Syahrial Ali’s Blog

By Raju Shanbhag
TMCnet Contributing Editor

Grameen Foundation, Bakrie Telecom and Qualcomm (News - Alert) Incorporated today announced the launch of Indonesia’s first Village Phone Program, “Uber ESIA.”

With the system, rural communities will get affordable wireless telecommunications services using 3G CDMA technology, according to the companies. Uber ESIA, which means “joint cooperation,” is one of many similar programs around the world already launched by Grameen Foundation as Village Phone Program, officials say.

To facilitate microfinance clients to borrow the money needed to purchase a Village Phone “business in a box,” Grameen Foundation, Bakrie Telecom and Qualcomm say they’ll be working with local Indonesian microfinance institutions. The “business in a box” includes a wireless 3G CDMA-based phone and charger, marketing materials, tariff posters, business cards and training materials. The Village Phone Operators will rent the use of the phone within their communities on a per-call basis, as they will be operating their businesses in rural villages where telecommunications services did not previously exist.

With the Village Phone model, officials say, Microfinance institutions provide financial services and earn income on the loan interest. They can also get commissions from the sale of prepaid airtime to their clients. Telecommunications companies can look to tap new markets, according to the companies.

More importantly, individuals living in impoverished communities gain access to affordable telecommunication and information services, officials from the companies say. The VPOs provide affordable rates to their customers. With the help of Bakrie Telecom’s Uber ESIA service based on 3G CDMA wireless technology, this project seeks to empower underserved communities in rural Indonesia with mobile communications.

This program also empowers women who live in rural area, officials say. Although have a significant role in helping the family’s income, they still have limited positions and access to economic resources. Central Statistics Agency data shows that out of a population of 97.5 million, only 35.4 million women (36.3 percent) are recorded as employed, of which 59.9 percent or 21.2 million graduated from elementary schools.

“Building on the visionary leadership of Grameen Telecom, Grameen Foundation is committed to ensuring that the rural poor are not left behind in this rapidly changing information and communications technology environment,” said Alex Counts, president and chief executive officer of Grameen Foundation. “Microfinance helps to put technology within financial reach of the poor and we are pleased to work with Qualcomm and Bakrie Telecom to help Indonesia’s rural microentrepreneurs build self-sustaining businesses that also enhance the socio-economic development of their wider communities.”

JAKARTA, Jul 25, 2008 (AsiaPulse via COMTEX) — The Capital Market and Financial Institution Supervisory Board (Bapepam-LK) said Qatar Telecom (QTel) is only allowed to buy a maximum of 8.2 per cent of Indonesian state telecommunications operator Indosat’s (JSX:ISAT) shares.

“There is a sectoral regulation restricting share purchases so QTel cannot buy more than 8.2 per cent of Indosat shares,” Bapepam-LK Chairman Fuad Rahmany said here on Thursday.

He said QTel must not violate a regulation allowing a foreign company to hold not more than 49 per cent of a national company’s shares. “We must safeguard the sectoral policy to protect the national interest,” he said.

Under a presidential regulation on the negative investment list, a foreign company is only allowed to control a maximum of 49 per cent of a national company’s shares, he said.

QTel was currently already controlling 40.8 per cent of Indosat shares so that it could only be allowed to increase its stake in the country’s second largest telecommunication operator by at most 8.2 per cent, he said.

Asked to comment on reports that QTel was cooperating with national businessman Rahmat Gobel to increase its shares in Indosat, Rahmany said he lacked precise knowledge about the cooperation.

“We have no objection to the cooperation but it will never make QTel control more than 49 per cent of Indosat shares,” he said.

