ISP business in Indonesia still is dominated by big players manly those having wide networks. Some of the main players are Telkom, Indosat Mega Media (IM2), Excelcomindo and Broadband Multimedia .
Telkom with a number of products like Telkomnet Instant (Dial Up), Speedy (ADSL), Astinet (Dedicated), Telkom Hotspot (wireless) and Telkomnet Flexy (CDMA). Is the largest ISP with the widest network and largest number of subscribers.
Other main players are Indosat Multi Media (IM2), with products including Indosatnet (Dial Up), Internet Instant (through I Phone), IM2 (Pay TV), IM2 Indosatnet (dedicated), IM2 Hotspot (wireless) and Indosatnet Mobile (StarOne), Indosat Broadband 3,5G.
PT. Telkom is a state company (BUMN) originally holding the exclusive right to operate telecommunications in Indonesia. PT.Telkom began to enter ISP business with the product of Telkomnet Instant.
Telkomnet Instant, is a dial-up internet connection using cable fixed telephone networks of PT. Telkom with access code of 080989999. With the expansion of cellular business, PT. Telkom expanded access of Telkomnet Instant through wireless fixed telephone, Flexi.
Later PT. Telkom launched broadband service Telkom Speedy - in 2005. Telkom Speedy is connected through cable fixed telephone which has been modified into Multi Media Access (MMA).
The position of Telkom in internet connections business is dominant after it launched Speedy using the technology of Asymetric Digital Subscriber Line (ADSL) as ADSL is much superior over other cable connection that is dial up system. Telkom virtually holds the monopoly in ADSL business in Indonesia.
Through Telkom Vision, PT. Telkom also sells internet connections combined with cable TV service. Telkom Vision service is available only in three cities - Jakarta, Surabaya, and Bandung. In Jakarta the service is available in a number of restaurants, hotels, apartments and office buildings.
Telkom also enters business in mobile service provided for the subscribers of Telkom Flexi (CDMA).
The potential of business in internet connections has prompted Telkom to plan expansion of its service by expanding wireless service through farther hot spots. Now there are hundreds of hot spots of Telkom .
PT. Telkom by Nov. 13, 1995 was wholly owned by the government before it launched initial public offering (IPO) later that year. With the IPO , the government shares were reduced to 80%. After four block sales, the government's control of PT. Telkom was reduced further to 51.19%.
Indosat Mega Media (IM2)
When the ISP industry began to grow in 1996, PT. Indosat, a state company operating in telecommunications business established PT. Indosat Mega Media (Indosat M2) as a subsidiary to operate in ISP business.
In December 2002, Indosat M2 held merger with Indosatcom ands started operating B2B e-commerce, and established a new subsidiary PT Mediagate Indonesia.
In 2003, Indosat M2 expanded service of internet connections by opening dial-up access with code number of 080988001 that could access from 180 cities in Indonesia. By the end of 2006, the number of dial-up subscribers totaled 27,027.
In the same year , Indosat M2 expanded internet access through cellular network of GSM in cooperation with Indosat (Mentari, Matrix, and IM3). Currently, internet connections via this cellular could also be accessed by CDMA a subscriber that is Fren.
Indosat through internet connections , dedicated, with number of subscribers reaching 1,199 in 2006 up from 751 subscribers in previous year.
When internet began to be used publicly early 1996, Lintasarta was one of the pioneers in providing dial-up access which was quite advanced at that time known as Internet Indonesia On-Line Access (IdOLA).
IdOLA could be accessed from 11 large cities in Indonesia including Medan, Batam, Jakarta, Bogor, Bandung, Yogyakarta, Solo, Semarang, Surabaya, Denpasar, and Balikpapan. The coverage of the service was considered adequate at that time.
Before entering the ISP business, Lintasarta was a provider of telecommunications networks through frame relay, digital leased line and VSAT for the business sector especially banking, and insurance, established in 1988.
Cyberindo Aditama (CBN)
CBN was established in 1995 having 9 Point of Presence (POP) in a number of cities -- Jakarta, Bogor, Bandung, Bali and Samarinda. CBN has dial-up and broadband services that include cable TV, DSL, dedicated, wireless, mobile, and satellite. CBN launched wiring service by connecting subscribers especially in a number of areas in Jakarta with its copper cable.
