Syahrial Ali's Blog

Indonesian Telecommunication Operators’ Profile

TELKOMSEL

Telkomsel is the leading operator of cellular telecommunications services in Indonesia by market share. By the end of March 2008, Telkomsel had 51.3 million customers which based on industry statistics represented an estimated market share of approximately 51%.Telkomsel provides GSM cellular services in Indonesia, through its own nationwide Dual band 900/1800 MHz GSM network, and internationally, through 288 international roaming partners in 155 countries (end of 2007). In September 2006, Telkomsel became the first operator in Indonesia to launch 3G services.The company provides its subscribers with the choice between two prepaid cards-simPATI and Kartu As, or the post-paid kartuHALO service, as well as a variety of value-added services and programs.Telkomsel’s operations in Indonesia have grown substantially since the commercial launch of its post-paid services on 26 May 1995. In November 1997, Telkomsel became the first cellular telecommunications operator in Asia to introduce rechargeable GSM pre-paid services.Telkomsel’s gross revenues have grown from Rp 3.59 trillion in 2000 to Rp 44.38 trillion in 2007. Over the same period, the total number of Telkomsel’s cellular subscribers increased from approximately 1.7 million as at 31 December 2000 to 47.9 million as at 31 December 2007.

Telkomsel has the largest network coverage of any of the cellular operators in Indonesia, providing network coverage to approximately 95% of Indonesia’s population and is the only operator in Indonesia that covers all of the country’s provinces and regencies, and all counties (“kecamatan”) in Sumatra, Java, and Bali/Nusra. The company offers GSM Dual Band (900 & 1800), GPRS, Wi-Fi, EDGE, and 3G Technology.

Share Holder:
Telkom 65%, Singtel: 35%

Telkomsel’s Management Team:

Board of Directors

• Chief Executive Officer : Sarwoto Atmosutarno
• Chief of Planning and Development Officer: Herfini Haryono
• Chief of Finance Officer: Triwahyusari
• Chief of Operation Officer : Ng Peng Foo (David Ng)
• Chief of Marketing Officer : Leong Shin Loong

Board of Commissioners

• Chief Commissioner : Rinaldi Firmansyah
• Commissioner Members:

• Arief Yahya
• Losso Judijanto
• Lim Chuan Poh
• Ng Kwon Kee

INDOSAT

PT Indosat , Tbk was established in 1967 as a foreign investment company to provide international telecommunications services in Indonesia, commencing its operations in 1969 with the inauguration of the Jatiluhur earth station. In1980, the Government of Indonesia acquired all of the shares of Indosat, which then became a State-Owned Enterprise (SOE). In 1994, Indosat listed its shares on the Jakarta Stock Exchange, the Surabaya Stock Exchange and the New York Stock Exchange, achieving the distinction of being the first SOE to be listed overseas.

From 1969 until 1990, Indosat provided switched and non-switched international telecommunications services, including international direct dialling telephony, international data network communications, international leased lines and international television transmission services.

Entering the 21st century and in keeping with the global trends, the Government of Indonesia decided to deregulate the national telecommunications sector, opening it up to free market competition. From 2001, all cross-ownerships between Indosat and the domestic telecommunications provider, Telkom, have been eliminated, whereas the exclusivity rights of the two telecommunications service providers will be terminated in several stages.

Indosat pursued a main course of development of its cellular business starting in the mid 90′s. In 2001, we established PT Indosat Multi Media Mobile (IM3), followed by acquiring full control of PT Satelit Palapa Indonesia, thus making IndosatGroup the second largest cellular operator in Indonesia.

At the end of 2002, the Government of Indonesia undertook a 41.94% divestment of its shares in Indosat to Singapore Technologies Telemedia Pte. Ltd. through the holding company of Indonesia Communications Limited. With this divestment, Indosat is once again a foreign investment company, offering full fledged, integrated network and services in information and communication solutions.

On November 2003, following the signing of the Merger Deed to merge Satelindo, IM3 and Bimagraha into Indosat, Indosat emerges as a cellular focused Full Network Service Provider (FNSP). By consolidating its cellular, fixed telecommunications and MIDI services into a single organization, Indosat is well-positioned to be the telecommunication service provider with the comprehensive range of products offering in Indonesia . This was followed by a comprehensive transformation program, launched in 2004, encompassing in human resouces, technology, platform and corporate culture and values. The transformation has started to demonstrate encouraging results as the company posted record revenues that surpassed Rp 10 trilion threshold and increased in margin its 10th year as a publicly listed company.

