Fri, 01 Apr 2005

Telkomsel targets 6 million new mobile phone users

The Jakarta Post, Jakarta

In view of the country's current low mobile density, Indonesia's largest cellular firm PT Telkomsel has optimistically set its sights on an additional six million subscribers this year.

"As of this month we have 16 million subscribers and we are aiming at 22 million by the end of this year," Telkomsel's newly appointed president director Kiskenda Suriahardja said on Thursday.

He explained the target was feasible as the country's mobile density had reached only 12 percent -- meaning that there are only around 26 million people out of the total population of 220 million who use cellular phones.

"We seek to expand in areas outside the big cities and add our coverage throughout the country," he said, adding that for areas that have a high concentration of mobile services the company would develop more advanced technology services such as 3G.

The company plans to launch by mid-year the trial of its 3G service, an advanced third generation technology which would enable cellular subscribers to enjoy triple-play technology such as video streaming, video conferencing through cellular phone, in addition to a much faster data transfer.

Cellular phone manufacturers are already racing to release new products compatible with 3G.

"Subscribers who have complied with 3G technology can enjoy the services offered by the technology," Kiskenda said, adding that the company did not set a quantitative target from the trial but would focus on establishing a quality service first with the current infrastructure.

However, since the 3G license it has is for trial only, Telkomsel will wait for a formal operating license and frequency bandwidth to fully operate the 3G technology from the Ministry of Communications.

The government has so far granted PT Natrindo Telepon Seluler/Lippo Telecom and CAC, an affiliate of Thailand's leading cellular operator Telecom Orange Asia, 3G licenses and allocated frequency spectrum in 2003.

However, neither company has started using the technology.

Telkomsel, together with Indosat, jointly shares 83 percent of the total 22.7 million subscribers in the cellular market, followed by PT Excelcomindo Pratama and new-comers PT Bakrie Telecom and PT Mobile-8 Telecom.(003)