Net providers upbeat about market growth

Net providers upbeat about market growth

JAKARTA (JP): Local Internet service providers (ISPs) are
expecting better business this year as more personal computer
owners are expected to sign up as subscribers.

The marketing manager of PT Cyberindo Aditama (CBN), Stephanus
Jonatan, said on Monday the company was expecting the number of
its subscribers to double this year to 60,000 from 30,000 early
this year.

"Most Internet users are currently using the service provided
in their offices, but soon many will open their own private
Internet accounts so that they will be able to use the service at
home," he told The Jakarta Post.

He said CBN's subscriber roll grew at least 100 percent per
year since starting commercial operations in Jakarta in early
1996.

Another local ISP, Indosatnet, is also optimistic about
business this year, projecting the number of its subscribers
would reach 75,000 by the end of the year from 45,000 as of
February.

The president of Indosatnet's parent company PT Indosat, Indra
Setiawan, said that like other major ISPs Indosatnet also
recorded good growth.

"The number of Indosatnet's subscribers has increased at least
100 percent per year since it started operation in 1996," he
said.

In order to provide subscribers with faster and better
services, Indra said Indosatnet would increase the bandwidth
capacity from 45 Mbps to 69 Mbps.

"The expansion of the bandwidth capacity will be done in the
middle of this year," he said.

He said Indosatnet would expand its coverage to 20 cities in
the country, including Pekanbaru in Riau, Palembang in South
Sumatra, Cirebon in West Java, Surakarta in Central Java and
Malang in East Java.

Stephanus said most ISPs were focusing their services in
Jakarta because they considered the city the most prospective
market due to its more developed infrastructure.

The Association of Indonesian Internet Service Providers
projected the number of Internet users in Indonesia would
increase from approximately 1 million in 1999 to 1.45 million
this year and 1.98 million next year.

Stephanus said the growth in Internet subscription would be
more rapid if PT Telkom as the sole telephone line provider could
provide infrastructure that better suited requirements for data
communications use without increasing the call charge. (cst)