Telkomsel set to attract customers from remote areas

Leony Aurora, The Jakarta Post/Jakarta

Indonesia's biggest cellular operator, Telkomsel, plans to cover every district across the archipelago next year in a bid to attract more customers, including those in the low-income bracket and in remote areas.

The company had expanded into in every one of Indonesia's 352 regencies and municipalities, president director Bajoe Narbito said recently.

"By the end of this year we will have covered 48 percent of all districts (in the country)," he said. "Next year we will cover the rest -- anywhere where there are people," he added.

There are about 5,054 districts in Indonesia.

The company previously announced that it would invest some Rp 6 trillion (US$661.89 million) in 2005, up from Rp 5 trillion this year. Most of the investment will be spent on infrastructure.

The move into the more remote areas of the country is aimed at boosting customers of Telkomsel's pre-paid services -- Simpati and Kartu As.

"Pre-paid customers are easily lured away by new, more attractive packages," said Bajoe.

Cellular operators are in intense competition nowadays to attract customers from low-income families, who have not been optimally tapped in the past. Excelcomindo a few months back launched Jempol, claimed to be the cheapest of its kind.

Short messaging services between Jempol users cost only Rp 99, and customers can add pulses with as little as Rp 5,000 in their pockets.

As of October this year, Telkomsel had 14.5 million customers, about 50 percent of the total market share. Its pre-paid cards Simpati and Kartu As have 10.8 million and 2.4 million numbers, respectively, in circulation, while the post-paid card Kartu Halo has only 1.3 million customers.

For post-paid card users, Telkomsel plans to offer better services abroad through a joint venture called the Bridge Mobile Alliance, formed with six other top operators in Asia Pacific.

Officially inaugurated last week, Bridge's members include Bharti from India, Globe Telecom (the Philippines), Maxis (Malaysia), Optus Mobile (Australia), SingTel (Singapore), Taiwan Cellular Corporation (Taiwan) and Telkomsel, with a total number of customers reaching 50 million.

"Our customers will be able to walk into any service shop of members of Bridge abroad and buy pulses," said Bajoe. At present, pre-paid card users abroad rely on their families and friends back home to add pulses to their accounts when necessary.

Telkomsel customers in the future will also be able to contact its customer service in Bridge member countries using the same number as in Indonesia. Kartu Halo users, for example, will be able to contact 111 even in India to get their queries answered -- but not free of charge.

The services are expected to be ready by the second quarter of next year.

"Bridge will start operating on Jan. 1, 2005. The first three months will be used to set up the operation and standardize the technology used by each operator to be compatible with one another," said Telkomsel international service manager Rahmat Budiyanto.

Each of the seven operators have deposited US$1 million to a total of $7 million as initial capital for the venture. Every operator holds an equal share of 14.28 percent.