Huge potential for cellular operators in Indonesia<\/p>\n
T. Hidayat, Contributor, Jakarta<\/p>\n
Among the businesses in the country, the telecommunications
\nindustry is enjoying some of the most rapid growth. It survived
\nthe economic crisis that hit the country in 1997. Its irrefutably
\nenduring quality has made this strategic industry one of the
\nbusinesses with the most potential in Indonesia.<\/p>\n
Cellular telephones, for example, have reached sales figures
\nof more than 11 million within a couple of years, far exceeding
\nthe number of fixed-line telephone subscribers, which stands at
\n7.5 million.<\/p>\n
A number of observers and industry players are optimistic
\nabout further growth. One of the reasons behind this optimism is
\nthat cellular technology is offering an array of innovative
\ndevelopments, along with the enhanced features of the handsets
\nthemselves.<\/p>\n
The robust growth of the cellular market has not only
\nattracted operators or manufacturers, but content providers as
\nwell. With the ever increasing demand by consumers for various
\nfeatures and information, the business is wide open for content
\nproviders to make available the required services using
\nsophisticated telecommunications technology.<\/p>\n
One of the more successful content providers is In Touch.
\nTogether with Nokia, In Touch has developed a wide range of
\ninnovative features that meet the requirements of even the most
\ndemanding customer, such as specially designed and highly
\ncreative ringtones, picture messages, Multi Media Services (MMS),
\ninteractive news messages and reports on the Jakarta Stock
\nExchange.<\/p>\n
"We provide various sorts of content, from business and sports
\nto games," said Kendro Hendra, managing director of In Touch.<\/p>\n
With all these features, Kendro said, apart from revenue based
\non voice telecommunications, cellular service providers are able
\nto create larger and newer market segments, which comprise
\nsubscribers that prefer lifestyle-oriented services such as
\nentertainment, games and so forth.<\/p>\n
These new features have become real added values that not only
\nprove significant advances have been made in cellular technology,
\nbut also provide huge profits for manufacturers. The general
\nmanager of Nokia Mobile Phone Indonesia, Hasan Aula, said: "A
\ncellular phone can reflect the owner's individual personality. It
\nis not merely a tool for communication, but it has become an
\nintegral part of lifestyle. This is one of the reasons why we
\nhave launched funky-plasa.com to educate our customers about the
\nlatest features on Nokia's mobile phones. On this website we also
\nprovide simulations to make it easy for them to understand how to
\nuse the features."<\/p>\n
In today's highly competitive cellular phone market, things
\nhave not changed drastically, with Nokia still holding the top
\nposition. Hasan attributed the company's success to its well-
\nintegrated marketing strategy and the consistent launching of
\nproducts that match consumers' needs. Regarding its service,
\nHasan said that Nokia constantly enhances the quality of services
\nto ensure client satisfaction. "Our after-sales service, for
\nexample, is on the top of our priority list."<\/p>\n
Nokia also provides customers with another convenient method
\nfor purchasing its products. It cooperates with several major
\nbanks in the country so that customers can buy Nokia cellular
\nphones through a specially designed installment program with low
\ninterest rates.<\/p>\n
Not only cellular phones with GSM technology are flourishing,
\nas CDMA-based cellulars are also now enjoying growing popularity,
\nwith the latest service -- Telkom Flexi -- launched recently by
\nPT Telkom and followed by another provider, Indosat. These types
\nof cellulars using the rates of fixed-line telephones are
\nconsidered a serious threat by most providers of GSM-based
\ncellulars. The result is a price war that has seen subscription
\nrates and rates for communicating via GSM cellulars fall.<\/p>\n
The area of competition available for GSM providers is a wider
\nrange of services and features to pamper customers and maintain
\nloyalty. "We will keep enhancing our services and features apart
\nfrom those related to voice-communication, like Life In Hand, our
\nfeature that provides news, various information, horoscopes and
\neven games," said Erik Tan Have, general manager of marketing and
\nproduct management at Excelcom.<\/p>\n
One telecommunications observer, Roy Suryo, however, was not
\ntoo happy about current developments. He lamented the fact that
\nonly 5 percent of the country's population has any kind of access
\nto telecommunications. "We are lagging behind the neighboring
\ncity-state Singapore, where close to 70 percent of this much
\nsmaller nation's people have phones," he said.<\/p>\n
In spite of the low figure of telephone ownership or
\nsubscribers, many analysts and observers agree that the country
\nholds huge potential for the telecommunications industry,
\nincluding cellular phones. Both the government and industry
\nplayers still have a lot to do to create growth and enlarge the
\nmarket.<\/p>\n
Like Hasan said: "Prospects are bright as telecommunications
\nis already established as an essential part and need in our
\nmodern lives. Our role in the market is surely to benefit our
\ncurrent customers and would-be customers in the near future."<\/p>",
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