Ringing in the era of cellular phones

Ringing in the era of cellular phones

The business of cellular telephones in Indonesia has grown
impressively over the past several years. There are now hundreds
of thousands of handphone subscribers in the country, mainly in
big cities, and they are expected to grow to millions in a few
years. Considered a luxury in the past, cellular phones have now
grown to become part of an everyday life for urbanites. The
Jakarta Post 's team of reporters, I. Christianto, Johannes
Simbolon, Meidyatama Suryodiningrat, Dwi Atmanta and Stevie
Emelia, and photographer Arief Suhardiman, have prepared several
articles and photos related to this new lifestyle on this page,
page 11 and page 13.

JAKARTA (JP): In the not too distant past, only executives or
businesspeople used cellular telephones.

Today, more people are seen holding cellular phones. You can
spot youngsters, students, and even baby sitters pushing baby
carriages through some malls, carrying the phones.

The trend has changed. Cellular phones in Indonesia have
become increasingly popular, and people from various fields and
professions are using them.

There was a time when cellular phones, which are locally known
as handphones, were considered luxury goods that only the haves
could afford. Cellular phones have now become consumer goods
rather than status symbols or luxury goods.

When cellular phones first entered Indonesia in the 1980s,
people spent between Rp 18 million (US$7,679) and Rp 14 million
to get one. The first cellular telephone provider was PT Era
Mobitel with its Nordic Mobile Telecommunication system.

In 1990, three local companies, in cooperation with overseas
investors, launched the United States-based Advanced Mobile
Telephone Service. It was much cheaper than the Nordic Mobile
Telecommunication system, but many Indonesians still could not
afford the Rp 10 million to 13 million price tag.

People cheered when PT Satelindo, a joint-venture
telecommunications operator, launched in Jakarta in 1994 the
Global System for Mobile communication (GSM), which was developed
in Europe. This system is currently the most favored.

Three months later the government granted PT Telkomsel a
permit to operate a GSM system. The company started its
operations in Sumatra and created competition in the cellular-
phone market in Jakarta. Earlier this month, a third GSM
operator, PT Excelcomindo, launched its services in the city.

Thanks to the elimination of import duty, cellular phones are
now available at prices starting from less than Rp 800,000.

Obviously, cellular-phone agents enjoy lucrative business.
Kusuma Widjaja of PT Wiriasih Sambara, said that every day, an
average of 20 Motorola Startec cellular phones, 50 Ericsson GF388
cellular phones, 50 Nokia cellular phones and 30 Motorola 8700s
cellular phones are sold in the city.

"Recently, some agents in Jakarta even lacked of Motorola
Startec due to high demand," she said.

Businesspeople also run handphone rental services, with
foreign visitors as the main target.

Arnaud Brandt of PhoneRent, a Jakarta-based GSM rental
service, said that since the business started last year, about 40
customers rent handphones from his office here. An average of 12
people rent handphones from his Bali office.

The daily rental fee is about $25 with a $200 deposit
required.

Users

Who are the users of the 450,000 cellular phones in Indonesia,
about 60 percent of whom are GSM subscribers?

Several agents at the Mangga Dua and Hayam Wuruk commercial
districts of the city said that most of the buyers are young
professionals.

"They are under 30 years old. They are looking for the best,
meaning they will pay for the most expensive ones," said Frida
Tanuwijaya, an agent at Hayam Wuruk.

Adi R. Adiwoso, a telecommunications expert and top executive
of PT Asia Cellular Satellite System, agreed. "Actually, people
in Asia are looking for prestige," he said.

"Just look at the many international high-class boutiques in
various shopping districts in Jakarta, Hong Kong, Singapore and
elsewhere. They look for the best and most expensive ones. It's
the same in the cellular business. There are people who look for
the best and most expensive ones," he said.

Adiwoso said telecommunications has become a real need.

"We feel uncomfortable if we forget to take our cellular
phones with us. We are accustomed to being accessible anytime,
anywhere," he said.

Telkomsel's president, Koesmarihati Sugondo, also said
professionals under 30 years old are the potential users.

"They are already established both at work and in society. We
focus on them as potential users," she said.

Koesmarihati projected that there will be 615,000 cellular
phone users in Indonesia by the end of this year. "The growth is
fascinating," she said.

There were just 21,031 users in 1990; 24,528 in 1991; 35,548
in 1992; 53,546 in 1993; 78,024 in 1994; and 235,000 in 1995.

Telkomsel now claims to have some 135,000 subscribers,
Satelindo 200,000 and Excelcomindo expects to gain 30,000 by the
end of this year.

She said that cellular phone penetration per 100 people in
Indonesia also grew significantly from 0.12 in 1995 to 0.31 this
year.

In comparison, 25 out of every 100 Australians have cell
phones, while in Malaysia, the figure almost reaches 8 percent of
the population.

Function

Why do people want to use cellular telephones? Most users said
daily activities command that they be mobile but reachable at the
same time.

Kartono Mohammad, former chairman of the Indonesian Medical
Association and editor in chief of Medika magazine, said cellular
phones help him communicate with his office.

"I spend most of my time outside my office and this equipment
makes it easier for my office to contact me, and for me to
contact them anytime and anywhere," he said.

Kartono once had an unpleasant experience with his cellular
phone. The telecommunications company at one time charged him
three times his usual telephone bill. Kartono later found out
that his cellular phone number had been duplicated.

Susanna, a young executive at a travel agent, said she bought
a cellular phone so that her clients could easily contact her.

"It helps my business. I did not buy this because I was a
showoff but because I needed it," she said.

She acknowledged the unpleasantness of a hefty telephone bill
because of airtime charges of Rp 275 per minute and a monthly
subscription of Rp 50,000, which are higher than conventional
telephones.

Still, it's now the era of cellular phones.

With the planned Personal Handy-phone system and the Digital
Cordless System to be adapted in 1997, competition among
operators will be even fiercer. Hopefully, users will enjoy the
result of the battle, namely cheaper monthly subscription and
airtime charges. (team)