Fixed line telecommunications industry in Indonesia.Current Issue
From 1961 until several years ago, operation of telecommunication telecommunication
Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. service in Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. was monopolized by state companies because of its strategic role in controlling flows of information and communications.
However, with the changing condition in the country especially in economy and fast growing information industry in the world, demand for telecommunication service is stronger that the state companies alone could not keep pace with the demand.
In 1989, when a new law on telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. No. 3/1989 was made effective replacing the Law No. 5/1964, the condition was wide open for the private sector to play important role in the telecommunication service.
Currently telecommunication industry in Indonesia has become part of global industry as the service is not only controlled by the Indonesian private sector but also foreign investors. In fact foreign investors have almost dominated telecommunication industry in Indonesia. Some have even seen that monopoly has been in the hand of foreign investors.
Foreign control of the majority stake in major telecommunications companies in the country especially in mobile telecommunication service has triggered pros and cons because of the strategic role of the industry in controlling flows of information. Many fear that country could not safely guarantee its sovereignty sovereignty, supreme authority in a political community. The concept of sovereignty has had a long history of development, and it may be said that every political theorist since Plato has dealt with the notion in some manner, although not always explicitly. if it does not fully control the flow of information.
Meanwhile the expansion of fixed wire line telephone networks has been sluggish with the declining demand for that service. The sluggish growth has drawn criticism from the House of Representatives against PT Telkom Telkom may refer to:
A higher level of technology to increase the capacity of fixed wire line will be needed as it has been far left behind by fixed wireless telephone. The facility of fixed wireless telephone is easily available. The procedure is much simpler than the procedure to secure fixed cable telephone facility. Fixed wire line, however, is still vital for the business and household sectors.
Characteristics of telecommunication industry
Telecommunications industry is very global in nature both geographically, and in products and uses that development of the industry in any part of the world will have its effect on global economic development Expansion of telecommunication industry is not restricted by any borders between countries as it requires international integration.
In Indonesia, telecommunication is also a vital industry in boosting economic development, not only because of the material value of the industry but more by the service value or its role in facilitating development of other industrial sectors. The Indonesian government has continued to update its regulation on telecommunication industry to adjust to the conditions of the fast growing industry.
With the fast expansion of telecommunication service both fixed and cellular services large capacity and integrated backbone networks become vital to guarantee high quality, safe and economical communications. In addition, development of main networks/backbone could support the program to create equitable equitable adj. 1) just, based on fairness and not legal technicalities. 2) refers to positive remedies (orders to do something, not money damages) employed by the courts to solve disputes or give relief. (See: equity)
EQUITABLE. distribution of economic development in areas so far left behind such as eastern part of the country.
Currently, the main telecommunication networks in Indonesia consist of transmission system of terrestrial Dealing with the earth. See terrestrial link. micro waves, optic cable, submarine submarine, naval craft capable of operating for an extended period of time underwater. Submarines are almost always warships, although a few are used for scientific or business purposes (see also submersible). cables and satellite transmission connecting trunk A communications channel between two points. It generally refers to a high-bandwidth, fiber-optic line between telephone switching centers (central offices). Telephone "trunks" handle thousands of simultaneous voice and data signals, whereas telephone "lines" are the wires from the call centrals, which constitute secondary and tertiary tertiary (tûr`shēârē), in the Roman Catholic Church, member of a third order. The third orders are chiefly supplements of the friars—Franciscans (the most numerous), Dominicans, and Carmelites. telephone centrals in Indonesia. See the following table.
Structure of telecommunications service In telecommunication, the term telecommunications service has the following meanings:
1. Any service provided by a telecommunication provider.
The structure of telecommunication service in Indonesia is formed by development of products and demand for telecommunication service to follow development of technology in the world.
Cellular telecommunications are needed more than fixed telephone service because of the high mobility. In addition, telecommunication equipment is used not only for voice communications but also visual communications.
Telecommunication service of fixed telephone
Fixed telecommunication services in Indonesia include fixed wire line telephone and fixed wireless telephone.
Telkom is the largest operator of cable fixed telephones. Other operator PT Batam The Batam island in the Riau Islands Province of Indonesia, known for a free trade zone as a part of the Sijori Growth Triangle, is located 20 km (12.5 miles) off Singapore's south coast. Bintan Bintan Island or Negeri Segantang Lada is an island of 1,866 square kilometers, and is part of the Riau Islands province of Indonesia. The capital of Bintan is the southwestern city of Tanjung Pinang. Telecom provides only limited telecommunication service for the islands of Batam and Bintan in the special economic zone.
After the implementation of the telecommunication law on Sept. 8, 2000 abolishing monopoly in the telecommunication industry in Indonesia, liberalization lib·er·al·ize
v. lib·er·al·ized, lib·er·al·iz·ing, lib·er·al·iz·es
To make liberal or more liberal: "Our standards of private conduct have been greatly liberalized . . . began in local fixed telephone marked with granting of fixed wireless telephone license to a number of operators including Indosat PT Indosat Tbk (NYSE: IIT) is an Indonesian telecommunications company. It was established in 1967 as a foreign investment company. It is the second largest provider of wireless services in Indonesia through its three brands, Matrix, Mentari, and IM-3. in 2002 and Bakrie Telecom in 2004.
