Telkomsel Revenue May Reach Rp 60.1t i

Telekomunikasi Seluler, the mobile operator unit of Telekomunikasi Indonesia, the country’s largest telecommunication firm, opened its first service center in Makkah, Saudi Arabia, on Monday in order to provide service for Indonesian pilgrims and migrant workers in the country. (JG photo/Jurnasyanto Sukarno)

By : Rizagana | on 3:02 PM January 11, 2014
Category : Business, Corporate News

Telkomsel’s revenues are thought to have grown by more than 10 percent in 2013, thanks in part to more mobile phone subscribers.

A senior executive hinted revenues may have hit Rp 60.1 trillion ($4.9 billion) last year from Rp 54 trillion in 2012.

“We’re thankful for the public’s trust in our products and services. Of course, the successes of 2013 are the fruits of teamwork from everyone in the company,” said Alex J. Sinaga, president director of Telkomsel, at a press conference on Thursday.

The company is due to announce its 2013 numbers at a press conference in February.

Telkomsel, majority owned by Telekomunikasi Indonesia, had 131.5 million mobile phone subscribers at the end of 2013, up 5.2 percent from a year earlier.

Indosat had the second-largest subscriber base with 53.8 million by the end of September, 2013 while XL Axiata had 51 million subscribers last year, according to media reports.

Alex attributed such stellar performance amid cut-throat competition in the mobile phone business to Telkomsel’s high standards of professionalism and service. There are nine mobile phone service providers in Indonesia.

Telkomsel posted total net income of Rp 13.1 trillion in the first nine months last year with revenues at Rp 44 trillion, the company said in a statement last year.

In an effort to improve its telecommunication services, the company added more 3G channels on the 2.1 Ghz frequency and built more base transceiver stations (BTS).

Throughout 2013, Telkomsel built 15,000 new BTSs bringing their total to 67,000, Around 24,000 of these can handle 3G data.

In comparison, Indosat reported 23,000 operating BTSs in 2013 with 5,000 handling 3G data.

Telkom is also preparing to release its 4G LTE (Long Term Evolution) technology, that it previewed at the Asia-Pacific Economic Conference in Bali last year.

Several operators also have the newer 4G LTE technology.

But Internux’s BOLT is the only one commercially available in Indonesia right now, having recently launched in the Jakarta area.

There are about 270 million mobile phone subscribers in Indonesia, or about 110 percent of the total population, putting it ahead of Vietnam but behind Singapore in terms of penetration.

With 131 million subscribers, Telkomsel control less than half of the total market but boasts a better return than its rivals.

“Yes, our share of the market maybe less than half, but our revenue share is more than 50 percent and that is the most important number,” said Mas’ud Khamid, sales director of Telkomsel.

Most mobile phone operators in Indonesia are switching their focus to data services to push their revenue amid an increasingly competitive telecommunication industry.

Show More