(Akhyari Hananto)

Source: The Malaysian Insider


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The Only Way of Indonesia is Up!

While the telecom services “growth market” focus has been on the BRIC (Brazil, Russia, India, and China) nations in recent years, a new Pyramid Research report suggests the industry should be paying closer attention to Indonesia too.

The report, “Indonesia: Rising Competition to Spur Telecom Revenue Growth,” reveals that there’s a marked under-penetration of most telecom services in this vast, fragmented country of more than 240 million people.

But rapid service uptake, driven by increased competition and rising disposable income, is expected, with the Pyramid team predicting that, while China and India are still set for significant expansion, Indonesia will become the fastest-growing telecom market in Asia/Pacific during the 2009-2014 period, with overall revenues from communications services growing by a staggering 80 percent.

In the mobile sector, subscription penetration stood at 63.7 percent in 2009 — below the global average of 68 percent — and actual user penetration at 38.6 percent. There has already been some growth -– in 2006 subscription penetration was just 28 percent –- but the report’s authors believe there will be much more in the coming years, with penetration set to exceed 93 percent by the end of 2014. In revenue terms, the report predicts that this will translate to a compound annual growth rate (CAGR) of 11.4 percent for the mobile sector to 2014.

Broadband of any kind has yet to reach 1 percent of the population, but mobile broadband is on the march, claiming 2.4 million connections in 2009, compared with only 1.6 million on fixed broadband. This is partly explained by the archipelago nature of the country: The population is spread across more than 6,000 of Indonesia’s 17,000 islands, which makes wireless technology more suitable for broadband rollout. And in a country where only 5 percent of the population owns a PC, mobile phones look set to be the standard platform for Internet access.

PT Telekomunikasi Selular (Telkomsel) , the mobile arm of fixed incumbent PT Telekomunikasi Indonesia Tbk. (Telkom) , will probably be the main beneficiary of this growth, and will likely still dominate the market with a market share of more than 50 percent in 2014. (See Telkomsel Plans Capex Hike.)

But it’s not just a mobile story. The report predicts that fixed-line revenue growth will outstrip that of the mobile sector during the coming five years. Indeed, Pyramid projects that total fixed-line revenue will increase at a CAGR of 13.6 percent to the end of 2014. The main driver of this will be the continued popularity of limited mobility services — or fixed-wireless access (FWA) — throughout the archipelago. FWA already accounts for three quarters of all fixed connections in the country. (See Indonesian Operator Soars With FWA.)

The popularity of FWA, says the report, will mean that the fixed space will predominantly serve the need for voice services, while broadband data needs are met by 3G platforms. This, it adds, is “in stark contrast to other markets.” Perhaps surprisingly, WiMax looks set to remain a niche technology in Indonesia.

The simple fact is that while Indonesia is the fourth most populous country in the world, it ranks only seventh in Asia/Pacific in terms of telecom revenue. And in terms of telecom revenue as a percentage of GDP, Indonesia stands at 1.7 percent, compared with Vietnam on 5.3 percent and Thailand at 3.3 percent.

For Indonesia, the only way, it seems, is up.


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Telkom Indonesia And The Undersea Cables

PT Telkom Indonesia Int’l (TII) increases international bandwith by joining the sea cable development  connecting Indonesia, Singapore, Philippines, Hongkong, Japan, and then linked to the US and Latin America.

The cooperation agreement was agreed in Honolulu, United States. TII addition, some operators join the world in such SJC Reliance Globalcom (via FLAG Pacific Limited Bermuda), Globe Telecom (Philippines), Google SJC Bermuda Ltd., KDDI (Japan), Network i2i (India), Singapore Telecommunications Ltd. and Pacific Telemedia Inc., Ltd. (Hong Kong / Indonesia)

TII said that its participation in the Consortium SJC is a strategic step to strengthen the international infrastructure networks that already exist. In addition to business support Telkom Group, that an international infrastructure to meet increased demand, especially international bandwidth to support broadband applications such as internet, video, data and other multimedia services needed by the customer.

It is estimated that the growth of international bandwidth capacity needs Telkom Group at the end of 2014 to reach at least 10 times today. SJC is scheduled to operate at one quarter of 2012 that would provide additional international bandwidth capacity of 960 Gbps TII with excellent quality, the faster connection and a reliable system of diversity.

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Indonesia’s Huge Industry

Are you Indonesian? Do you have a mobile phone? Do you use it for SMS or calling? Well, as for myself, I prefer calling, short-time, than SMS. It saves my energy to type.

In 2008, despite the huge financial blow, Indonesian communication industry remained ”untouchable”. Indonesians spent nearly 30 billion minutes of talking on mobile phone, with total almost 25 billion calls.

Indonesia has 12 mobile operators: Bakrie Telecom, Batam Bintan Telekomunikasi, Indosat, Mobile 8, Axis, Pasifik Satelit Nusantara, Sampoerna Telekomunikasi Indonesia, Telkomsel, Telkom, XL, Hutchison CP Telecom Indonesia, and Smart.

This may be the reason why two mobile phone giants are building their plants in Indonesia soon.

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