Lucrative packages available for CDMA users

Sudibyo M. Wiradji, The Jakarta Post, Jakarta

The Code Division Multiple Access (CDMA) technology has started to gain ground in the country's telecommunication market with more and more people switching to the relatively new technology.

The number of subscribers of the CDMA-fixed wireless services has now reached 1.8 million. Although the CDMA market is still dominated by Telkom's Flexi service, the number of subscribers of other CDMA operators has also continued to show a significant increase in the past several months, apparently due to their aggressive sales campaigns.

"More efforts have to be made to further promote the advantage of the CDMA technology to the public. With such efforts, we hope more people will switch to the new technology," said Nadia Mars, vice president of corporate communication of PT Bakrie Telecom, one of the country's CDMA-based phone service operator.

A fixed-wireless service is a phone service that has limited cellular mobility within a designated area, but its rates are quite cheaper compared to the rates of GSM mobile phone operators, or almost equivalent to the rates of the fixed telephone service.

Aside from competitive rates, the CDMA-based phone service also offers other benefits, such as crystal-clear voice quality.

Experts said that there is still huge room for growth in the telecommunication sector in Indonesia where the telephone penetration is still quite low,

At present, only about 8.5 million people have access to fixed-line phones, while about 23 million subscribe to the existing mobile phone services provided by GSM operators. The number of the subscribers of the CDMA-based services which were introduced in Indonesia less than two years ago is around 1.8 million.

New operators of the CDMA-based phone service include PT Bakrie Telecom, with its Esia fixed-wireless access service, Mobile-8 Telecom with its Fren service, PT Indosat with its StarOne service and Mandara Selular Indonesia with its Neo_N service.

Esia has launched aggressive campaigns during the past several months to lure young subscribers.

Following its success with Gile Bener (simply crazy) package, Esia is, for example, launching another package Ngrumpi Abis (gab till you drop) to further win the hearts of young subscribers.

Like Gile Bener package, the latest package also provides unlimited free local calls and Short Message Service (SMS) to fellow Esia subscribers and even to Telkom's Flexi until the end of this year.

Esia subscribers using particular brands of the CDMA handset can also enjoy the package thanks to the company's sales collaboration with several mobile phone vendors, according to PT Bakrie Telecom's retail sales' vice president Charles Sitorus.

"The demand on Esia cards is 40 times more per day thanks to the packages," he said.

Apart from offering packages, the operator also established more phone service outlets in Jakarta and Bandung, West Java. The outlets would serve as a place where the public and subscribers could not only find various Esia products but also convey information and complaints, said PT Bakrie Telecom's corporate communication vice president Nadia Mars.

Bakrie Telecom started to market Esia service in September last year, with Jakarta and Bandung, West Java, as its areas of operation.

Currently, it has 400,000 subscribers and the number is expected to reach 3 million in the next five years, Nadia said.

Like Bakrie Telecom, Mobile-8 Telecom, the provider of Fren fixed-wireless access service, has also launched joint sales campaigns with several handset vendors and financial institutions.

The joint sales campaign which often offers a discount of up to 60 percent when purchasing a CDMA set of certain brands, is quite helpful in attracting new customers.

Such packages are quite effective in attracting subscribers, who are generally still reluctant to take the advantage of the CDMA technology due to the high price of its handsets, according to Mobile-8 Telecom's public relation manager Reita Sitanala.

Mobile-8 Telecom's packages, like Fren Smart Buy, Fren Jumbo Pack and FrenSip have been also designed to help potential Fren subscribers to buy a CDMA handset, she said.

The Smart Buy package is targeted to potential subscribers of the post-paid Fren service. "Under this package, the would-be subscribers interested in buying a CDMA handset are offered 60 percent discount," she added.

Fren Jumbo Pack provides a free CDMA handset for potential Fren subscribers provided that they purchase a pre-paid Fren card.

Mobile-8 Telecom obtained a license to run CDMA-based phone service in 2002 and began its commercial operation last December.

Apart from conducting promotional campaign, Mobile-8 also continues to develop base transceiver stations (BTS) and networks.

"At present the company operates 345 BTS in Java and we plan to build more so that the number of BTS in Java will reach 433 by the end of this year," she added.

No less attractive are packages offered by PT Indosat, provider of StarOne fixed-wireless access service.

One of the ongoing sales programs is called StarOne Makin Berani (bold StarOne) package. The program was launched in October 2004 and will run until December 2004.

The package offers a free voucher valued at Rp 50,000 and 100 free SMS as a bonus to those interested in using StarOne service. It also provides free local calls to fellow StarOne subscribers as long as they make a call between 8 p.m. to 8 a.m.

New subscribers of StarOne post-paid service will not only be exempted from paying a subscription fee for three months but also from paying local calls provided that the calls made to fellow StarOne subscribers were between 8 p.m. and 8 a.m., or on Sundays, according to Devi.

StarOne started operations in August 2003, with Jakarta and Surabaya, East Java, as its current operational areas.

StarOne is targeted to grab between 50,000 and 100,000 subscribers this year. "The availability of CDMA handsets of different brands at relatively affordable prices will contribute to the increase in the number of subscribers," she said, adding that the service quality, infrastructure and large network would also be contributing factors.

Indosat has developed 200 BTS in Jakarta and 90 in Surabaya for its StarOne service.

A plan is also underway by the operator to expand its operational areas to at least 11 cities in the country in the near future.