Mobile-8 merges units to cut costs

12 Jun 2007

Indonesian CDMA wireless operator Mobile-8 Telecom has completed a business restructuring designed to increase efficiency and reduce operating costs. Under the plan, three of its operating units – PT Komunikasi Selular Indonesia (Komselindo), PT Metro Selular Nusantara (Metrosel) and PT Telekomindo Selular Raya (Telesera) – have been merged, effective from 31 May this year. The plan was approved by shareholders at a meeting last week. Mobile-8 offers CDMA services under the trade name Fren. It now plans to replace the outmoded AMPS networks used by the merged companies in Java, Bali, Kalimantan, Sumatra and Sulawesi with digital CDMA technology, writes The Jakarta Post. ‘Mobile-8 has begun progressively phasing out the AMPS system and replacing it with the CDMA system, and is able to provide nationwide services,’ the company said in a statement.

Mobile-8 currently has around two million subscribers says TeleGeography’s GlobalComms database, and is in the process of expanding its service coverage to areas outside Java. It hopes to sign up four million users by the end of this year, rising to 6.9 million by the end of 2008. Its network currently comprises 490 base transceiver stations (BTS), with plans to install a further 1,408 in the short term – half of which will be deployed in Sumatra, Kalimantan, Sulawesi, Papua, Maluku and both West and East Nusa Tenggara. Mobile-8 faces stiff competition in the market for low-cost CDMA-based wireless services. Its rivals include national PTO Telkom with its TelkomFlexi product, Bakrie Telecom (which markets services under the Esia brand), Indosat’s StarOne product and Sampoerna Telecom Indonesia, which offers a CDMA-based service under the Ceria banner.

Indonesia, Mobile-8 Telecom