Biznet was established in 2000. Biznet developed Metro Ethernet service a network of fiber optic in Jakarta that succeeds in attracting subscribers. The fiber optic network of Metro Ethernet is built in prestigious areas of Kuningan -Sudirman-Gatot Soebroto-Slipi- TB Simatupang-Pondok Indah, Jakarta. With the networks, Biznet is expected to attract many subscribers in the coming years.
In 2007, Biznet launched Fiber to the Home (FTTH) to attract subscribers from among individuals. So far most of its subscribers are companies.
Numbers of subscribers and internet users grow fast
The number of internet subscribers in Indonesia has increased in the past 5 years. In 2005 the number of internet subscribers grew 38% to 1.5 million. The number shot up 67% to 2.5 million in 2006.
The sharp increase followed the launch of broadband service with lower price that boost ISP service industry in Indonesia.
In the coming several years, competition is expected to grow causing a cut in the prices of computer sets. The number of internet subscribers, therefore, is expected to continue to scale up. The number of internet users has increased with the growing number of telecommunications service centers offering lower tariffs. The wider access drew more subscribers in 2004-2007.
Access of mobile internet through cellular phone or Fixed Wireless Access also opened new market of internet users through hand phones. The lower prices of hand phones with increase in accessing capacity and lower tariffs through mobile internet are expected to attract more users in the coming years.
Telkom with its TelkomNet instant dominates the service of internet access. In 2006, the number of subscribers of Telkom accessing TelkomNet Instant reached 680,000, or up 36% from the year before. Meanwhile accessing time was 3.7 billion minutes or an increase of 32% from the year before.
In the past three years broadband Speedy subscribers grew fast in number to reach 300,000 in 2007 or tripling the number of 100,000 in 2006.
The number of cable internet subscribers also grew fast after PT First Media launched broadband internet access through its TV Cable network known as Fast Net.
ISPs race to expand capacity to attract subscribers
ISP companies have rushed to attract subscribers in 2008, marked with growing demand for connections to the cyber world . PT Telkom (Speedy) is set to chalk up a 500% increase in the number of subscribers and PT Indosat Mega Media (IM2) sets a more ambitious target with a 1,000% increase.
Speedy Telkom has a broadband capacity for 330,000 subscribers , and it is to be increased to 1 million subscribers . In addition to expanding broadband capacity, Telkom is set to attract more Speedy subscribers by planning to offer pre-paid service next year similar to voucher system in cellular phone.
With the support of 3.6 gigabyte (GB) bandwidth, Telkom hopes to increase the number of its subscribers to one million next year or a 400% surge from 212,000 in 2007. Telkom is set to develop user minded (using voucher system) instead of subscriber minded. Telkom plans to issue nominal value of voucher between Rp 50,000 and Rp 100,000.
In a bid to reach the target, Telkom has acquired the network service of Asia America Gateway (AAG). Telkom is set to improve the performance of Speedy, which contribute 8% to the income of Telkom
Meanwhile, PT IM2 has a target to increase the number of its subscribers by almost 1000% in 2008. By the end of 2008, it hopes to chalk up 25,000 subscribers to be increased to 200,000 subscribers in 2009.
In order to reach the target, IM2 will widen its coverage area from 10 large cities at present to 28 cities including 16 provincial capitals and 12 other large cities.
IM2 will expand network by using the network of Indosat. IM2 is expected to grow to become a major contributor to the income of Indosat in the future although it is only a small contributor a present. Currently IM2's contribution is less than 10%.
The number of subscribers of Telkom in 2006 was recorded at 893,200 including 680,000 dial-up subscribers, 120,000 cable internet subscribers and 93,200 ADSL subscribers. The number did not include subscribers of mobile (CDMA) Telkom Flexi.
The number of Indosat M2 subscribers was 28,443 including dial up 27,027, dedicated 1,199, and 217 VPN subscribers. The number of subscribers in 2007 grew following the operation of mobile internet of Indosat M2.
Smaller players like Pacific have 5,000 subscribers. The subscribers include 3,000 corporate subscribers and 2,000 individual subscribers. ...................