Products of fixed wireless telephone include Flexi of Telkom, Esia of Bakrie Telecom and Star One of Indosat.
Capacity of telecommunication service industry
The capacity of telecommunication service is reflected in a number of factors which show the expansion of the industry as such as:
1. Installed line
2. line in services
Installed line is complete line fully built to the distribution point and ready to be connected with subscribers.
Installed lines in Indonesia began to grow significantly in 2004 when the lines rose in number to 11,912,708 units from 9,558,752 units in 2003. In the following years the increase was sharp marked with the expansion of fixed wireless telephone service in Indonesia.
Line in services
Line in service is a line that already turns out earning connected with subscribers not including cellular phone subscribers.
Line in service has continued to grow sharply in number from year to year. In 2002, the number of lines in service totaled 8,400,662 units, up again to 9,558,752 units in 2003 and to 15,717,300 units in 2006.
Number of fixed line subscribers
The number of fixed lines in Indonesia is still dominated by fixed wire line telephone although fixed wireless telephone is growing faster.
In 2004, the number of new fixed wire line telephone was 345,022 line units or an increase of 4.2% from the previous year.
In 2005 and 2006, the number of new fixed lines declined. In 2005, there were only 126,781 new lines or an increase of only 1.5% and in 2006, the number of new lines was 23,080 units or an increase of only 0.3%.
The sluggish growth of new fixed wire lines came with fast growing interest in fixed wireless telephones. The number of fixed wireless telephones grew fast since 2004 with the operation of Telkom's Flexi, Indosat's StarOne and Bakrier's Esia based on CDMA (Code Division Multiple Access) A method for transmitting simultaneous signals over a shared portion of the spectrum. The foremost application of CDMA is the digital cellular phone technology from QUALCOMM that operates in the 800 MHz band and 1.9 GHz PCS band. .
Value of the sales of fixed line services
The value of fixed lines services has continued to increase despite a decline in the sales value of fixed cable telephone service. The increase is attributable to fast growth of demand for fixed wireless telephone services.
In 2004, sales of fixed wireless telephone services were valued at Rp 385.029 billion but the value leapfrogged in the following years to reach Rp 949.255 billion in 2005 and to Rp 2.037 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time.
(mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed.
In the USA and Canada, 10^12. in 2006.
Meanwhile sales of fixed cable telephone service fell from year to year as shown in the following table.
Operators and owners
Telkom is a publicly listed company with investing public holding part of its shares. However, the majority or 51.19% of its shares are still controlled by the government.
Indosat, which was formerly partly owned by Telkom is now the biggest rival of the state-owned company. Telkom quit as shareholder of Indosat in compliance with the government regulation banning monopoly. Currently the government owns 14.38% of Indosat and Singapore Singapore (sĭng`gəpôr, sĭng`ə–, sĭng'gəpôr`), officially Republic of Singapore, republic (2005 est. pop. 4,426,000), 240 sq mi (625 sq km). Technologies Telemedia Telemedia was a Canadian media company, which had holdings in radio, television and magazine publishing.
The company was launched in 1968 by Philippe de Gaspé Beaubien. owns 41.60% and the public 44.56%.
Bakrie Telecom is another competitor in fixed wireless telephone business. It is the only one without government stake as it was established when the liberalization policy has come into effect.
PT Bakrie & Brothers Tbk TBK - Tool Builder Kit is the majority shareholder of Bakrie Telecom, holding 50.25% its shares with CMA CMA - Concert Multithread Architecture from DEC. Fund Management Ltd having 15.08%, PT Bakrie Communications 3.17 % and Richweb Investments Ltd 2.08% and the public 29.42%.
Fixed wire line service industry
Demand for fixed cable telephone has declined partly because it is easier to secure the facility for fixed wireless telephone. In addition the pulse tariff tariff, tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation's revenue but to protect domestic is the same between fixed wire line and fixed wireless telephones.
Also, Telkom as the largest operator of fixed telecommunication service now focuses more on promoting the use of its fixed wireless telephone products as investment in fixed wire line is still more expensive--around US$ 600-US$ 700 per line unit as against US$ 150-US$ 200 per line unit of fixed wireless telephone. In addition the time needed to install fixed wireless telephone infrastructure is much shorter.
Operation of Telecommunication Service through joint operation (KSO KSO Kunstsecundair Onderwijs (Dutch)
KSO Knoxville Symphony Orchestra
KSO Kensington Symphony Orchestra (London, England)
KSO Kishwaukee Symphony Orchestra (Dekalb, IL) ) scheme
When PT Telkom still held the monopoly in fixed telecommunication service, it offered joint operation (KSO) scheme to attract investors. KSO was at that time the only way for the private sector getting involved in fixed telecommunication service industry in Indonesia.
When the monetary crisis jolted jolt
v. jolt·ed, jolt·ing, jolts
1. To move or dislodge with a sudden, hard blow; strike heavily or jarringly: the country in 1997/1998, many KSO projects were shelved or suspended sus·pend
v. sus·pend·ed, sus·pend·ing, sus·pends
1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. . When the deregulation Deregulation
The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.
Traditional areas that have been deregulated are the telephone and airline industries. was launched on telecommunication service sector, the system was no longer used but projects already started were continued.
