Komselindo: The cellular expert

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)