Indosat is the second largest mobile operator with 16.704.639 subscriber base by the end 2006. Indosat launched its 3.5G for the Jakarta and Surabaya regions in November 29, 2006. Indosat 3.5G in the intermediate generation of the 3G technology, which enables subscribers to enjoy better quality voice, video or hifh speed data/internet access of up to 3.6 Mbps or around 9 times faster than standard 3G service. All Indosat node B has utilized the HSDPA (High Speed Downlink Packet Access) technology. Indosat is the first 3G operator , which fully adopt the HSDPA technology base in Indonesia.

On December 15, 2006, Indosat has accepted 2 channels no. 589 and 630 on its 800 MHz frequency band to operate Local Wireless Fixed Telecommunication Network in Jabotabek area. Following the approval of these 2 channels, Indosat will continue to expense local wireless fixed telecommunication services in Jabotabek area and continue to develop cellular services thoughout Indonesia.

2007 was one of Indosat’s best years ever in terms of operational results, network expansion and enhancement, product and service innovation, and customer service delivery.  Our cellular customer has achieved 24.5 million subscribers and served with 10.760 numbers of BTS in all over the nation.  Indosat also committed to applying principles of good corporate governance towards the highest standard.  We will continue to develop and promote growth for the company in 2008.  With our strong brand in the market and improved network coverage, we are confident we can maintain our growth momentum.

Share holder:
Government:
Qtel: 65%
Public:

Total Shares: 5.433.933.500 units

EXCELCOMINDO PRATAMA (XL)

PT Excelcomindo Pratama Tbk. (“XL” or the “Company”) was established on 6 October 1989 under the name of PT Grahametropolitan Lestari with its main business being in trading and general services.In 1995, in cooperation with Rajawali Group – a shareholder of PT Grahametropolitan Lestari – and some foreign investors (NYNEX, AIF and Mitsui), PT Grahametropolitan Lestari changed its name to PT Excelcomindo Pratama with the core business of providing basic telephony services.XL started its commercial operations on 8 October 1996, by providing cellular mobile telephony services using the GSM 900 technology. Later, XL was also awarded the Cellular Mobile Network License for DCS 1800, and the Closed Regular Network License, as well as licenses for Internet and Service Provider (ISP) and Voice over Internet Protocol (VoIP). In 2006, XL obtained 3G Cellular Mobile Network License and started to launch commercially in September 2006.Until now, XL has built more than 13.000 Base Transceiver Station (BTS) towers all around Indonesia to serve more than 22 million customers, and XL is committed to continously strengthen its quality and coverage in the future, in order to serve customers communication needs anytime, anywhere.By the end of first quarter of 2007, more than 156 XL Centers are available throughout Indonesia, supported by the Contact Center services who are ready at 24 hours a day, seven days a week. In 2006, XL obtained the 3G license and then launched innovative 3G-based services. Not just that, XL is also launched Video Contact Center, a 3G-based technology customer support.

With all these quality product, services and commitment to provide the best supports to the customers, XL has won several awards and recognitions. These awards were given for XL‘s outstanding achievements to extensively provide the best and innovative products and services.

Share holder:
Indocel Holding Sdn. Bhd.: 83.8%
Emirates Telecommunications Corp. (“ETISALAT”) International Indonesia Ltd.: 16%
Public: 0.2%

Bakrie Telecom

Bakrie Telecom has been one of the pioneers in Indonesia ‘s telecommunication industry. It has certainly been the leader in providing affordable fixed wireless services to customers, particularly those in the underserviced areas. Having adopted the more spectrum efficient Code Division Multiple Access (CDMA) technology, Bakrie Telecom is now poised to become a nationwide operator with its Esia brand.

Since its launch in September 2003, Esia has been a market shaker and mover. We have introduced various products and programs that customers find to be highly attractive, and soon our innovations are replicated by other operators-fixed as well as mobile wireless. Bakrie Telecom is now the fastest growing telecom operator in Indonesia, offering a growing portfolio of products and services.

A subsidiary of the diversified Bakrie Brothers, we have entered the nationwide telecom industry by continuously creating “disruptive innovations” Our “Talk Time” public awareness program, for example, has changed the way subscribers view their monthly bills, repositioned the pulsa frame of mind as more expensive and convinced the public that Esia offers the best value for money.

We exist not only to serve the telecom users by introducing disruptive innovations, but more importantly, to help redefine the industry to ensure that telecommunication will bring the maximum benefits to the people of Indonesia.

Share Holder: Bakrie & Brother: 22.43%; Credit Suisse Singapore Branch: 8.08%; Sinar Mas: 6.2%; and the rest owned by public.