|Title:||Indonesia cellular telephony operators' subscribers and market share in units and percentages for 2010|
|Source:||Indonesian Commercial Newsletter|
Start of full article - but without data
Cellular operators and market, 2010
NetworksGSM PT Telkomsel Halo, Simpati, Kartu As PT Indosat Matrix, Mentari, IMX PT XL Axiata XL Jempol, XL Bebas, Xplor PT. Hutchison Three Charoen Pokphand Telecommunication PT. AXIS Telekom Indonesia Axis (formerly PT. Natrindo Telepon Seluler) Sub Total Subscribers GSM NetworksCDMA PT. Smartfren Telecom Smart Fren Hepi PT. Sampoerna Ceria Telecommunications Indonesia Sub Total Subscribers CDMA Total
Operator Number of Share subscribers (%)
NetworksGSM PT Telkomsel XX.X XX.X PT Indosat XX.X XX.X PT XL Axiata XX.X XX.X PT. Hutchison XX.X X.X Charoen Pokphand Telecommunication PT. AXIS Telekom Indonesia X.X X.X (formerly PT. Natrindo Telepon Seluler) Sub Total Subscribers GSM -- -- NetworksCDMA PT. Smartfren Telecom X.X X.X
PT. Sampoerna X.XXX X.X Telecommunications Indonesia Sub Total Subscribers CDMA -- -- Total XXX.X XXX.X
Sources: Post and telecommunication directorate general
Cellular phone telecommunications have grown fast in Indonesia over the past XX years marked by the number of subscribers. The number of subscribers has increased from year to year. Indonesia is the fourth largest in number of cellular phone subscribers in Asia after South Korea, China and Japan.
Currently, Indonesia has X operators of cellular phone using the technology of GSM (Global System for Mobile) and X operators with technology of CDMA (Code Division Multiple Access). Based on data at the Pots and Telecommunications Directorate General, in the period of 2006-2010, the number of cellular phone users in Indonesia grew XX% per year. By the end of 2010, the number of cellular subscribers reached XXX million, with GSM operators dominating XX% of the cellular market CDMA having a X% market share. Pre-payment dominate XX% of payment system with post payment accounting for only X%.
Telkomsel, with XX million subscribers, had the largest share or XX.X% of cellular market in 2010. Cell phone market has reached rural areas even isolated areas in the country. Telkomsel service has covered all kecamatan district areas in Indonesia since 2008.
The number of cellular phone users in Indonesia has increased rapidly Teledensity has reached XX.X% in the world fourth most populous country of XXX million people, but still lower than Singapore's XXX%.
The rapid growth of the business and the market potential that is still open for penetration attract more investors to the country. A number of foreign operators in Asia such as Singapore Telecommunication Ltd (SingTel), Axiata Group Berhad (formerly Telekom Malaysia) and Maxis Communication Bhd from Malaysia already established foothold in the country through acquisition of the shares of local operators including Telkomsel and XL Axiata (formerly Excelcomindo). Indosat, which was formerly a state telecommunications company, has also fallen into the hand of foreign investor. Qatar Telecom Group acquired XX% stake in Indosat from STT (Singapore Telecommunication Technologies), and XX% through tender offer. The government holds XX%.
In early 2011, the government approved additional frequency allocation of X MHz for X operators of third generation (XG) telecommunications technology PT Axis Telekom Indonesia (formerly PT Natrindo Telepon Selular) and PT Hutchison CP Telecommunication Indonesia. Meanwhile, almost all suppliers of telecommunications technology in the world have their units in Indonesia to get a share of the huge and growing market. Cellular telecommunication is one of the most dynamic service industries that require large additional investment every year. In 2011, spending on telecommunications networks is estimated to reach US$ X.X billion.
In facing the tight competition, some operators seek merger such as PT Smart Telecom by acquiring Pt Mobile X. The merger of the two companies gave birth to new larger company PT Smartfren Telecom early 2011. Currently all cellular operators rely more on data service and subscribers as the main sources of income.
Cellular telecommunications system
Currently Indonesia has two systems of cellular telecommunications Global System for Mobile communication (GSM) and Code Division Multiple Access (CDMA).
GSM is a digital telecommunication technology operating on frequency of XXX MHz. In the frequency of XXX MHz, GSM has XXX slots of carrier frequency canal with a bandwidth ranging from XXX MHz--XXX MHz uplink and XXX MHz--XXX MHz downlink. The band width for each slot is XXX kHz. As the use of the frequency could not meet the requirement of the subscribers, given the rapid growth of the number of subscribers, the same frequency could be reused under the mechanism of frequency re-use at one BTS with a certain safe distance, is applied.
The GSM technology is widely adopted and developed in Europe. GSM is superior in many aspects over the old analog system. International Roaming could be made with GSM technology. It is not tied to one supplier; therefore, there is no monopoly. The validity of subscribers is examined before a conversation take place with the facility of hopping frequency. There would be no third party that could illegally hear the conversation. The voice quality is better and more sensitive, the subscriber capacity is larger and the features of subscribers are more varying, paging, facsimile, and ISDN.
In 1995 the government granted the operating licenses nationally for three GSM XXX operators without going through tender--Satelindo (later merged into Indosat), Telkomsel and XL Axiata (formerly PT. Excelcomindo Pratama). Currently there are X GSM cellular operators in Indonesia.
In order to increase the GSM canal capacity, there is now frequency of XXXX MHz (X.XGHz) or known as Digital Cellular System (DCS) XXXX, a Personal Communication Network--PCN from Europe.
GSM on the frequency of XXXX MHz is generally known as DCS (Digital Cellular System) XXXX or GSM XXXX in which there are XXX carrier frequency canals that could be used to serve cellular subscribers. The canals consist of uplink: XXXX MHz--XXXX MHz and downlink: XXXX MHz--XXXX MHz.
The use of frequency of XXXX MHz will increase the capacity to serve GSM subscribers. DCS XXXX is generally adopted in urban areas which need large serving capacity as the number of subscribers is generally larger in urban areas. The high frequency of GSM XXXX has positive effect on services. In the same service area, GSM XXXX could provide larger connecting capacity almost three times that of ordinary GSM. However, it has negative side that it needs more units of BTS (Base Transceiver Station) than needed by GSM XXX. This is because of the greater use of the frequency of GSM XXXX compared to the use of frequency of XXX MHz.
In addition, in a number of cases, GSM XXXX has some communication problems for use in some types of high rise buildings. DCS XXXX system is used by operator PT. Natrindo Telekomunkasi Seluler.
With the growing demand for mobile telecommunication services, higher frequency will be needed to serve the growing number of subscribers that is one with a frequency of XXXX and known as PCS (Personal Communication System) XXXX.
PCS XXXX has smaller coverage area but has larger capacity to serve larger number of subscribers compared with DCS XXXX and GSM XXX. One new GSM operator using the frequency of XXXX MHz. Is PT HutchisonCP Telecommunications Indonesia using the X G technology XG in addition to GSM.
CDMA also constitutes a system of digital technology used in fixed as well as mobile telephones. The technology is adopted widely in North America.
The CDMA technology especially CDMA XXXXXx is known to be superior in that it produces much clearer voice and in the speed of data transfer. The superiority of GSM lies in roaming and broad usage of the technology.