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Telkom’s MVNO Business in Malaysia Starts Q3

telkom-indonesia-ftSource Indonesia Finance Today

AKARTA – A telecommunication (telecom) issuer, PT Telekomunikasi Indonesia Tbk (TLKM), aims to commercialize cellular service in Malaysia by the third quarter of this year, using Mobile Virtual Network Operator (MVNO) scheme.

MVNO is cooperation between mobile cellular telecom service providers and is limited to voice and data services. MVNO provider cooperates with telecom operators holding permits of frequency spectrum allocation and network access, as MVNO provider does not hold the permit.

Finance Director of PT Telkom Honesti Basyir said that the company is having parallel discussion with Malaysia’s four cellular operators. Telkom’s overseas business will be managed by its subsidiary, PT Telekomunikasi Indonesia International (Telin).

Basyir said that MVNO business in Malaysia has potential to grow high following the large market. Telkom eyes the market segment from Indonesia’s labor (TKI) working at Malaysia. Based on the company’s research, the figure of TKI in Malaysia reaches four million people.

Big Challenge

Teguh Prasetya, founder of Indonesia Cloud Forum (ICF), said that Telkom’s expansion with MVNO business model in Malaysia will be a challenge for the company. Malaysia’s cellular penetration is already high as there are many players and various services.

Prasety asaid Telkom will find it difficult to acquire 50 percent market share. Prasetya also assessed the average MVNO players in the world can only acquire 10 percent market from their partner operators.

Malaysia’s cellular market is already saturated. Opportunity may exist in niche market. However, it will not be easy. It highly depends on Telkom’s strategy,” Prasetya said. (*)

source link via Telkom’s MVNO Business in Malaysia Starts Q3
About PT Telekomunikasi Indonesia, Tbk
PT Telekomunikasi Indonesia, Tbk (IDXTLKMNYSETLKLSETKID) , commonly abbreviated as Telkom Indonesia or just Telkom, is the largest telecommunications services company in Indonesia. Telkom is a semi-privatized, majority state owned multi-listed company.

Telkom Indonesia is the telecommunication business unit mainly in fixed line telephony, internet and data communications. It is also the parent company of the Telkom Group, which is engaged in a broad range of businesses that consist of telecommunication, multimedia, property and finance services. Since 2008, Telkom Indonesia began transforming its business focus, infrastructure, systems, organization and human resources, as well as the corporate culture, as their effort faced rising competition.

Despite this Privatization in 1995, Telkom Indonesia has a combined total of approximately 129.8 million customers at end of December 2011 increased by 7.8 percent from 2010, making the company the nation’s largest telecommunication service provider by subscribers.

In December 2011, PT Telkom has announced that the company plans to grant early retirement programs for 4,000 of its employees starting in 2012 over the next three years and set to about 15,000 employees only by 2015.

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