Thu, 23 Mar 2006
RI telecom market still ringing up interest

The telecommunications industry has been the fastest growing in Indonesia for the last few years, and is predicted to maintain its growth rate this year.

"Indonesia remains one of the most exciting geographical areas in Asia. It is very promising," Andrew Lau, communications, media and utilities general manager for Oracle South Asia, told reporters recently during a meeting of Oracle Asia Pacific executives in Phuket, Thailand.

The highest growth has been in the cellular phone sector, where it has averaged 60 percent per year since 2000.

Previously, there were only two telecommunications providers (telcos) in Indonesia. But now there are seven operators, and this year two new operators will enter the market, making the competition even stiffer than ever.

Adi J. Rusli, managing director of Oracle Indonesia, said that spending on applications and technology in the Indonesian telecommunications industry was expected to almost quadruple to around Rp 181 trillion (US$19.7 billion) by 2010 from around Rp 48 trillion last year.

Currently, he said, fixed-line telephone penetration in Indonesia only stood at four percent of the nation's 220 million people, while there were 46 million cell phone users.

As the telecommunications industry was service-oriented, telcos would have to focus on managing and maintaining customers. They would have to transform themselves into service-oriented businesses by expanding their product portfolios and increasing their value-added services.

"An interesting trend in Indonesia is that customers very often have a number of different SIM cards so that they can avail of the services of different operators. This means that operators always need to improve their services so as to maintain their customer base and attract new customers," Andrew said.

He said that Oracle Indonesia had forged strong collaboration with telcos in Indonesia by offering integrated business applications and technology solutions to customers.

"Our solutions expertise, combined with our market leadership in the world's telecommunications sector, enables us to help Indonesian telcos to achieve their business targets," said Andrew. (Benget Simbolon Tnb)


Thu, 23 Mar 2006
From: JakChat
Comment by cherry
They pursued the market by various gimic marketing that arousing...That sometimes benefits to customer but also damaging...
And now, I was paid attention...
The perpetrators of the telecommunications business made methods personally to attract the customers..
Like fren to fren only Rp.1.380 from any cities....And Esia, chatted one hour only Rp.
1000...and many more the ways of them to attract the costumers...but whateber..telecommunication for at this time its very importent and it's commonly the costumers, especially for bussines men..only choise the simple one...


Thu, 23 Mar 2006
From: JakChat
Comment by chicha_lex
Really, you guys are talking about my expertise...

TELCO... But the company that I helped to buy Excelcomindo is now loosing money, because of stiff competiyion!!! So, for the user, looks interesting, but for the operator, it is just another nightmare. If Indo Gov decided to add on new opereator in the next few years, there will be less and less opportunity for the operators to make profit!!! Get good revenue, is ok, but, PROFIT is another story!!!

Later, they will gang up, and start raising their prices and will hit the users... this is what happened in India, where the operators are in cahoot, and the users pays for it...

Just another observations....


Thu, 23 Mar 2006
From: JakChat
Comment by cherry
hmmm...kalau istilah beberapa kalangan di Indonesia.."Biar Bangkrut Asal kesohor".. sometimes in Indo, gimic marketing yang di pergunakan..adalah jilat menjilat..

let Kuku translate to you guys..


Sat, 25 Mar 2006
From: JakChat
Comment by KuKuKaChu
so i'm the resident translator now, am i? or rather, your personal secretary??

"Biar Bangkrut Asal kesohor" means "let it go bankrupt as long as it's famous". doesn't translate well into english really; sounds much better in indonesian ...

"jilat-menjilat" means, literally, everyone is licking everybody else. it means, everyone is sucking up to each other. sounds like the australian bureaucracy.


Sat, 25 Mar 2006
From: JakChat
Comment by cherry
Quote:
Originally posted by KuKuKaChu:
so i'm the resident translator now, am i? or rather, your personal secretary??

"Biar Bangkrut Asal kesohor" means "let it go bankrupt as long as it's famous". doesn't translate well into english really; sounds much better in indonesian ...

"jilat-menjilat" means, literally, everyone is licking everybody else. it means, everyone is sucking up to each other. sounds like the australian bureaucracy.
"so i'm the resident translator now, am i? or rather, your personal secretary??"

I didn't meant like that mr.Kuku


Sat, 25 Mar 2006
From: JakChat
Comment by dormouse
Telco economics are exceedingly complicated. Most billing systems are on average 13% inaccurate – in most cases this is on the customer side – customers are not charged for about 13% of calls. I know you will not believe me, but I can assure you it is true.

To complicate matters, infrastructure is a “sunk cost”. Once you have put up a mobile tower, its up. If one caller uses it, or 1 million callers use it, the cost is the same.

Add to this the tendency of prepaid users to “churn” from provider to provider, seemingly at random, and you have a recipe for disaster unless you have VERY good management.

OneTel in Australia suffered from all of the above, and went bankrupt!

The object of the exercise (although most people in the Telco industry refuse to accept it) is to have a maximum number of users, making the MINIMUM profit out of them, with worlds best practice financial controls. The logic is simple, it is better to make a consistent 1000 Rp profit a month out of 10 million customers, than to make 10,000 Rp profit a month out of 1 million customers. Because given the inability ot differentiate between Telco providers, most users will switch to the cheapest. And that means, all other things being equal, the one who makes the lowest profit per customer…..



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