Friday, June 26, 2009

Indonesia Mobile Telecom Market update

I repost this writing from Mas Joko Sriyono as professional in Telco Industry, and now work for Qatar Telecom.

Indonesia Mobile Telecom Market update

Indonesia telecom market is still a very promising for local and foreign investor according to some analyst, while Indonesia has more than 220 millions population there are still of course room for grow and grab some market share. It is expected by the end of 2008, Indonesia become the third largest market in Asia Pacific and mobile penetration rate will go above 33%

Currently Indonesia has 10 Mobile operators and 4 Fixed wireless:

1. Telkomsel

The market leader, has more than 50% market share, using GSM/WCDMA, perceived as pioneer in coverage, market innovation, distribution channel, loyalty program, network and quality.

2. Indosat

The second position, but XL aggressively catching up this position,technology used GSM/WCDMA.
3. Excelcomindo/XL

XL is very aggressive in price and promotion, network quality and expansion, a very strong candidate to be the number 2. Technology GSM/WCDMA.

4. Mobile 8

The first operator launching video streaming on CDMA/EV-DO network, RBT, CDMA roaming, broadband. Extend its coverage nationwide.
5. Hutchison

Hutch leveraging its global brand and experienced plus attractive advertisement, come with innovative VAS products. Hutch surpassed its 1,6 millions subscriber on Q4 2007. The technology used is GSM/WCDMA, but Hutch emphasizing their GSM networks rather than a cellular operator that may lead public perception to CDMA technology.
6. Natrindo Telepon Seluler

Being late into commercial because of delays on infrastructure development and funding until finally STC/Saudi Telecom team up with Maxis to develop the company.The license is for GSM/WCDMA, but in it seem NTS still facing on line up their products and services in GSM. NTS believed to synergies with Maxis on their strategy and commited to expand its coverage nationwide as of July 2008, beside Java island, NTS also covers Bali Lombok and Sumatera. NTS also supported by international well known executives, such as CEO Mr. Eric Aas, former Grameen Phone CEO, Mr. Ben Soppitt Head of Corporate Strategy and Business Development, former GSMA Director Startegic Initiatives, Mr Muslim Khan, former Chief of NSS/VAS at Norconsult, CMO, Mr Johan Buse, former CMO and member of the board at T-Mobile Croatia

7. Smart Telecom

The latest entrant into cellular market, using CDMA/EV-DO technology in 1900 Mhz. Strongly supported by China Develoment Bank that brought ZTE as PNV (Primary Network Vendor) and CBOSS as BSS/IN vendors. Smart strength is to sell low cost handset and competitive tariff on-net. Company expected to grow inside out, by leveraging the strength of Sinar Mas Group/SMG to outside world. Smart operation led by former Smart Communication Philippines executive Mr. A.R Boy Martirez, leading commercial division, who brought Smart Philippines into golden era, Mr. BT Lim, managing technology divison, former Mobile8 CEO, Mr. Antony Susilo, former XL as CFO, Mr. Djoko Tata Ibrahim, leading Smart strategic business development.

8. Sampoerna Telekom International/STI

STI services mainly available in the rural area, using CDMA 450 Mhz, suitable for rural area and also less interference with other government bodies using 450 Mhz frequencies.

9. PSN

The GMSS operator using Garuda-1 satellite, launched in year 2000, expected to compete with ICO or Iridium system at that time. The salient products are: satellite fixed wireless – PASTI and mobile – BYRU. The ACeS system were based on GSM technology and ACeS propreitary for air interface.

10. Batam Bintan Telecom

The regional operator for Batam and Bintan areas.

Fixed Wireless Operator, all operators using CDMA2000 1X technology and operates on 800 Mhz frequencies:

1. Telkom – Flexi

2. Bakrie Telecom – Esia

3. Indosat – StarOne

4. Mobile8 – Hepi

Foreign investment:

1. Telkomsel, Singtel – 35%

2. Indosat, Asia Mobile Holding/Qtel – 40,8%

3. Excelcomindo, Telecom Malaysia/Etisalat – 67%/15.97%

4. Hutchison CP – Hutchison Telecom Intl – 60%

5. NTS – STC 51% & Maxis – 44%

6. Mobile8 – KTF 2% & Qualcomm 5%

Handset Providers:

1. GSM/WCDMA based operator

Variety of handsets and model are available in the market

2. CDMA 2000 1X on 1900 Mhz

Nokia dual band, ZTE single band 1900 Mhz, Haier single band 1900 Mhz, Motorola MotoQ 1900 Mhz and some limited model

3. CDMA 2000 1x on 800 Mhz,

Nokia, Sanex, ZTE, Huawei, Samsung, LG, Motorola, Haier, Nexia

4. CDMA 2001 1x on 450 Mhz

Huawei, Ubicom

The competition facts:

1. Fierce price battle and advertisement war, creating market confusions

2. Operators keep spending on building infrastructure

3. New entrants operators typically focus on the Java key major cities

4. 3G/3.5G will be used as Broadband while awaiting the WiMax or LTE

5. Data usage trends is increasing

6. Operators ARPU tends to decreasing but the MoU is increasing

7. Operators tries to combine acquisition mode with ARPU booster, less on retention

8. Churner rate high due to prepaid registration as government rules.

9. Majority of prepaid subscribers over postpaid.

10. Fixed wireless seen as complimentary to mobile cellular

11. Market/public perceptions, CDMA means cheap, due to low cost fixed-service wireless technolgy.

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