Among the KSO scheme still effective is held by PT Bukaka Sing Tel International to build fixed lines in eastern part of the country. A number of other KSO projects have been taken over by Telkom because of dispute in the implementation with the contractors.
On Oct. 19, 2006, Telkom revised the agreement with Bukaka Singtel International (BSI BSI - British Standards Institute ), on the KSO contract to build fixed lines in Regional VII. Under the new KSO agreement, Telkom make decision on finance and business and has the right based on policy and cost to build new telecommunication facility in that region.
Fixed wireless telephone service industry
Operators of fixed wireless telephone services
The country has three operators of fixed wireless telephone service--Telkom, Indosat and Bakrie Telecom. The three operators use Code Division Multiple Access (CDMA) 2000 1x technology for fixed wireless telephone service.
CDMA 2000 1x is a technology of broadband wide spectrum networks using compression technique and data package technology which is more efficient than GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. technology.
The advantage allows the operators using CDMA technology to keep lower operating costs operating costs npl → gastos mpl operacionales .
Telecommunications networks of fixed wireless telephone
Fixed wireless telephone uses integrated telecommunication networks allowing connection with other communication sets.
First connection with signals sent by telephone is received by BTS BTS - Bug Tracking System which has transmitter and receiver. The signal is received and then transmitted to mobile switching centre (MSC (1) (MSC.Software Corporation, Santa Ana, CA, www.mscsoftware.com) Founded in 1963 by Richard H. MacNeal and Robert G. Schwendler, MSC is the world's largest provider of mechanical computer aided engineering (MCAE) strategies, simulation software and services. ) to be sent to the base station controller (BSC (Binary Synchronous Communications) See bisync. ) and then to telephone central.
The number of BTS units and other telecommunication equipment will determine the coverage of the telecommunication system.
Telkom has the largest telecommunication networks compared to those of Indosat and Bakrie.
Number of fixed wireless telephone subscribers
Then number of fixed wireless telephone subscribers grew fast from 1,673,781 in 2004 to 4,819,762 in 2005. Pre-paid Telkom Flexi contributed 3,241,000 subscribers to the total number in 2005, up from 745,000 in the previous year. In 2006, the number of Telkom Flexi subscribers grew further but not as fast as in 2005, but in the same year, pre-paid Esia subscribers increased considerably to 1,414,920 from 351,826 in 2005.
Bakrie Telecom seeks to attract attention of subscribers to the length of time of conversation as the yardstick for saving pulse where it has an advantage over its rivals.
Bakrie Telecom has an opportunity to attract more subscribers in the coming years as by December December: see month. , 2006 it received the license to expand its coverage nationwide. Previously it had coverage limited only to Jakarta Jakarta or Djakarta (both: jəkär`tə, jäkär`tä), city and special district (1990 pop. 8,227,746), capital and largest city of Indonesia, NW Java, at the mouth of the canalized Ciliwung River, on Jakarta , West Java and Banten For the Banten meteorite of 1933, see .
For the sultanate, see .
For the city and harbor, see .
Banten is a province of Indonesia, located at the western end of Java Island. Banten has an area of 9,160.7 km² and population of 9,083,114 (2005). .
The government regulates and control the operation of telecommunication service industry. The legal basis for the regulation and control include the telecommunication law, government regulation and ministerial Done under the direction of a supervisor; not involving discretion or policymaking.
Ministerial describes an act or a function that conforms to an instruction or a prescribed procedure. It connotes obedience. decisions issued from time to time.
The Telecommunications Law No. 36 in 1999 is the main guideline guideline Medtalk A series of recommendations by a body of experts in a particular discipline. See Cancer screening guidelines, Cardiac profile guidelines, Gatekeeper guidelines, Harvard guidelines, Transfusion guidelines. in the reformation Reformation, religious revolution that took place in Western Europe in the 16th cent. It arose from objections to doctrines and practices in the medieval church (see Roman Catholic Church) and ultimately led to the freedom of dissent (see Protestantism). of telecommunication service industry in Indonesia, on which government regulations, ministerial decisions and decisions of the post and telecommunication director general on telecommunication service industry are based.
The Telecommunications Law annulled the concept of executive body ending the monopoly in the operation of long distance call service (SLJJ) held by PT Telkom and International direct dial (SLI (Scalable Link Interface) A multi-GPU interface from NVIDIA for connecting two or four NVIDIA display adapters together for faster graphics rendering on one monitor or two monitors. ) service held by Indosat.
The abolition The destruction, annihilation, abrogation, or extinguishment of anything, but especially things of a permanent nature—such as institutions, usages, or customs, as in the abolition of Slavery.
In U.S. of the executive body, the telecommunications law divides telecommunication service providers into three categories:
1. Telecommunications network A telecommunications network is a of telecommunications links and nodes arranged so that messages may be passed from one part of the network to another over multiple links and through various nodes. providers
2. Telecommunication service providers
3. Special telecommunications providers
Providers of telecommunications networks are licensed to own and or operate telecommunications networks.
Providers of telecommunications service are licensed to provider service by leasing network capacity from networks providers.
Providers of special telecommunications service are licensed to provide private telecommunication service for purpose related to broadcasting and national security interest.
