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.