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Table

FWA installed capacity and line in service

                     2008

Operator    Installed     Lines in
             capacity      service

Telkom      XX.XXX.XXX   XX.XXX.XXX
Indosat     X.XXX.XXX       XXX.XXX
Bakrie      XX.XXX.XXX    X.XXX.XXX
Mobile-X    X.XXX.XXX       XXX.XXX
Total       XX.XXX.XXX   XX.XXX.XXX

                     2009

Operator    Installed     Lines in
             capacity      service

Telkom      XX.XXX.XXX   XX.XXX.XXX
Indosat           N.A       XXX.XXX
Bakrie      XX.XXX.XXX   XX.XXX.XXX
Mobile-X    X.XXX.XXX        XX.XXX
Total       XX.XXX.XXX   XX.XXX.XXX

                     2010

Operator    Installed     Lines in
             capacity      service

Telkom      XX.XXX.XXX   XX.XXX.XXX
Indosat           N.A       XXX.XXX
Bakrie      XX.XXX.XXX   XX.XXX.XXX
Mobile-X    X.XXX.XXX       XXX.XXX
Total       XX.XXX.XXX   XX.XXX.XXX

Note:

*) Installed capacity in 2010 using data from 2009

Sources: Post and telecommunications directorate
general, Data Consult

Full article

Mobile fixed telephone (fixed wireless access /FWA) has become a new growth center for fixed telephone service business. FWA has grown steadily in the country over the past several years.

Mobile equipment and competitive tariffs have made FWA a potential alternative to cellular phone for telecommunications users. Business players in this sector have continued to expand their networks and improve their services especially in data services.

FWA telephone operators have to compete against cellular phone operators which also continued to seek to improve their service and increase their competitiveness in tariffs. Cellular phones have superiority in the fact that they have unlimited mobility. In General, however, tariffs are still the key factor in market competition.

Telecommunications networks of FWA

FWA telephones use integrated telecommunications networks enabling users to make communications with holders of other communications devices.

The communications are made through BTA which have transmitter and receiver. The signal is then sent to mobile switching centre (MSC) to be proceeded to base station controller (BSC) and to the telephone central.

The number of BTS and other telecommunications equipment will determine the coverage of a telecommunications system.

FWA capacity grows to meet growing demand

Telkom has the largest capacity of FWA service among the players in the country. The domination of Telkom, however, is not as strong as in fixed wire-line business.

Installed networks of Telkom covers XX.X percent of all installed FWA capacity in 2010. The second largest in capacity is PT Bakrie Telecom which has networks with installed capacity of XX percent of the total installed capacity. Two other players--Indosat and Mobile-X networks respectively have installed capacity of X.X percent and X.X percent.

Installed capacity grew XX.X percent in 2009. No data were available in 2010, but growth of installed capacity was believed to continue through that year and in the following years as the FWA business prospects are still encouraging, despite stiff competition against cellular phone business.

Number of subscribers of FWA growing

The number of subscribers of FWA has continued to increase through tending to slow down. The highest increase in the number of subscribers was recorded in 2008 when the number shot up XXX percent to XX.X million subscribers from XX.X million subscribers in the previous year. That year a new player PT Mobile-X entered the business.

The growth rates in the following years were lower to XX.X percent with XX.X million subscribers in 2009 and to XX.X percent with XX.X million subscribers in 2010.

Telkom has largest number of subscribers

Among the four players in the FWA business, Telkom has the largest number of subscribers. In 2009, Telkom had XX.X million FWA subscribers or XX% of the total number of FWA subscribers. In 2010, the number of its FWA subscribers rose to XX.X million with a market share of XX.X percent.

Bakrie Telecom is the second largest player with XX.X million subscribers in 2009 or XX.X percent of the total number of subscribers. The number rose to XX.X million in 2010 or XX percent.

Mobile-X (SmartFren) had XXX,XXX subscribers in 2009 and Indosat had XXX,XXX subscribers in the same year.

FWA players

Currently there are four players in fixed wireless telephone (FWA) service business. Hey are PT Telekomunikasi Indonesia Tbk (PT Telkom) with product of Telkom Flexi; PT Bakrie Telecom Tbk with product of Esia; PT Mobile-X Tbk with product of Hepi; and PT Indosat Tbk with product of StarOne.

The four players use the CDMA 2000 Xx technology for voice and data services. Data service in CDMA Xx technology is XXX Kbps. Other players like PT Mobile-X and PT Telkom, as well as PT Bakrie Telecom also use the technology of EVDO (Evolution Data Optimized) for broadband data access with a speed of X.X Mbps -X Mbps.

Frequency arrangement

The government arranges the use of frequency among the FWA operators to create harmony in the operation of the service in Indonesia. Players like PT Telkom and PT Bakrie Telecom have bandwidth of X.XX MHz for the area of Jakarta, Banten, West Java (JBJB) and X.XX MHz for national coverage.

Mobile-X had a bandwidth of X.XX MHz for all over Indonesia, and PT Indosat uses band with smaller width of X.XX MHz for national coverage.

Networks capacity of players

The capacity of operators in serving communication traffic of their subscribers is reflected by the number of the units of network infrastructure such as Base Transceiver Station (BTS). BTS is a transmitter and at the same time as the receiver of the transmission from the FWA subscribers.

In 2010, Telkom had the largest number of BTUS units. Telkom had X,XXX units of BTS all over Indonesia. The number was much larger than those of the second largest or Bakrie Telecom which had X,XXX units of BTS in the same year.

Other players Mobile-X had X,XXX units of BTS and Indosat had X,XXX units.

Operators have continued to expand their network capacity as shown by the growing number of BTS although not as fast as cellular phone. The number of BTS continued to increase in 2010.
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