Telecommunication Regulatory Body (BRTI BRTI Badan Regulasi Telekomunikasi Indonesia (Indonesia Telecommunication Regulatory Agency) )
Based on a decision of the communication and information minister No. 25/2005, BRTI is the executive agency for the telecommunication law having the authority to monitor and control the operation of the telecommunication sector. BRTI is made up of officials of the directorate general of post and telecommunications and the Telecommunication Regulatory Committee.
Universal Service Obligation (USO USO: see United Service Organizations.
(UNIX Software Operation) AT&T's Unix division before it turned into USL. See Unix. )
Base don the Telecommunications Law, all operators of telecommunications networks and service providers are bound by USO requiring them to contribute to providing universal telecommunications facility In telecommunication, the term facility has the following meanings:
1. A fixed, mobile, or transportable structure, including (a) all installed electrical and electronic wiring, cabling, and equipment and (b) all supporting structures, such as utility, ground network, and infrastructure or other forms of compensation.
On September September: see month. 3, 2003, the post and telecommunication director general issued a statement that telecommunications operators in Indonesia are required to contribute 0.75% of their gross income to development of USO.
On March 11, 2004, the communications minister issued a decision No.34/2004 saying USO facility must meet the minimum requirements that:
1. Facility must meet the basic telephone standards including facsimile and internet services.
2. Facility must provide public basic telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. services with access to domestic long distance, international and mobile telephone services.
3. Facility must provide telecommunications services that could transmit and receive data.
4. Facility must be able to be accessed for emergency services emergency services Emergency care '…services …necessary to prevent death or serious impairment of health and, because of the danger to life or health, require the use of the most accessible hospital available and equipped to furnish those services' .
5. Facility must use equipment certified See certification. by the post and telecommunication directorate general.
On September 30, 2005, the communications and information minister issued a regulation No. 15/2005 determining the USO contribution at 0.75% of gross income to be paid quarterly or twice a year or annually not later than March 31 in the following year.
In September, 2007, it was planned to start construction of USO facility in 11 blocks in 18,000 villages throughout Indonesia with 27,713 line units.
Based on the plan of the post and telecommunications directorate general development of telecommunications in rural areas with the USO program USO will be expanded every year.
Tariff of fixed cable telephone line unit
The tariffs This is a list of tariffs and trade legislation:
Telkom sets the same tariff for local telephone, both for a distance of 0-20 km and for a distance of more than 20 km, but the tariffs are different by the pulse duration In radar, measurement of pulse transmission time in microseconds; that is, the time the radar's transmitter is energized during each cycle. Also called pulse length and pulse width. . For a distance of 0-20 km during non busy hours the pulse duration is 3 minutes and in busy hours the pulse duration is 2 minutes.
Similarly the pulse duration is 2 minutes for longer distance during non busy hour but only 1.5 minutes during busy hours.
Paid up Tariff of fixed wireless telephone
The number of fixed wireless telephone subscribers has continued to increase in the past several years encouraging operators to improve their competitiveness to take advantage of the growing marketing. New consumers tend to choose wireless than cable fixed telephones as one can secure wireless facility in a much simpler way while the pulse cost and features are almost the same. Both can be used for facsimile and internet services, etc.
The post paid tariffs of fixed wireless telephone are tightly competitive at present. The lowest tariff for local service is Rp 19 per minute by Star One.
The tariff for domestic long distance calls among flexi users is much higher than rival brands namely Rp 900 per minute as against Star One's Rp16 per minute and Esia's Rp 50 per minutes for among the brand users respectively.
In the tariff for connection to Public switch telephone network (PTSN PTSN Public Telephone Switched Network ) or other operators, Flexi is the lowest at Rp 150 per minute as against Star One's Rp 260 and Esia's Rp 250 per minute. Each operator sets relatively the same tariff for connection to cellular phones. See the following table.
Pre-paid tariff of fixed wireless telephone
The pre-paid tariff and the post tariff of fixed wireless telephone are almost the same. Difference is only found in certain services.
Esia sets different tariffs for post and pre paid service among its subscribers for local calls. The post-paid tariff set by Esia for long distance call is around Rp50 per minute and the prepaid pre·pay
tr.v. pre·paid, pre·pay·ing, pre·pays
To pay or pay for beforehand.
pre·payment n. tariff is around Rp250-Rp1,000 per minute. However, in general the pre-paid tariff of Esia is the same as its post paid tariff.
Similarly, Star One sets almost the same tariff for both pre-paid and post paid services.
Flexi sets almost the same tariff as set by Asia such as for local calls and long distance calls, local service to PTSN and local cellular service.
Tariff SLI (international call)
After receiving commercial license to provide SLI service on May 13, 2004, Telkom began to provide SLI service on June 7, 2004. The SLI tariff is set by the provider on maximum limit set by the government.
Telkom divides operation areas in the world into six as reference in setting SLI tariff namely Africa, American and Caribbean countries, Asia and Oceania, Europe Europe (yr`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and Middle East.
Meanwhile, Indosat puts certain countries into seven groups with different SLI tariffs including Austria Austria (ô`strēə), Ger. Österreich [eastern march], officially Republic of Austria, federal republic (2005 est. pop. 8,185,000), 32,374 sq mi (83,849 sq km), central Europe. , Belgium Belgium (bĕl`jəm), Du. België, Fr. La Belgique, officially Kingdom of Belgium, constitutional kingdom (2005 est. pop. 10,364,000), 11,781 sq mi (30,513 sq km), NW Europe. , China, Denmark, France, Germane, Italy, the Netherlands, Norway, Spain, Sweden and Switzerland as group with the highest SLI tariff of Rp12,840 per minutes.
