Telkom, Siemens launch fast internet access service

Telkom, Siemens launch fast internet access service

JAKARTA (JP): The country's internet users now have another
option for faster Internet access following the official launch
on Tuesday of a broadband service by state telecommunication
company PT Telkom in cooperation with the Indonesian subsidiary
of telecommunication giant Siemens.

Telkom and PT Siemens Indonesia held a demonstration and
launch of the new service at the Indonesian International
Telecommunication, Media and Information Technology (IITELMIT)
conference and exhibition here.

Siemens Indonesia's managing director for information and
communications Armin Bruck said that both companies had already
begun operating the service commercially in February, after
conducting a three-month trial period from August through October
last year.

"So far, our service can be accessed in 12 locations in
Jakarta, Bekasi, Bogor, and Serang, and, as of today, we already
have over 100 subscribers," he said in a media conference after
the launch.

The multimedia service is operated by Telkom under a revenue
sharing agreement with Siemens.

Another company providing a similar service is PT Broadband
Multimedia, which launched its Kabelvision broadband Internet
service in February this year.

Markus Strohmeier, Telkom's general manager of sales, said the
service will use Siemens' Asymmetric Digital Subscriber Line
(ADSL) technology that is capable of providing high-speed
Internet access of up to 512 Kilobits per second (Kbps), or eight
times faster than a standard Internet connection.

"The market segment for this service is of course different.
We are targeting people that need fast connectivity. Those who
are patient and can afford to wait can use Telkom's dial-up
Internet connection," he said, referring to the TelkomNet Instan
service which can be accessed in 141 cities and regencies.

Strohmeier said interest in the new service had been very high
and that currently there were over 200 customers waiting for the
service to be installed.

"All that without a major marketing program on our part," he
said, adding that Siemens could provide the service for a maximum
of 6,000 customers.

The ADSL technology enables standard copper telephone wires to
provide high-speed Internet without interrupting the telephone
line, Strohmeier explained.

Komara, Telkom's product manager for its multimedia division,
said that subscription to the service involved an activation fee
of Rp 250,000 (about US$21.7) for limited access and Rp 500,000
for unlimited access.

Customers must also pay a monthly fee of between Rp 250,000
and Rp 1.2 million depending on the transmission speed and level
of access, he said.

In addition, a customer should also subscribe to one of the
four Internet Service Providers (ISPs) currently working with
Telkom, including Metronet, CBN, LinkNet and TelkomNet, who will
also charge a fee for their services.

Komara said the cooperation with Siemens is based on a revenue
sharing scheme, under which Telkom's Jakarta regional division
will operate the service for 40 percent of earnings, while
Siemens would receive 60 percent.

"The scheme is fixed for four years, after which the revenue
sharing agreement will be dissolved," he said.

Siemens invested a total of Rp 30 billion in the service,
Komara noted.

Telkom is also cooperating with Lucent Technologies and
Alcatel to provide the same service in other locations.

"Alcatel plans to roll out its service in August, while Lucent
expects to be ready some time in the fourth quarter of this
year," Komara said, adding that both Lucent and Alcatel will
provide services to a maximum of 20,000 subscribers. (tnt)