|Title:||Indonesia annual fixed wireless access subscribers and market share by carrier in units and percentages for 2008 to 2010|
|Source:||Indonesian Commercial Newsletter|
Start of full article - but without data
FWA business players and number of subscribers
Year Telkom % Indosat % Bakrie %
2008 XX.XXX.XXX XX.X XXX.XXX X.X X,XXX,XXX XX.X 2009 XX,XXX,XXX XX.X XXX.XXX X.X XX,XXX,XXX XX.X 2010 XX,XXX,XXX XX.X XXX.XXX X.X XX,XXX,XXX XX.X
Year Mobile-X % Total
2008 XXX,XXX X.X XX,XXX,XXX 2009 XX,XXX X.X XX,XXX,XXX 2010 XXX,XXX X.X XX,XXX,XXX
Sources: Post and telecommunications directorate
general, Data Consult
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.
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.
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.
The number of BTS units of Telkom grew X.X percent units in 2010 to reach X,XXX units--or XX units larger than in the previous year. Those of Bakrie Telecom rose higher by X.X percent to X,XXX units in 2010.
The number of BTS of Mobile-X Telecom grew X.X percent in 2009, but the increase did not change the number of active BTS as at the same time some of its BTS units were not active under maintenance with some units relocated. Those of Indosat grew X.X percent or an increase of XX units in 2010.
In 2011 marked with network expansion
Players have continued to expand their networks in a bid to attract more subscribers. Bakrie Telecom in early 2011 built a number of new BTS units in X cities in Sumatra--Batam, Pekanbaru, Medan, Palembang and Lampung. To be completed in mid 2011.
The expansion is to expand network coverage. Currently Bakrie Telecom's network users outside Jakarta-Banten-West Java, including in Sumatra is still below XX percent as against XX% in the Jakarta-Banten-West Java region. Capacity expansion is made mainly in large cities with good prospects of attracting substantial number of subscribers.
PT Mobile X Telecom Tbk hopes to double the number of its BTS in 2011. Mobile-X plans to build more units of BTS in various areas including Aceh, West Sumatra, Riau, Jambi, Bangka Belitung, West Kalimantan and East Kalimantan
Players also plans network expansion by increasing communications lines between BTS and Base Station Controller (BSC), and Mobile Switching Controller (MSC) from originally using radio link to optic fibers.
Telkom started the change in the communications lines and until early 2011; around XX% of its units of BTS had used communications lines with optic fiber using the technology of GPON (Gigabit Passive Optical Network). New units of BTS built in 2010 all used the infrastructure.
For the sake of comparison, radio link, infrastructure with the technology of TDM (Time Division Multiplexing) could channel traffic with a bandwidth of X MBps, as against the technology of GPON that could reach the level of GBps. This big capacity will be useful in channeling data service, content and video service.
ARPU declining amid sharp on competition
Average Revenue per User (ARPU) has tended to decline in the past several years
Telkom's ARPU reached Rp XX,XXX in 2006--down in the following years to reach only Rp XX,XXX in 2010. Bakrie Telecom's ARPU shrank from Rp XX,XXX in 2006 to Rp XX,XXX in 2010.