Cellular firms boost promotion as competition toughens

Cellular firms boost promotion as competition toughens

Leony Aurora, The Jakarta Post, Jakarta

Telecommunications companies are readying for fiercer competition
in 2005 to attract new customers amid a rapidly growing cellular
sector.

Industry players intend to tackle the booming market by
improving service quality, offering promotional packages and
introducing innovative services.

Indosat cellular marketing director Hasnul Suhaimi said on
Wednesday that, instead of waging a price war, operators would
try and lure customers with attractive offers.

"We will focus on improving our quality, which is good, but
admittedly, not at its best yet," he said on the sidelines of the
launch of BlackBerry, a new telecommunications solution targeting
businesses and executives.

BlackBerry is a business application that provides real-time
delivery of email and data on customers' handsets -- meaning that
delivery occurs the moment email or data reaches a customer
account, with no need for a dial-up connection.

Indosat plans to improve its General Packet Radio Service
(GPRS) in Bali, Batam, East Kalimantan, Java and Medan in the
first quarter of 2005 to synchronize with BlackBerry.

At present, only Greater Jakarta provides services compatible
with the GPRS platform.

"We plan to sign up between 10,000 and 15,000 customers for
this program next year," said Hasnul.

Indosat projects it will have 9.6 million cellular subscribers
by year's end, and aims to attract 3 million to 4 million more
next year.

Separately, Telkomsel marketing and mobile data vice president
Erik Meijer said new target markets had emerged in response to
the tight competition in rates.

"...We'll focus on improving coverage and services, including
the introduction of new innovations," he said on Wednesday. "What
good is a low rate without good coverage?"

Telkomsel, the country's largest cellular operator with over
15 million subscribers, has set a target of 5 million new
subscribers next year.

Cellular operators faced strong competition this year from
fixed wireless systems, such as Telkom Flexi and Esia, which have
restricted coverage areas but charge much lower rates.

Meanwhile, mobile data services -- for example, in polling
customers via cell phones, from the popular Indonesian Idol to
the presidential election -- are also on the up and up, said
Erik. The revenue from this sector had increased by fivefold as
of the beginning of the year, he added.

Also on Wednesday, Telkomsel launched its newest creation, the
Mobile Message Board, which will allow users to conduct their own
polls or share information through preassigned numbers.

Indosat also plans to enhance its mobile signal in Greater
Jakarta within two months and to build between 1,500 and 2,000
base transmission stations next year to expand its coverage
beyond Java.

The company has set a capital expenditure of about US$700
million for 2005, 80 percent of which will be used for its
cellular business.