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)