Syahrial Ali's Blog

On previous posting, it has been written the first reason why incumbents operator have several advantages in cellular businesses in Indonesia. The second reason is the entry time of the new comers. All new comers were started their business when the incumbents have a established network. So, they were too late.

The impact of the late entry time are:

1. New users will be protested about coverage limitation. This leads to unhappy users and back to incumbent operators.

2. Most new users who join the new comers are in low economic level who just have very low budget for their communication need. Middle or high economic level who spend high communication cost already have their mobile number. They already received good communication services from incumbent operators so they will keep their mobile number. (more…)

As written long time ago in several postings, Indonesia currently has 11 cellular operators, 5 of them using GSM and 3G technology and the rest (6) using CDMA technology. Only 3 out of 11 operators are considered in a good business condition. All of them are GSM and 3G operators, namely Telkomsel with almost 60m subscribers, Indosat with almost 40m subsribers and Excelcomindo Pratama (XL) with almost 30m subscribers. (more…)