Competition in cell phone services gets fiercer

Competition in cell phone services gets fiercer

JAKARTA (JP): The competition in cellular telephone services
is getting fiercer, with almost all of the country's Global
System for Mobile (GSM) operators promising not only better
services but more advanced technology.

Julius S. Djohan, the president of PT Excelcomindo Pratama,
said over the weekend that GSM operators had no choice but to
improve services and facilities because tariff competition was
not yet possible.

The country's telephone tariffs are set by the government.

"Fewer out of range spots, good coverage, clear voice, quick
connection and qualified customer care executives are the major
factors to winning the cellular competition in Indonesia," Julius
told The Jakarta Post.

Excelcomindo is the youngest of the three GSM operators in
Indonesia. GSM, the most recent system introduced in the country,
is also operated by PT Telkomsel and PT Satelindo.

Djohan said the recent drop in the prices of cellular handsets
had encouraged more people to subscribe to GSM services.

"Cellular users are now not limited to businessmen, but also
youngsters including students," he said. "But we have to offer
better services to enable us to tap the growing market," he
added.

Excelcomindo, which at present has some 9,000 subscribers, has
introduced a number of features to attract more subscribers. It,
for example, became the first operator to introduce monthly
subscribing fees on all of its offered features.

There are currently some 550,000 cellular phone users in
Indonesia. Around 380,000 of them are GSM subscribers, while the
remainder are users of the Advanced Mobile Phone System run by
three operators and the Nordic Mobile Telephone run by one
provider.

According to Djohan, Excelcomindo, which procures equipment
from Swedish giant LM Ericsson AB and Siemens of Germany, runs
24-hour customer care centers and point of sales to attract
customers.

The company is a joint-venture firm owned by Nynex Corp. of
the United States and PT Telekomindo Prima Bhakti, the major
Indonesian shareholder. Other shareholders of Excelcomindo
include Japanese trading firm Mitsui, the Asian Infrastructure
Fund and several local investors, including PT Santana
Telekomindo, Yayasan Kartika Eka Paksi and Yayasan Tridaya.

Djohan said Excelcomindo, which currently operates in Jakarta,
Bandung in West Java and Surabaya in East Java, will enter
several new areas in 1997.

"We will enter Bali and Lombok, Semarang, Surakarta, Yogya,
Kudus, Tegal, Pekalongan (Central Java) in early 1997. In the mid
half of 1997 we will be in Kediri, Jombang and Jember (East
Java), and in Medan (North Sumatra) in the third quarter," he
said.

Excelcomindo has signed roaming agreements with operators in
Singapore, Hong Kong, Malaysia, the Philippines, Thailand,
Belgium, Germany, Sweden and the Netherlands, allowing its
subscribers to use their cellular phones when visiting the
nations. (icn)