Komselindo: The cellular expert
Suppose we combine a strong technical expertise in telecommunications engineering and a long history of being a national telecommunications service provider, what would we get? Probably a synergistic joint venture telecommunications operator like PT Komselindo, the leading AMPS cellular mobile telephone service provider in Indonesia.
Established on January 25, 1995, Komselindo has been providing AMPS cellular telephone services in a variety of areas in Indonesia, including the Greater Jakarta Area, the entire West Java, Aceh, Palembang, Bandar Lampung, Semarang, Solo, Yogyakarta, Surabaya, Malang, Denpasar, Banjarbaru, Banjarmasin, Samarinda, Balikpapan, and the entire island of Sulawesi. Even when enjoying the breathtaking views of the beautiful coral reefs through the glass bottom of a boat off Bunaken, neyou still can talk with someone on the other side of the globe using your AMPS handphone.
Komselindo's reputation as a major cellular phone service provider has been fully recognized. For example, during the upcoming Indonesia Air Show that will start June 22, the company will become the official carrier for cellular phone communication. One thousand lines will be provided initially, with the possibility to increase the number as needs arise.
Where did Komselindo's strong background in telecommunications technology come from? This company is a joint venture between PT Elektrindo Nusantara and PT Telkom. The former has an established history in manufacturing and building telecommunications equipment for domestic use as well as for exports to neighboring Asian countries. It has its own R&D division. In fact, Elektrindo Nusantara started providing the country's first cellular telephone service back in 1991. As business grew rapidly, however, it was felt that a new business organization was required. Hence the joint venture with PT Telkom.
As for PT Telkom itself, no one else in Indonesia could have more experience in providing public telecommunications services. Elektrindo Nusantara owns 65 percent of PT Komselindo, while PT Telkom controls the remaining 35 percent. With both parties contributing their respective forte, it should not be surprising at all that Komselindo's present objective is to achieve the status of "The Cellular Expert".
And for good reasons, too. First, the nationwide market for cellular telephones is still huge and--due to the growing size of our middle class--is still expanding rapidly. According to the April 1996 issue of Mobile Communications Magazine, the total number of subscribers of both digital and analog cellular phones for last year is 187,000, which represents a 80 percent increased from 1994. Yet, it reflects only a 0.09 percent penetration. The domestic trend by no means deviates from the global situation, which shows an average increase of 110 percent for the whole Asia Pacific region. This figure reflects a 0.72 percent penetration.
Second, despite the many misconceptions about the analog cellular system that been circulating, the technology still offers several advantages (See article "Digital vs. Analog: Does it Matter?"). Third, today's customers tend to be more educated. They know what services they require, and they are willing to pay for services with a high degree of flexibility. To them, it doesn't matter whether the cellular phones they use in communicating with their business partners, consultants, or family members are analog-based or otherwise. And, as far as creativity in designing services to be provided to the customers, the sky is the limit. In short, there is still a huge, largely untapped potential for market growth.
"Today we have about 75,000 subscribers and we are sure that the number of our subscribers will grow rapidly because we are going to have several new sites such as Banda Aceh, Kendari, Palu, and Padang in our network later this year," says Ronny K. Harlan, Komselindo's Marketing and Sales Manager. "Also, our subscribers will enjoy our digital services in early 1997. The digital technology called CDMA (Code Division Multiple Access) and its inherent properties provide for the most robust performance of any digital wireless technology over the air. Our subscribers can choose either to have an analog service or a digital service whenever they want," adds Ronny.
Currently, Indonesia has three AMPS operators. Outside PT Komselindo's area of services, PT Telekomindo provides AMPS connections in Kalimantan, Lampung and Bali. PT Metrosel provides services in Central Java, East Java, and all the other areas in the eastern part of Indonesia all the way to Irian Jaya. The total number of subscribers for all three operators is 130,000.
For 1996, Komselindo expects to have in excess of 60,000 subscribers for Jakarta alone. However, obtaining new subscribers is not exactly the most important objective that it is pursuing; maintaining the existing ones is. In order to achieve this particular objective, one of the steps that Komselindo is taking is to ensure the largest coverage with the most bulletproof reliability. These are, in the company's view, what the Cellular Expert must be able to accomplish. (zia)