PT Telekomunikasi Indonesia (Telkom) has reported a 3.15% rise in net profit for the first quarter of 2005 to INR1.7 trillion (USD178 million), thanks to strong growth at its mobile business thanks to a series of tariff cuts. Telkom has cut call costs twice this year in a bid to compete with local rivals Indosat and Excelcomindo Pratama. Sales grew by 21% to INR9.35 trillion during the period. Telkom expects cellular subscribers at its mobile arm PT Telekomunikasi Sellular (Telkomsel) to increase by 47% during 2005; in Q1 2005 the figure grew by around 1.2 million to 17.5 million. Telkomsel’s profit rose 47% in the first quarter to INR1.8 trillion, while sales increased 32% to INR4.41 trillion.