Industry players say cellular SMS boom set to continue<\/p>\n
Tony Hotland, Jakarta<\/p>\n
When the short message service (SMS) facility was first
\nintroduced by the cellular industry several years ago, the
\nresponse was quite overwhelming, as many started switching to
\ncellular operators that provided the service.<\/p>\n
Such a response was inevitable as SMSs allow subscribers to
\ncommunicate simply via text messages, instead of voice.<\/p>\n
At present, the contribution of the service to total revenues
\nreceived by cellular providers is already significant and
\ncontinues to grow.<\/p>\n
Association of Indonesian Cellular Operators (ATSI) chairman
\nRudiantara said that non-voice services, mostly in the form of
\nperson-to-person SMSs, accounted for 23 percent of the total
\nrevenues of the country's cellular industry last year.<\/p>\n
\"The proportion is expected to rise to around 28 percent to 30
\npercent this year, and to 35 percent next year,\" he told The
\nJakarta Post over the weekend.<\/p>\n
According to Rudiantara, the industry earned no less than Rp
\n15 trillion (US$1.65 billion) last year and is projected to stash
\nRp 22 trillion this year.<\/p>\n
Factors behind enthusiasm towards non-voice services are their
\nlower rates compared with those for voice services and the
\nincreasing variety of SMS-based applications. The whopping number
\nof new cellular subscribers, who are mostly from the low-income
\nbracket of society, has also given a boost to the use of SMSs.<\/p>\n
\"There are around 23.5 million subscribers now and the average
\nnumber of messages sent per subscriber is three per day. This
\nmeans that around 60 million to 70 million messages are sent per
\nday.<\/p>\n
\"Furthermore, as the industry has begun to touch people on
\nlower incomes, who are more price-sensitive, the SMS is really
\nthe first option for them,\" he explained.<\/p>\n
A short message containing around 170 characters costs up to
\nRp 300, while a one-minute local voice conversation costs Rp
\n1,000 to Rp 1,500.<\/p>\n
Telkomsel spokesman Suryo Hadiyanto agreed with Rudiantara,
\nadding that the trend in communications had taken a different
\ndirection.<\/p>\n
\"The SMS has replaced many activities considered to be a waste
\nof time, such as letter writing or sending greeting cards. The
\nadded value of SMSs is really great,\" said Suryo.<\/p>\n
He said that Telkomsel SMS traffic went up from 25 million
\nbits last year to the current 40 million bits per day, but the
\nnumber could double on holidays like Christmas and Idul Fitri.<\/p>\n
On the other hand, SMS-based applications -- such as mobile
\nbanking, quizzes, polling, data access and ringtone download --
\nhave also been adding a boost to non-voice services.<\/p>\n
\"Such applications contributed 3 percent of the total revenue
\nfrom non-voice services last year and are projected to be 5
\npercent this year. It's quite significant, especially with the
\ncurrent boom in TV shows that invite their viewers to participate
\nvia SMS,\" said Rudiantara.<\/p>\n
Asked if the increasing portion of revenue contributed by non-
\nvoice services could lead to higher rates for the services,
\nRudiantara dismissed the possibility.<\/p>\n
\"It's hard to increase rates here, especially with so many
\ncompetitors. With our kind of cellular industry structure, it's
\nhard to compete if you set rates that are higher than those of
\nyour competitors,\" he noted.<\/p>",
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