Brunei and Macao belong to group set by Indosat with the lowest SLI tariff of Rp 5,880 per minutes.
Bakrie Telecom with its Esia began to introduce SLI service in February, 2005 with low introductory tariff of Rp888 per minute, for certain countries in Europe, Asia and America.
Early March, 2005, a program of very low tariff of SLI 1188, was offered with a tariff of Rp 1,188 per minute effective from March to December, 2005.
Currently the Esia's SLI tariff is Rp 1,500 per minute for almost all countries of destination in the country.
Feature technology in fixed wireless telephone has grown fast. The latest feature introduced by producers of fixed wireless telephones is internet connection facility that has succeeded in attracting subscribers making mobile fixed wireless telephone service gain in competition facing fixed cable telephone service.
Income from fixed wireless telephone service increasing
A strong growth has been recorded from year to year for fixed wireless telephone both in the number of subscribers and income.
Income from fixed wireless telephone service industry in 2005 shot up 146.5% from Rp 385.029 billion in 2004 to Rp 949.255 billion. In 2006, the income surged again by 109% to Rp 2.037.661 billion.
Flexi of PT Telkom contributed the largest portion to the total income from fixed wireless telephone services. Flex A development system for Flash-based applications from Adobe. Introduced in 2004 as a J2EE application, Flex compiles ActionScript code and XML-based user interface descriptions (MXML) into binary Flash files (SWF files). contributed Rp 1,058.4 billion in 2006. Esia of the Bakrie Telecom grew fast. Esia with 1,547,557 subscribers contributed Rp829.361 billion in the same year.
Star One of Indosat also showed significant increase in the number of its subscribers and contribution to the total income from fixed wireless telephone services.
Average Revenue Per User (ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. )
ARPU, which is the average revenue from each users of telephone in certain period, serves as indicator in evaluating development of productivity of the users of telecommunications service.
ARPU from fixed wireless telephone service is calculated by dividing total income from the subscribers in certain period by the average number of subscribers in the same period not including income from cellular phone service, income in connection fee and interconnection fee and from international roaming The ability to use a communications device such as a cellphone or PDA and be able to move from one cell or access point to another without losing the connection. .
In 2006, ARPU of large operator Flexi rose from Rp 123,000 in 2005 to Rp 135,000 in 2006 for post paid service. Pre paid ARPU grew but not as fast as post paid service as many pre paid subscriber of Flexi use their telephone only for co-subscribers of Flexi and for SMS (1) (Storage Management System) Software used to routinely back up and archive files. See HSM.
(2) (Systems Management Server) Systems management software from Microsoft that runs on Windows NT Server. service.
The increase in ARPU income is faster than the increase in the number of ARPU subscribers that the ratio of income to number of subscribers increased resulting in an increase in ARPU.
On the contrary, Esia's ARPU has declined with the fast growth of the number of its subscribers and an increase in calla among its subscribers.
Expansion and new investment
Operators of fixed line services have increased investment to expand their capacity.
Telkom made new investment in December, 2006 to increase its backbone capacity in several areas, expand its optic fiber networks and internet protocol See Internet and TCP/IP.
(networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. (IP) based networks, etc.
Indosat carried out expansion of Star One networks in 18 cities in Indonesia This is a list of cities in Indonesia, by major island or region: Java and Bali
With the completion of the process of migration of the frequency of Star One from 1.900 Nhz to 800 Mhz in mid 2007 and addition of service access and the settlement of problem in interconnections with Telkom, Indosat targets to chalk up chalk
1. A soft compact calcite, CaCO3, with varying amounts of silica, quartz, feldspar, or other mineral impurities, generally gray-white or yellow-white and derived chiefly from fossil seashells.
a. an increase of 600,000 in the number of its subscribers this year.
Meanwhile, Bakrie Telecom carried out expansion of its Esia networks in 17 cities in Indonesia with a target to have 3.6 million subscribers in 2007. Bakrie Telecom used a five-year loan of US$ 145 million from a foreign syndicate Syndicate
organized crime unit throughout major cities of the United States. [Am. Hist.: NCE, 2018]
See : Gangsterism of financers.
Migration of frequency of fixed wireless telephones to be effective as from Dec. 31, 2007
Based on a regulation of the minister of communications and information No. 01/PER/M.Kominfo/1/2006 on January 13, 2006, all fixed wireless telephone service providers are operated only to use the frequency of 800 Mhz, as the frequency of 1.900 Mhz, which was previously used by all providers of fixed wireless telephone services will be used for 3G networks.
Migration of frequency was ruled by the government to meet the international standard of he industry and in line with a recommendation of the International Telecommunications Union-Radio Communication Sector(ITU-R ITU-R ITU Radiocommunication Sector ).
As a result of the migration, all operators of fixed wireless telephone service have to make adjustments and expand networks and make registration of subscribers and some of their subscribers use single frequency handsets.
Telkom is now preparing development of new networks and replacement of around 400,000 Flexi handsets for subscribers in Jakarta, Banten and West Java which use handsets with frequency of 1.900 Mhz, as on Dec. 31, 2007 there will be cut off in Flexi service in 1.900 Mhz.
