Competition among long distance international call (SLI) operators in Indonesia is becoming tougher with the arrival of a new player, Bakrie Telecom, with its SLI 009 access code.

The operation of Bakrie Telecom, through its Esia brand, ends the duopoly of telecommunications in Indonesia.

It means that Indonesia has three SLI operators, while previously two operators dominated the market, PT Telkom with SLI 007 (premium rate) and 017 (economy rate), as well as PT Indosat using 001 for its premium rate and 008 for the economic rate. Bakrie Telecom this year launched its 009 access code based on Communications and Information Ministry Regulation No. 59/2009.

The latest news is that more new players will enter the business after the government opens up bidding for SLI.

"One of the prerequisites is that the operator must develop an international gateway (SGI). More operators will decrease their SLI rates," said Communication and Information Ministry's Director General of Post and Telecommunications Basuki Yusuf Iskandar.

Another operator that has submitted an SLI proposal to the government is Excelcomindo Pratama (XL). The company meets the prerequisite as it has two SGIs, one in Singapore and another in Johor, Malaysia. In the not too distant future it will add yet another in Malaysia.

"If given the opportunity, we are ready to fulfill the requirement. We have held talks with the government and other parties and the project is in process," said Excelcomindo Pratama (XL) commerce director Joy Wahyudi.

The director general of post and telecommunications is optimistic that in the near future more domestic operators will enter the SLI business. This is based on the rapid progress of telecommunication technology and the rising demand of the market.

The large business volume or market size is also one of the reasons why many operators are interested in the SLI business. The Indonesian Telecommunication Regulation Agency (BRTI) estimates that the SLI market has a potential volume worth Rp 7 trillion. The huge volume is partly due to the more than 4.5 million Indonesian workers employed in foreign countries, more than 50,000 Indonesian students studying abroad as well as increased communication between local businesspeople and their foreign counterparts. All these are obviously the target of SLI services.

For its SLI services with 009 access code, Bakrie Telecom has invested more than US$25 million for the network infrastructure, such as a number of SGIs in a number of major cities in the country. In the near future, three more SGIs will be developed in Surabaya, Makassar and Medan.

"We will synergize our network expansion, which at the end of 2008 reached 64 cities with SLI and domestic long distance call service (SLJJ)," said Noorman Ilyas, corporate communication director of Bakrie Telecom.

With Bakrie Telecom being a new player in SLI services, it has to offer more benefits to win customers' hearts. One of the plus points is that SLI 009 has a lower rate and a better voice quality. "The rates are up to 77 percent lower than those of our competitors," said Erik Meijer, vice president director of Bakrie Telecom.

Although the rates are lower, Bakrie Telecom assures that the voice quality is crystal clear as it is channeled not through the Internet network or VoIP (voice over Internet protocol), but via uncompressed real clear channel voice connection. It therefore uses the slogan "Suara Bening, Harga Banting" or "Cheap Choice for Clear Voice", to show that the company is concerned about offering the best rates while providing excellent service.

For the introduction period, there is a special rate for calls to the US and some Asian countries, such as China, Hong Kong, Singapore, Malaysia, Brunei, Thailand, South Korea and Taiwan. "It is only Rp 49 per second, exclusive of sales tax, and is for both peak and off peak hours as well as holidays," added Erik Meijer.

Currently, Bakrie Telecom is conducting an aggressive promotion campaign through various media, including major TV stations. By informing potential customers about its low rates and crystal clear voice it is expected that more customers will switch to Bakrie Telecom's products, such as Esia, Wifone and Wimode.

Meanwhile, XL will also apply low rates and good voice quality to its SLI service. According to Joy Wahyudi, the SLI business still has lots of opportunities as at present XL international calls have reached 600 million calls per day, which are mostly from foreign countries. "We are ready to become the latest player in SLI in Indonesia. All preparations have been made, so we are now waiting for the operation day. Hopefully, it won't be too long before XL offers SLI services here," said Joy.

It is clear that the SLI business is lucrative for many operators. However, competition is unavoidable. But at the end of the day, consumers will benefit from lower rates and better services

"The arrival of Bakrie Telecom as the latest SLI operator is expected to create healthy competition in the telecommunication world, especially for SLI services, which will finally benefit the public due to the lower rates and better quality service," said the director general of post and telecommunication. (thejakartapost.com)

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