Syahrial Ali's Blog

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.

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)

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…)

After more than two months (nov 2008), finally the new BRTI committee members from public representative were announced. The selection process acctually started on October 2008, but only few experts were interested. Then, the registration was extended up to Nov 11th 2008 where the participants reached 88 people. This long waited information finally received by telecommunication stake holder in Indonesia. The minister of communication and information technology announced the 5 elected public representative for BRTI committee members. They are: Danrivanto Budhyanto, Heru Sutadi, Iwan Krisnadi, Nonot Harsono, and Ridwan Effendi. (more…)

Telkomsel, the biggest GSM and 3G operator in Indonesia has announced promotion and replacement some of their high level managements yesterday. The chief executive officer who was held by Kiskenda Suriahardja, currently is held by Sarwoto. Sarwoto was executive general manager of infrastructure division in PT Telkom. Kiskenda is moved to expert member of PT Telkom in the field of marketing.

Telkomsel also replaced the director of planning and development, Mr Syarif Syarial Ahmad with Ms. Herfini Haryono. Herfini was previously Telkomsel vice president for business control. Syarif is moved to  expert member of PT Telkom in the field of technical and operational maintenance.

Mr Eddy Kurnia, PT Telkom vice president of public and marketing communication said that rotation and promotion in PT Telkom are done in accordance with actual requirements in the field.

Indosat Chief Commissioner, H.E. Sheikh Abdullah Bin Mohammed Bin Saud Al Thani on his press released Sunday (1/18/09) informed that Qatar Telecom Q.S.C (Qtel) will start the tender offer process of PT Indosat Tbk (ISAT) share in Indonesia Stock Exchange (BEI) and New York Stock Exchange (NYSE) on Januari 20, 2009. Qtel will buy 24,19% shares at the price of Rp 7.388 per share.

Qtel will buy 1.314.466.775 of B-series shares which also include the share in American Depositary Shares (ADSs). Both shares registered in BEI and NYSE with the total shares of 24,19% from the total ISAT shares. For your information, total ISAT shares are 5.433.933.500 shares.

The tender offer will be started January 20, 2009 and will be closed on on 15.00 JATS and 03.00 NYSE on February 28, 2009.

For your information, QTel has bought 40.81% ISAT share on June 22. According to Indonesian regulation, the total amount of cellular business for foreign investor is 65%. So, QTel wants to fulfill it to the maximum amount allowed.

By maximizing its share in Indosat, QTel seriously wants to reinforce Indosat position and develop it into one of the foremost regional telecommunication companies. This does not only increase the value of the share, but also beneficial for its customer.

This offer will be made through Indonesia Communications Pte. Ltd, QTel subsidiary company. It is supposed to finish in 15 days on March 5, 2009.