Telkomsel appoints dealers in Jakarta

JAKARTA (JP): PT Telkomsel, a digital mobile cellular telecommunications operator, signed agreements yesterday with 14 dealers to support its marketing strategy for Global System for Mobile Communications (GSM) telephones in the city.

Telkomsel's director of commerce, Rudiantara, said the appointment was part of the company's preparation for the launching of its GSM business in the city on May 26, the first anniversary of the company.

"We expect each dealer to open at least 15 outlets," Rudi said after signing the agreements.

Through the agents, Jakartans will be able to buy KartuHalo, subscriber identity module (SIM) cards designed by Telkomsel for GSM telephones. The public will also be able to buy any handset from the dealers, who will receive commissions from Telkomsel.

"The commission is attractive. That's why we won't tolerate dealers who sell KartuHalo at prices more expensive than the official price."

Under government regulations, the installation of a GSM telephone costs Rp 390,400 (US$166), which includes a SIM card worth Rp 300,000, a monthly subscriber charge of Rp 50,000 in addition to a value added tax of Rp 5,000, a frequency administration charge of Rp 25,000, a monthly frequency utilization charge of Rp 8,400 and stamp duty of Rp 2,000.

However, many GSM dealers in Jakarta and other big cities charge between Rp 500,000 and Rp 550,000 for GSM installation.

Informed sources said that businesses interested in becoming Telkomsel dealers should allocate Rp 100 million for bank guarantees.

Telkomsel began its trial operation in the capital in March. The digital mobile cellular telephone market in Jakarta is still controlled by PT Satelindo, the first company licensed to run GSM in Indonesia.

Telkomsel expects to sign up 120,000 subscribers this year, 90,000 of which are expected to come from the greater Jakarta area. The company currently has 45,000 subscribers in 128 cities in 12 provinces. The company operates 220 base transceiver stations and plans to increase the number to 562 by the end of this year. (icn)