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BWA Tender Info (3) – Complete Schedule Released

April 21, 2009 By: Syahrial Ali Category: News

As scheduled, Department of Communication and Information Technology keeps their promise to start the process of BWA tender in Indonesia. As stated in the Minister Decree on Jan 19th, 2009, the tender process shall be started in 3 months times. When the April 19th is on Sunday, then the announcement is released on Monday April 20th.

Yesterday, the chief executive of BWA tender has released a memorandum of information concerning the BWA tender in Indonesia. This info memo document can be downloaded here. The document contents all information concerning the BWA tender, including the schedule, bands, foreign share etc.

Below are the complete schedule of the tender process.

No Activity Dates
01 Tender Announcement April 27, 2009
02 Tender Document Pick Up April 27 – May 1, 2009
03 Written Statement Submission May 4, 2009
04 Submission of questions about tender document May 4, 2009
05 Tender Clarification Meeting May 5, 2009
06 Submission of Tender Requirements including Bid Bond May 6-15, 2009
07 Qualification document Opening May 18-22, 2009
08 Qualification Result May 25, 2009
09 Qualification Result Clarification Period May 26 – June 1, 2009
10 Tender Clarification & training period May 28 – June 2, 2009
11 Tender Session June 3-5, 2009
12 Tender Winner Announcement June 5, 2009
13 Refusal Period June 8-9, 2009
14 Winner Assigment June 10, 2009

It is also mentioned that there are 15 regions and 2 block of frequency, namely 2360-2375MHz and 2375-2390MHz.

As informed many times in this blog, you should be ready now. BWA tender will really be performed very soon.

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Telkom dominates Indonesian international call market

April 20, 2009 By: Syahrial Ali Category: News

JAKARTA, Apr 20, 2009 (Xinhua via COMTEX) — Indonesian telecommunication company, PT Telekomunikasi Indonesia (Telkom), dominates the international call market in the country, a Telkom official said here Monday.

Telkom’s Marketing Communication and Public Affairs VP Eddy Kurnia said that Telkom, through its 007 dial number, is dominating 53 percent of international calls in Indonesia at the moment.

Telkom is currently establishing cooperation with 45 international telecommunication operators. It serves 8.7 million fixed phone subscribers, 13.5 million non-wired subscribers and 68 million cellular phone subscribers.

The state-run telecommunication company is seeking more cooperation with more telecommunication firms to expand its inter connection services.

“As long as it fits with the existing regulation and is profitable, we want to set up more inter connection cooperation with more telecommunication firms in the world,” he said quoted by Bisnis Indonesia daily as saying Monday.

Indonesian international call market has been largely served by two large domestic telecommunication firms Telkom and PT Indonesia Satellite (Indosat). Another domestic telecommunication firm PT Bakrie Telecom tries to tap international call market with dial number of 009.

Learning on the lucrative international call market, a publicly- listed telecommunication company PT Excelcomindo Pratama (XL) intends to open such a call service. (source: www.tradingmarkets.com)

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BWA Tender Process Starting This April

April 15, 2009 By: Syahrial Ali Category: News

On the January 19th, 2009, Indonesian Minister of Communication and Information Technology has released a decree about Broadband Wireless Access (BWA). According to that document, the tender shall be executed in three months times. It looks like that they want to keep their promise. On their website, Directorate General of Post and Telecommunication informs that the BWA tender process will be started on this April.

There is a modification on the participant’s requirement. Previously, the participants were only from telecommunication network providers and service providers, now they will allow the consortium which are the joint venture of  telecommunication network providers and service providers. The purpose of this rule is to widen the opportunity for companies in broadband wireless access business but have a limited fund or want to share the risks.

It is also mentioned that the ownership limitation of  foreign capital are 49% same with other telecommunication provider using radio with circuit switch and packet switch as well as cable based fixed network with circuit and packet switch.

The BWA tender processes consist of tender document picking, hand in the written statement related with tender document, submission of questions, clarification session. Then, complete documents  hand in including the bid bond, and so on.  It will be 3 steps tender  which consist of one qualification step and 2 seals bids. If the process start  in the 4th week of April, the result will be known in June 2009.   The process will take around 2 months times. So, be ready!!!