Meanwhile, Indosat is still studying option for the migration of the frequency by using BTS CDMA networks of other operators or by replacing radio frequency in existing Base Transceiver Station Base Transceiver Station (BTS) is the equipment which facilitates the wireless communication between user equipments (UE) and the network. UEs are devices like mobile phones (handsets), WLL phones, computers with wireless internet connectivity, WiFi and WiMAX gadgets etc. (BTS).
Prospects and Conclusion
* Infrastructure networks constitute important factor determining the smoothness of development of installed line units, paid connection and increase in the number of subscribers.
* The number of fixed wire line telephone subscribers has tended to remain stagnant stagnant /stag·nant/ (stag´nant)
1. motionless; not flowing or moving.
2. inactive; not developing or progressing. because of tight competition especially facing fixed wireless telephone, which has growing capacity in voice and data and internet communications. In addition, it is much easier to secure the facility of fixed wireless telephone not to mention in mobility, which fixed cable telephone could not match.
* The prospects of expanding telecommunications industry in Indonesia have attracted foreign investors. Apart from the fact that the market potential is still widely open or the largest in this region, the characteristics of consumers in Indonesia, which tend to follow new technology, has become a major factor for foreign investors to do business in this sector in Indonesia.
* The fact that foreign investors have gained domination domination
the relationship between animals and humans in which little consideration is given to the rights of the animals. The prevailing sentiment is one of proprietary domination. of business in telecommunications service in the country also indicate the industry has great attraction.
* Liberalization by the Indonesian government ending monopoly of the industry by the government has accelerated development of fixed wireless telephone service industry because of the need for cheap and mobile with complete features that could be met by fixed wireless telephone.
* The prospects of fixed wireless telephone service are still encouraging as the number of its subscribers is still much smaller than the subscribers of cellular phone service. Fixed wireless telephone service is expected to gain in competition facing cellular phone service in the future.
Table-1 Telecommunication infrastructure in Indonesia Infrastructure Description Main transmission Constitutes networks providing connection networks (backbone) between one long distance telephone central (secondary and tertiary centrals) and another through: --Terrestrial microwave transmission --Optic fiber cable transmission --Submarine cable transmission --Satellite transmission Networks of fixe wire line Networks of subscriber's equipment to telephone local telephone central through connecting equipment (outside plant) Networks of fixed Networks, which provide connection between wireless telephone subscribers' equipment and local telephone central through Base transceiver station(BTS), and then through Mobile switching centre (MSC) connected to Base station sub system(BSS), and finally to telephone central. Networks Networks, which provide connection between telephone mobile handset and telephone central using integrated dual band (single integrated dual band network), which consists of --Base transceiver station (BTS) --Digital switch centre (DSC) --Transmission connecting DSC with base station controller and telephone central Networks Networks which transports data for use in Internet internet dial up service, broad tape, Source: VoIP and Virtual private network (VPN) Source: Telkom/Indosat Table-2 Structure of telecommunication service in Indonesia Types of Types of service/ Telecommu- telecommunications nications technology Operator Fixed line Fixed wire line (local) Telkom telephone Batam Bintan Telecom Fixed wireless (local) Telkom Indosat Bakrie Telecom SLJJ (Long distance call) Telkom Indosat SLI (International call) Telkom Indosat VoIP Telkom Indosat Excelcomindo, Atlasat, Gaharu, Satria wijaya prima Cellular GSM Telkomsel telephone Indosat Excelcomindo Natrindo Hutchison CDMA Mobile 8 Indoprima Sampoerna Telkom. 