Mobile myths, competition demystified

David O'Brien, Jakarta

Dennis Pratistha has reopened the can of worms I alluded to earlier in the year in his piece of Aug. 11, Mobile phone industry shake-up. A subsequent piece by Jakarta Post staff on Aug. 19 looks at ad spend and claims of healthy competition by the regulator and industry participants.

A review of recently published (as available for publicly held entities) first half 2008 figures makes for interesting reading. XL have managed to push their EBITDA margin up by 10 percent to 45 percent while Telkomsel as industry leader have suffered a fall from 72 percent back to 69 percent in the past year; with Indosat slipping slightly back to 50 percent (see table).[more, thejakartapost]

Indonesia Telecommunications Report Q3 2008 - www.companiesandmarkets.com adds new report.

Competition among mobile operators is intensifying. A number of new entrants to the sector have been jostling for greater market share against the larger established mobile operators, through aggressive advertising campaigns detailing competitive advantages of lowest market prices, best call quality and cheapest deals. The number of mobile subscribers has certainly grown, reaching an estimated 97.4mn at the end of 2007 and above BMI’s original estimate. [more, PR-Inside]

Indonesian high court says Temasek appeal rejected

JAKARTA (AFP) — Indonesia's Supreme Court has rejected an appeal filed by Singapore's state-linked investment firm Temasek Holdings over a ruling that it breached anti-monopoly laws, the court spokesman said Friday.

"Yes, it's true," Djoko Sarwoko, one of the judges who heard the case, told AFP, confirming the ruling. [more, AFP]

News focus: Temasek loses legal battle in RI`s supreme court

Jakarta, (ANTARA News) - After a legal battle for about five months, Singapore`s state-owned investment firm Temasek Holdings Pte Ltd has to accept an unfavorable decision by the Indonesian Supreme Court (MA).

The highest law enforcing body rejected Temasek`s legal review suit against a ruling by Indonesia`s Business Competition Commission (KPPU) that the Singapore company had violated the country`s monopoly and business competition law. [more, antaranews]

CTM, Telkomsel sign joint-venture agreement

Local telecommunications company CTM and Indonesian telecommunications company Telkomsel yesterday signed a joint-venture agreement to mark the launch of a new prepaid calling card which will allow Indonesians in Macau to call family and loved ones for a fraction of the price.
In a ceremony presided over by secretary for transport and public works, Lau Si Io, both sides said that the agreement would bring benefits to the local Indonesian community. [more, macaudailytimes]

Small shareholder wants cut in SingTel's directors' fees

A SMALL-time shareholder with just 190 of the company's shares hit out at what the board of directors was being paid at Singapore Telecommunications' (SingTel) annual general meeting on Friday, before 360 other shareholders and journalists. [more, straitstimes]

Telkomsel Targetkan Mobile Wallet Tumbuh 100%

Telkomsel memproyeksikan dapat menggandakan jumlah pengguna mobile wallet Telkomsel Cash atau T-Cash. Operator tersebut juga tengah mempersiapkan sistem layanan pengiriman uang (remittance) pertama melalui seluler di Indonesia. [more, studiohp]

Indonesian telecoms mull price-fixing appeal

JAKARTA (AFP) — Indonesian telecom firms were mulling appeals Thursday after the competition watchdog found them guilty of price fixing and raking in hundreds of millions of dollars from illegal text message charges.

The Business Competition Supervisory Commission (KPPU) found six telecommunications companies guilty of collusion and slapped five of them with fines worth some 10 million dollars. [more, afp]

Top Indonesian mobile firm in talks with Qtel

SINGAPORE: Indonesia’s top mobile firm, Telekomunikasi Selular (Telkomsel) said yesterday it was in talks with Qatar Telecom to bring its mobile payments business to the Middle East and expects to exceed its forecast of 15% revenue growth this year.
“For the new business, especially the transaction business, we have our co-operation with Qatar Telecom in the Middle East,” Kiskenda Suriahardja, president director of Telkomsel, said on the sidelines of a regional telecoms award ceremony. [more, gulf-times]

Indonesia's Telkom keen on buying SingTel's stake in Telkomsel - report

SINGAPORE (Thomson Financial) - Indonesia's biggest telecom carrier, PT Telekomunikasi Indonesia Tbk (Telkom), is keen on buying back shares in unit Telkomsel from Singapore Telecommunications Ltd. (SingTel) if the stake were to be offered for sale, the Straits Times reported on Friday.