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Beauty Contest for Additional 3G Bandwidth

April 08, 2009 By: Syahrial Ali Category: News

Indonesian Government will launch another 3G tender for a block of frequency (5MHz) using a beauty contest on April this year. For your information, all 5 3G operators (Telkomsel, Indosat, XL, HCPT and NTS) currently just have 5 MHz bandwidth. Previous Minister of Communication and Information Technology, Mr. Sofyan Djalil has already given a clue that some times in the future, government will provide additional bandwidth for the operator who really need it. And now, that promise is fulfilled.

Current Minister of Communication and Information Technology, Mr. Mohammad Nuh said that additional bandwidth for 3G is really needed in accordance with subscriber increments. Current channels are so crowded so that operator needs additional channel to maintain the quality of service.

Although using a beauty contest tender, government still retain the price as release on last tender (2006), that is IDR 160b ( US$15m) per 5 MHz. Telkomsel has agreed with that price while other operators bid for a lower price, i.e: PT Excelcomindo Pratama Tbk IDR 40b,  PT Indosat Tbk IDR 30b, PT Natrindo Telepon Seluler IDR 20miliar, and HCPT just bid for IDR 12b.

As can be seen from the price bid, Telkomsel will won the tender. If Telkomsel win,  Telkomsel will have a big opportunity to outperform the Indosat  for the data service. For your information, Indosat is the leading operator on providing mobile data services.

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Operators’ Capex in the Year of Crisis

April 04, 2009 By: Syahrial Ali Category: News

This year, 2009, is considered as the year of crisis. Is there any effect on operators’ capex? Here are the data. Indosat the 2nd largest GSM and 3G operator in Indonesia  just plans to spend around US$600m for its 2009 capex, down just below 50% of last year capex of US$1.25b. XL, the 3rd largest, plans US$700m for its 2009 capex, 44% lower than previous year capex (1.25b). Telkomsel, the largest GSM and 3G operator has allocated US$1.5b for 2009 capex. This figure is exactly the figure of 2008. However, if we investigate closely, Telkomsel has to finance its USO project for around US$2m. So, Telkomsel also decrease their 2009 capex by a small amount only.

How about other operator?

Bakrie telecom, the 2nd largest CDMA opeartor in Indonesia plan a US$200m for its capex in 2009. This figure is equal to the figures in 2008.  Axis, the new comer in GSM and 3G business will spend around US$500m for its 2009 capex, less than previous plan US$700m. In 2007-2008, Axis spent around US$1b. Axis just moved to its new office to Dea Tower in Mega Kuningan Jakarta. Meanwhile, Mobile-8 just want to spend around US$40m in 2009. This fund is the balance of last year capex which planned for US$140m but spent only US$100m.

From the figues above, we can see that almost all operators down their expenditures in 2009. It means that the global crisis affect their business. (data taken from various sources)

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HCPT 2008 Report

March 05, 2009 By: Syahrial Ali Category: News

SOURCE  Hutchison Telecommunications International Limited

The Hutchison Telecommunication International Limited just released the complete report for the financial year 2008 for all of the company in the group, including the PT. Hutchison CP Telecommunications (‘HCPT’) Indonesia. The main points are: — Customer base more than doubled to 4,501,000, while  — Accelerated network expansion with over 6,300 base stations on-air. Complete report is as below.

The Group’s Indonesian operation PT. Hutchison CP Telecommunications (‘HCPT’) continued to report good progress in its second year of operation despite a very challenging environment. Total customer base grew over 120% yearly on the back of accelerated network expansion across the country, strong branding and an effective distribution system. HCPT ended the year 2008 with more than 6,300 base stations on-air covering over 67% of the total population and all major cities in the country. It expects to increase the size of its networks to over 9,000 base stations by the end of 2009. HCPT is looking to maintain strong customer acquisition in 2009 in line with its expanded coverage. (more…)

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