(ANTARA)

Region’s leaders prepare to meet in Kuala Lumpur 

KUALA LUMPUR, MALAYSIA: After some delay in the licensing process, which ended last year with four 2.3GHz wireless broadband spectrum licenses awarded, WiMAX is about to launch in Malaysia. The new services are expected to considerably improve access to broadband services in what is one of South East Asia’s most dynamic communications markets, and will undoubtedly be followed with great attention by the neighbouring markets. One of the four lucky licensees, and first operator to launch the services in June, is Packet One Networks, a company that has been active in the market for some time providing wireless internet access via Wi-Fi. The company is headed by Michael Lai, who boasts an impressive experience in ICT in the region, having been CEO of TMNet, and Senior Vice President of Branding and Market Development for Celcom. Lai will share his extensive experience and vision of the region’s broadband developments in a keynote presentation at South East Asia Com, the leading event for the region’s telecommunications professionals which will take place in Kuala Lumpur on July 23-24. Lai will join a group of keynote speakers representing the region’s leading operators and regulators, gathering to share experiences and discuss the optimum strategies to maximise the growth of communications in the ASEAN region and neighbouring countries. Major operators to be represented include Indosat (represented by President Johnny Swandi Sjam), Vietnam Posts and Telecommunications (with Vu Ngoc Tien, Deputy Director of International Cooperation Department), Laos’s ETL (with Vanthong Sosamphanh, Director of International Telecommunications Division), Indonesia’s PT Excelcomindo Pertamina (with Wim Timmermans, CFO), as well as Thailand’s AIS, Malaysia’s Maxis, Hong Kong’s PCCW, among others. They will have a chance to network with some of the region’s regulators and policy makers as well, with presence from the Malaysian Communications & Multimedia Commission, Indonesia’s regulator BRTI and Ministry of Communication and Information Technology, and Malaysia’s Ministry of Energy, Water & Communications, supporting the event. Presentations from telecommunications solutions provider will give updates on technology and product evolution, with contributions from Altobridge, Green Packet, Smarttrust, and Ulticom. Over two days, the multi-streamed conference will provide not only learning opportunities from the expert speakers, but also multiple networking activities to maximise the sharing of ideas (speed networking, drinks reception, online networking tool), as well as an exhibition showcasing the latest telecommunications solutions from regional and international companies.

Almost all cellular operators in Indonesia right now are promoting their incredible low tariff to attract new subscribers. We may see their advertisement in various media such as: Free call for 3 months (Smart Telecom), Rp 1/call (Axis World), Free call and SMS (XL, actually from 12am - 6 am), Rp 0.5/second (Telkomsel), Rp 9/sec for 1 minute, then free (Mobile-8), Rp 60/call (HCPT), Rp 1/character for SMS (Bakrie). The customers become confuse which operator is suitable for him/her. Will he/she try every operator? Of course not.

As written in previous posting value-communication and standard-quality-of-services, several service providers’ networks are not ready to serve such number of new subscribers. Hence their quality of service drop significantly.

According to the survey conducted by Sharing Vision on April 2008, the Indonesian customers’ dissatisfactions rise by significant number both for GSM (global system for mobile communication) and CDMA (code division multiple access) subscribers. The survey items consist of service features, network response and the clarity of the voice. The figures are 7%, 19% and 16% respectively. This figures are far above the same survey on August 07, which only 3%, 5% and 2% respectively.

The survey also noted that the customers are fooled by the advertisements. They feel that operators seemed to hide some extra cost in their tariff. On each advertisement there is a star (*) which mention that terms and condition applied. It means that there is a special condition when the tariff applied such as on-net call, time of call, for special product only, etc.

So, the tariff war has result not only the drop in quality of services but also disappointed customers. All customers now will experience the low quality signal, drop call, call congestion, undelivered or delay SMS, etc.

In operator side, what have they got? New subscribers only. As the tariffs are going down to the lowest level, how much money can they earn from such numbers of new subscribers? In my opinion, tariff war has damaged both the customers and the operators. Do you think so?

We are waiting for regulator to fix up the mess in Indonesian Cellular Telecommunication. The ministry rules on Minimum Standard of Quality will be applied started on July 21st 2008. Since then, hopefully we can have a better telecommunication services.