3 G Telkomsel Indosat Excelcomindo Natrindo Hutchison Data and Domestic & international leased circuit Internet Domestic & International frame relay (ATM) VSAT Whole sale internet access IP-VPN Dial up Internet WI-fi & hot spot Network & Leasing of transponder Interconnect Satellite Broadcast ions Satellite based leased line Terminal based leased line Types of Types of service/ Telecommu- telecommunications nications technology Product Fixed line Fixed wire line (local) Local telephone telephone Local telephone Fixed wireless (local) Telkom Flexi Star One Esia SLJJ (Long distance call) SLI (International call) TIC 007 SLI 001,SLI 008 VoIP Telkom Global 017, Telkom Save Global Save Cellular GSM Simpati, Hallo, telephone kartu As Matrix, Mentari, IM3 XL Bebas, Jempol, Xplore Solusi (local) 3 (Three) CDMA Fren Primasel Ceria, Neon 3 G Data and Domestic & international Operator: Telkom, Internet leased circuit Indosat Domestic & International frame relay (ATM) VSAT Whole sale internet access IP-VPN Dial up Internet WI-fi & hot spot Network & Leasing of transponder Operator: Telkom, Interconnect Satellite Broadcast Indosat ions Satellite based leased line Terminal based leased line Source: Telkom, Indosat Table-3 Types of service and operators of fixed telecommunication service Types of services Operator Fixed wire line Telkom Batam Bintan Telecom Fixed wireless Telkom Indosat Bakrie Telecom Source: Data Consult Table-4 Development of installed capacity and line in services of fixed lines in Indonesia, 2002-2006 (line unit) Year Installed capacity 2002 8,400,662 2003 9,558,752 2004 11,912,708 2005 13,927,369 2006 15,717,300 Source: Telkom/Indosat/Data Consult Table-5 Number of lines in service, 2002-2006 (line units) Year Lines in service 2002 7,750,035 2003 8,479,115 2004 10,233,464 2005 13,505,760 2006 14,703,621 Source: Telkom, Indosat, Bakrie Table-6 Number of subscribers of fixed telephones, 2003-2006 (Line units) Year 2003 2004 2005 2006 Fixed wire line 8,214,328 8,559,350 8,686,131 8,709,211 telephone (line units) Growth (%) -- 4.2% 1.5% 0.3% Fixed wireless 0,264,787 1,673,781 4,819,762 6,082,537 telephone Growth (%) -- 532% 315% 9.5% Total fixed 8,479,115 10,233,131 13,505,893 14,791,748 telephone Growth (%) -- 20.7% 31.9% 9.5% Source: Telkom Table-7 Sales of fixed line services, 2004-2006 (Rp million) Revenues 2004 2005 2006 Fixed wire line telephone 10,546,400 10,271,300 9,920,600 Fixed wireless telephone 0,385,029 0,949,255 2,037,661 Total 10,931,429 11,220,555 11,958,261 Source: Telkom, Indosat, Bakrie Telecom Table-7 Operators of fixed telephone and shareholders Operator Shareholders Shares Telkom Indonesian government 51.19% Investing public 48.81% Foreign; PMCB US Resident 8.71% The Bank Of New York 7.83% Other 29.45% Indonesian 3.27% Indosat Indonesian government 14.38% Singapore Technologies 41.60% Telemedia Public 44.56% Bakrie PT Bakrie & Brother 50.25% CMA Fund Management Ltd 15.08% PT Bakrie Communications 3.17% Richweb Investment Ltd 2.08% Public 29.42% Source: Telkom/Indosat Table-8 KSO projects in several regional areas Regional Operator/ Status division Operational coverage KSO partners KSO I Aceh, North Sumatra, PT Pramindo Ikat Taken West Sumatra, Riau, Nusantara over in Jambi, South Sumatra, Consortium 2001 Bengkulu, Lampung II Jakarta, Bogor, Tangerang, Telkom -- Bekasi, Serang, Purwakarta III West Java, Banten PT Aria West Taken over International in 2003 IV Central Java, PT Mitra Taken over DI. Yogyakarta Globaltele- by Telkom communications V East Java Telkom -- VI West Kalimantan, Central PT Daya Taken over Kalimantan, East Mitratele- in 2002 Kalimantan, South communications Kalimantan VII North Sulawesi, Central PT Bukaka Singtel Revision of Sulawesi, South Sulawesi, agreement Southeast Sulawesi, Bali, in 2006 West Nusa Tenggara, East Nusa Tenggara Maluku, Papua Source: Telkom Table-9 Operators of fixed wireless telephone services Operators Systems License Products Telkom CDMA 2000 1x Local /limited Flexi Indosat CDMA 2000 1x Local /limited Star One Bakrie Telecom CDMA 2000 1x Local /limited Esia Source: Telkom/Indosat/Bakrie Table-10 Telecommunication networks of fixed wireless telephone operators, 2006 (units) Bakrie Telecommunications networks Telkom Indosat Telecom Base Transceiver Stations (BTS) 1,531 1,018 408 Base Station Controllers(BSC) 38 26 10 Mobile Switching Centre (MSC) 19 8 6 Source: Telkom/Indosat/Bakrie Table-11 Number of fixed wireless telephone subscribers, 2004-2006 (units) Users/subscribers 2004 2005 2006 Telkom-Flexi Classy Post-paid 654,000 727,000 698,000 Trendy Pre-paid 745,000 3,241,000 3,382,000 Flexi Home Post-paid 30,000 94,000 96,000 Subtotal 1,429,000 4,062,000 4,176,000 Bakrie-Esia Post-paid 9,350 20,303 64,278 Pre-paid 61,689 351,826 1,414,920 Bakrie-Ratelindo Regular and 120,990 114,475 68,359 telecom. service outlet Indosat-Star One Subtotal 192,029 486,604 1,547,557 Post-paid 11,898 19,708 20,545 Pre-paid 40,854 251,450 338,435 Subtotal 52,752 271,158 358,980 TOTAL 1,673,781 4,819,762 6,082,537 Source: Telkom/Indosat/Bakrie Telecom Table-12 Plan for development of rural telephone with USO facility Number of Year villages Number of line units 2007 18,000 27,713 2008 10,100 27,515 2009 11,583 28,998 2010 2,235 2,235 Total 44,809 114,766 Source: Post and Telecommunications Directorate general Table-13 Fixed cable telephone tariffs effective since April 1, 2004 Cost of installation and monthly bill Access cost Business (Rp) Household (Rp Social (Rp) Installation 175,000-450,000 75,000-295,000 50,000-205,000 Monthly 38,400-57,600 20,600-32,600 12,500-18,500 subscribers Price per Usage cost pulse (Rp) Pulse duration Up to 20km 250 3 minutes(non (local) busy hours) and 2 minutes (during busy hours) More than 20km 250 2 minutes (non busy hours) and 1.5 minutes (in busy hours) Domestic long Price per Rounding of time distance minute (Rp) of block duration 0-20 km 83-122 1 minute 20-30 km 122-163 1 minute 30-200 km 325-1,290 6 seconds 200-500 km 460-1,815 6 seconds More than 500 km 570-2,270 6 seconds Source: Telkom Table-14 Post paid tariff of fixed wireless telephone effective since 2004 Types of telephone services Tariff per 60 second (Rp) Flexi Star One Esia Connections to subscribers of the same brand Local 49 19 50 Domestic long distance 0-200 km 900 Within island16.65 50 200-500 km 900 Inter island 33.32 50 PTSN/FWA Local 150 260 250 Domestic long distance 0-200 km 900 1,000-1,500 636-1,000 200-500 km 1,500 1,300-2,100 1,091-2,091 Connection to cellular phone Local 550 398-750 6.36 Domestic long distance 0-200 km 800-1,600 1,500-1,600 1,182-1,727 200-500 km 1,250-2,500 1,500-2,500 1,818-2,545 Source: Telkom, Indosat, Bakrie Telecom Note: PSTN: Public switch telephone network FWA: Fixed wireless access Table-15 Tariffs of pre-paid fixed wireless telephone Type of telephone services Tariff per 60 second (Rp) Flexi Star One Esia Connection to subscribers of the same brand Local 49 16.65 50 Domestic long distance 0-200 km 900 299 250 200-500 km 900 909-1,000 PTSN/FWA Local 250 100 250 Domestic long distance 0-200 km 1,400 500-750 909-1,000 200-500 km 2,400 650-1,050 1,364-2,273 Cellular telephone Local 800 199 (Indosat), 800 375 (other operators) Domestic long distance 0-200 km 1,200-1,900 749 (Indosat) 1,364-1,545 550-800(other operators 200-500 km 2,200-3,300 750-1,250 (other 1,818-2,727 operators) Source: Telkom, Indosat, Bakrie Note: PSTN = Public switch telephone network FWA = Fixed wireless access Table-16 SLI tariff of Telkom and Indosat Operators Areas Tariff/minute (Rp) Telkom Africa 5,090-6,440 America and Caribbean countries 5,090-7,470 Asia and Oceania 4,410-9,630 Europe 5,090-9,630 Middle East 5,090-8,460 Source: Telkom Table-17 SLI tariff of Indosat by areas Tariff/minute Operator Area (Rp) Indosat Austria, Belgium, China, Denmark, France, 12,840 Germany, The Netherlands, Norway, Spain, Sweden, Switzerland, India, Japan, Saudi Arabia, United Arab 11,280 Emirates, Britain, Australia, Canada, Hong Kong, New Zealand, 9,960 South Korea, Taiwan, America Finland, Ireland, 8,580 Pakistan, The Philippines, Thailand 7,500 Argentina, Egypt, Malaysia, Singapore, 6,780 South Africa Brunei, Macao 5,880 Source: Indosat Table-18 Features of fixed wireless telephone Features Flexi Star One Esia Call forwarding * * * Calling line identification * * -- presentation (CLIP) Voice mail box * * * Call waiting * * * Do not disturb * * -- Call barring * * -- Call hold * -- -- Call transfer * * -- Three party * * -- Call conference * * -- Ring back tone * * * WAP * * * Source: Flexi, Star One, Esia Table-19 Number of subscribers and fixed wireless telephone service income, 2004-2006 Description 2004 Telkom Flexi Number of subscribers line unit) 1,429,000 Amount of income (Rp million) 98.600 Indosat Number of subscribers (line unit) 52,752 Star One Amount of income (Rp million) 11.400 Bakrie Telecom Number of subscribers (line unit) 192,029 Esia Amount of income (Rp million) 275,029 Total Subscribers (line units) 1,673,781 Income (Rp million) 385.029 2005 2006 Telkom Flexi 4,062,000 4,176,000 509.900 1.058.400 Indosat 271,158 358,980 Star One 70.300 149.900 Bakrie Telecom 486,604 1,547,557 Esia 369,055 829,361 Total 4,819,762 6,082,537 949.255 2.037.661 Source Telkom, Indosat, Bakrie Telecom Table-20 ARPU of operators of fixed wireless telephone in, 2005-2006 (Rp) Operator 2005 2006 Flexi Post paid 123,000 135,000 Pre paid 19,000 35,000 Esia Post paid 158,530 145,489 Pre paid 71,399 57,405 Sumber: Telkom, Bakrie Telecom Table-21 Expansion and new investment by Telkom in December 2006 Telecommunications Implementation services Expansion/Investment plans period Fixed cable Expansion of Surabaya-Ujung December 2006 telephone Pandang--Banjarmasin submarine backbone infrastructure capacity. Expansion of Jember--Denpasar submarine backbone Expansion of Bandung-Cirebon optic fiber regional connections Expansion of local telephone central switch capacity Access networks in regional I-VI Divisions IP project to offer broad band access to all users in Indonesia Fixed wireless Completing expansion of fixed 2006 telephone wireless telephone service in 44 locations including 40 in Jakarta, 2 in Sumatra and 2 in Sulawesi Procurement of set of CDMA 2000 1x equipment in regional V Division Expansion of access of CDMA fixed wireless telephone in regional I-IV divisions Source: Telkom