JP\/13\/Telco<\/p>\n
Sari P. Setiogi
\nThe Jakarta Post
\nJakarta<\/p>\n
The year 2003 has been a bright year for the telecommunications industry.<\/p>\n
The number of cellular phone subscribers has increased
\nsteadily, prompting cellular phone manufacturers to intensify
\nsales campaigns.<\/p>\n
Cellular phone operators are also fighting fiercely with new
\nplayers introducing code division multiple access (CDMA)
\ntechnology to compete with the old system that uses the global
\nsystem for mobile communication (GSM) technology.<\/p>\n
The government also announced the winner of a bid for the
\ndevelopment of the most advanced third generation (3G) cellular
\ntechnology in the country.<\/p>\n
The number of cellular phone subscribers across the country is
\nestimated to reach 18 million by the end of 2003, an increase of
\nmore than 50 percent from last year's 11.4 million, according to
\nthe Indonesian Association of Cellular Telecommunications (ATSI).<\/p>\n
It is the highest growth in seven years since cellular phones
\nusing GSM technology were first introduced in the country. The
\nmain cause of the rapid growth is the lower cellular phone
\nsubscription rate and cheaper handsets.<\/p>\n
Despite the rapid growth, the number of cellular phone
\nsubscribers account for a mere 8 percent of the nation's
\npopulation of more than 215 million. This means the market's
\npotential is still vast.<\/p>\n
Thus far, the industry is controlled by operators using GSM
\ntechnology, including Telkomsel, Satelindo and Excelcom.<\/p>\n
But their domination is being challenged by new players using
\nCDMA technology.<\/p>\n
The CDMA operators are TelkomFleXi, owned by the country's
\nlargest telecommunications company PT Telekomunikasi Indonesia;
\nesia, owned by the Bakrie Group; and Mobile 8, controlled by the
\nBimantara Group.<\/p>\n
Bakrie is developing esia after acquiring PT Ratelindo, an
\noperator of advanced mobile phone services (AMPS) technology,
\nwhile Bimantara is developing its Mobile 8 after buying out three
\nAMPS operators: PT Komselindo, Metrosel and Telesera.<\/p>\n
TelkomFlexi and esia are licensed to operate with limited
\ncoverage, while Mobile 8, like the GSM operators, is allowed
\nnational coverage.<\/p>\n
Industry sources said another new player, Wireless Indonesia
\n(WIN), will join the CDMA market soon.<\/p>\n
Mobile 8's president and CEO BT Lim boasted that Mobile 8
\ncould become a serious contender for the existing GSM operators
\nas CDMA has several plus points compared to GSM, including high-
\nspeed data delivery.<\/p>\n
Lim said that the CDMA service provided by his company is
\ncapable of delivering data at 120 and 150 kilobits per second
\n(kbps), while the data delivery speed provided by existing GSM
\noperators stands at about 30 kbps.<\/p>\n
The delivery speed is crucial when cell phone users want to
\ndownload videos, songs and data from the Internet using cell
\nphones. The higher the delivery speed, the faster the downloading
\nprocess. Cell phone subscribers thus pay less to download.<\/p>\n
Lim said that in the future the data delivery speed will be
\none of the main concerns of customers.<\/p>\n
Existing GSM operators have also improved their data delivery
\nspeed using the so-called general packet radio services (GPRS).<\/p>\n
But industry analysts say that CDMA technology is still better
\nthan GPRS in terms of data delivery speed.<\/p>\n
In order to improve its services, Telkomsel, the country's
\nlargest cell phone operator, plans to launch \"TelkomselEDGE\" in
\nthe first quarter of 2004 which the company claims delivers data
\nfaster, Telkomsel's head of packet data network Ivan C. Permana,
\ntold the Post.<\/p>\n
According to him, this technology enables users to download
\nvideo music clips, have full multimedia messaging as well as high
\nspeed color Internet access at 100 kbps. In order to use the new
\nservice, people should use EDGE-ready cell phones, such as Nokia
\n6220.<\/p>\n
Ivan, however, played down the significance of data delivery
\nspeed for customers, saying that people mostly use cell phones
\nfor voice communication rather than sending data.<\/p>\n
\"Out of Telkomsel's nine million subscribers, only 400,000
\nregularly use their cell phones for data communication,\" he said.<\/p>\n
As existing cell phone operators are vying to introduce new
\ntechnology, the government launched a bid for a contract to build
\nthe most advanced 3G technology.<\/p>\n
This technology will not only support voice communications but
\nalso real-time video and full-scale multimedia.<\/p>\n
A 3G device functions as a phone, a computer, a television, a
\npager, a videoconferencing center, a newspaper, a diary and even
\na credit card.<\/p>\n
A new player, PT Cyber Access Communications -- a subsidiary
\nof Thailand-based TelecomAsia -- won the auction to build the 3G
\nproject here. TelecomAsia is a subsidiary of Thailand poultry
\nfood giant Charoen Phokphand.<\/p>\n
The technology will not be available here until 2005, almost
\nthe same time that it will be available in Europe.<\/p>\n
The rapid development in the telecommunications world here is
\nseen by mobile phone manufacturers as a big chance to market
\ntheir products aggressively.<\/p>\n
Almost all mobile phone producers here are optimistic about
\nraising sales by 30 percent to 50 percent next year.<\/p>\n
Market leader Nokia launched 15 new types in the country this
\nyear, for the low-end and high-end markets. Among the 15 is the
\n7600 type, which is a CDMA\/GSM phone. The gadget allows a user to
\nswitch from CDMA to GSM, and vice versa.<\/p>\n
The general manager of Nokia Indonesia, Hasan Aula, said he
\nbelieved with the development of the telecommunications
\ntechnology here, the market, which is currently dominated by the
\nlow-end market, will soon shift to the mid-market.<\/p>\n
\"The use of mobile phones will no longer be only for voice
\ncommunication,\" he said.<\/p>\n
In its report published in November this year, marketing
\nresearch firm Synovate said out of 19,222 cell phones users in
\nJakarta surveyed by the firm, 29 percent were said to have cell
\nphones with Internet access.<\/p>\n
Separately, global technology research company Gartner
\npredicts sales of smart phones -- phones that can do almost
\nanything from taking video pictures, still pictures, act as an
\norganizer, download Internet data, as well as play games -- will
\njump by 140 percent next year.<\/p>\n
There are smart phones already available on the local market.
\nNokia launched one in its Communicator series last year and its
\nlatest 6600 this year, while SonyEricsson launched its P800 last
\nyear and the P900 this year. Another producer to join the smart
\nphone market is Britain-based O2 with its PDA-phone XDA and XDA
\nII.<\/p>\n
New smart phones sell for an average of over Rp 5 million
\n(US$556) at the moment.<\/p>\n
Samsung and Siemens manufacture smart phones, but they are not
\nyet available in Indonesia.<\/p>\n
According to Robby Darmasetiawan, general manager of PT Dian
\nGraha Elektrika -- Siemens' distributor here -- they will soon
\nlaunch their premium series with video streaming feature, SX1 and
\nSX60.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jp13telco-1447899208",
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"sponsor": "Okusi Associates",
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