Bakrie Telecoms opts for Redknee solution, aims for five million subs in 2008

22 Nov 2006

Indonesian fixed wireless access (FWA) operator Bakrie Telecom has selected Canadian firm Redknee Inc to provide it with a pre-paid voice and messaging solution to power the former’s Esia-branded TalkTime service, SMS service and other related marketing promotions. In a statement Redknee said its new platform would help the operator to deliver advanced services to attract new subscribers, reduce churn and improve revenue opportunities. The new solution is claimed to reduce OPEX and CAPEX by converging all provisioning, transaction, charging, rating and billing for supported services such as voice, data, messaging and mCommerce under a single system and in real-time. Bakrie’s monthly customer churn rate averages 4%, compared with the industry’s average rate of 8% to 11%.

According to TeleGeography’s GlobalComms database, Bakrie Telecom launched in September 2003 to provide low-cost FWA services to customers in Jakarta and Bandung under the Esia brand, using CDMA technology. It claims to be one of the fastest growing telecoms operators in Indonesia, and in August 2006 said its revenues had doubled in the first six month of the year to IDR254.1 billion (USD28.1 million), up from IDR101.8 billion in 1H 2005. Moreover, the company said it posted net profits of IDR14.4 billion, reversing a loss of IDR87.4 billion a year ago, on the back of a rise in customers which reached 1.3 million by end-September, up from 487,000 in December 2005. Bakrie plans to invest approximately IDR1 trillion in its fixed wireless network and aims to increase its customer base to 1.6 million by the end of 2006, rising to five million in 2008. To meet its objective to become a national operator, Bakrie Telecom has embarked on a Mobile Virtual Network Operator (MNVO) collaboration with Indosat, with both companies agreeing to share their network infrastructure.

Indonesia, Bakrie Telecom (BTel)