Telkom Chairman Tanri Abeng said Telkom, being the majority owner of Telkomsel, has the first option to take the shares from SingTel, the newspaper said. [more, interactive investor]

INDONESIA: SingTel appeals court ruling

Friday, May 23, 2008. Temasek subsidiary companies, Temasek Holdings, Singapore Telecommunications and Singapore Telecom Mobile, have filed an appeal to the Supreme Court over a lesser court's ruling that found them guilty of antitrust violations. [more, asiamedia]

Indonesia's Telkom Q1 net up 5 pct on mobile users

JAKARTA, May 23 (Reuters) - PT Telekomunikasi Indonesia Tbk TLKM.JK, the country's largest telecoms firm, posted a lower-than-expected 5.4 percent rise in first-quarter net profit, due to strong growth in mobile subscribers. [more, reuters]

Telkomsel Selects Ericsson for Mobile Softswitch Solution

Telekomunikasi Selular Indonesia has selected Ericsson for its mobile softswitch solution, including the new MSC server blade cluster. The solution will provide a common core network platform for both GSM and WCDMA technology.

Under the three-year agreement Ericsson will also provide services including network deployment and integration.

According to Ericsson, its mobile softswitch solution (MSS) will allow Telekomunikasi Selular Indonesia (Telkomsel) to reduce its core network operating expenses. It supports improved call control and network intelligence, enabling a reduction in the number and size of main core network sites. [more, redorbit]

HSPA Mobile Broadband Overtakes Fixed Broadband in Indonesia

The GSM Association (GSMA) announced that the number of mobile broadband (HSPA) connections in Indonesia has surpassed the number of fixed broadband connections. At the end of 2007, 315,000 Indonesians were accessing the Internet via this high-speed mobile technology, while fixed-broadband connections were approximately 300,000. [more, sdaasia)

Indonesia's Indosat FY net profit seen up 28-49 percent on subscriber growth

JAKARTA, Mar. 19, 2008 (Thomson Financial delivered by Newstex) -- Indonesia's second-biggest telecom company PT Indosat (NYSE:IIT) is expected to report next Wednesday a 28-49 percent growth in 2007 net profit largely due to a robust increase in the number of its subscribers, analysts polled by Thomson Financial said. [more, CNNMoney]

Telkomsel to deploy state-of-the art location based services to its customers across Indonesia

Nokia Siemens Networks will enable PT Telekomunikasi Selular Tbk (Telkomsel), the biggest mobile telecommunication provider in Indonesia, to provide innovative value added services for its 50 million active subscribers and thus enhance users’ mobile experience. [more, techwhack]

Telkomsel to deploy state-of-the art location based services to its customers across Indonesia

Nokia Siemens Networks will enable PT Telekomunikasi Selular Tbk (Telkomsel), the biggest mobile telecommunication provider in Indonesia, to provide innovative value added services for its 50 million active subscribers and thus enhance users’ mobile experience. [more, webwire]

BlackBerry gains popularity in Indonesia

Developed by the Canadian company Research In Motion (RIM), BlackBerry has started to gain popularity in Indonesia.

The country's biggest operators, Indosat, Telkomsel and Excelcom, already launched this service.

Indonesia's Indosat plans 1.5 trln rph bonds in H1

JAKARTA, Feb 20 (Reuters) - Indonesia's second-largest mobile phone operator, PT Indosat Tbk, said on Wednesday it plans to raise as much as 1.5 trillion rupiah ($163.8 million) in bonds in the first half to finance its expansion.

Indosat ISAT.JK, around 40 percent owned by Asia Mobile Holdings, said a maximum of 1 trillion rupiah will be through conventional debt while the rest will be in sharia compliant bonds. [more, reuters]

Indonesia Excelcom doubles 2007 net as user numbers grow

JAKARTA, Feb 20 (Reuters) - Indonesia's third-largest mobile phone operator, PT Excelcomindo Pratama Tbk EXCL.JK, said on Wednesday its 2007 net profit more than doubled, driven by strong subscriber growth.

Excelcom's subscriber base jumped 62 percent to 15.5 million, representing around 17 percent market share. [more, reuters]