January 2007

INDOSAT National
INDOSAT target for 2007 is to increase the number of subscriber by 33% ( 5 to 6 million numbers). Their CAPEX would amount to USD 1 billion, this would include the 3G development.

XL
XL expansion program to Papua would be implemented in 3 Q 2007. The number of BTS would reach 54 units in three cities i.e.: Manokwari, Jayapura and Timika. The optical network would increase 2,000km, so XL would have total 10,000km.

Mobile 8
Mobile 8 claimed through their product FREN has made tremendous growth achievement in Central Java. In 2006 they have activated 425,000 numbers (subscribers), this is 170% of that achievement in 2005. In 2007, they plan to deploy 75 more new BTS in Central Java and Yogyakarta to extend their service coverage.

Amendment of Telecommunication Law 36/99.
The government is now working on the bill for amendment of Telecommunication Law 36/99. The major amendment would be on unified access licensing and improvement on the telecommunication license application procedure. Besides, the new amended Telecommunication Law would take a side to competition instead of monopoly. The amended telecommunication law would include Telecommunication and Broadcasting Convergence.

IT base integrated development network by TELKOM
TELKOM will focus on the IT (IP) base integrated development network until 2008. They have prepared a budget for this project amounting to IDR 1 trillion. This year they'll spend IDR 400billion for this project. One of the IT solutions they'll develop is TENOSS (TELKOM national support system) within TELKOM and TELKOMSEL Network as a part of Infusion 2008.

Communication System Directorate General Duty and Taxes
Directorate General Duty and Taxes is going to tender for their communication System. The total budget is IDR 64.5 billion. It is now on the prequalification stage and 29 companies are registered. Major telecommunication players are participated such as TELKOM, INDOSAT and EXCELCOM.

INDOSAT GSM and CDMA
INDOSAT plans to integrate GSM cellular services with CDMA fixed wireless services. The following services: MATRIX, MENTARI, IM3 and Star One will be in one intelligent network. INDOSAT plan for Central Java and Yogyakarta is to deploy 400 units BTS worth IDR 1.2trillion this year. The 40% of BTS will be deployed in urban areas and the rest will be deployed in the remote areas to cover the blank spot. They target to increase number of subscriber by 60% in the two provinces this year.

XL Plan
EXCELCOMINDO will issue bonds of IDR 1.5trillion. The money they collect from issuing bonds will be used to finance among others their CAPEX value of USD 700 million to deploy 2000BTS through out Indonesia. They expect to increase their subscribers to 14million in 2007 from 9.5 to 9.8millions they had as of end of 2006.

WIMAX
The government will not postpone the tender for BWA frequency at 2.3GHz, but they will go for tender only one block frequency band for each area (15MHz) this time. The government will put forward the local content condition for every company who wins the tender. WIMAX forum stated that the chip for 2.3GHz will only be available in 2008.