Telkomsel launches ‘Facebook by Fonetwish’ app (Indonesia)
Indonesia’s leading mobile operator, Telkomsel, has launched ‘Facebook by Fonetwish’ application for its customers. The service allows its subscribers to log into their Facebook profiles, update status and view their friends’ walls, by simply dialing a number, without needing an internet connection.
Singapore-based software applications developer U2opia Mobile developed Fonetwish for mobile phones allows users to access Facebook on all kind of handsets without internet. Fonetwish has a reach of over 300 million people across the globe.
According to reports, Ririn Widaryani, Deputy VP Product Lifecycle Management, Telkomsel has said that they are enthused by response to Fonetwish by Facebook application. Indonesia has the highest adoption of the Facebook in the region and they expect a good response to this service.
Sumesh Menon, Founder and CEO of U2opia Mobile, has said that over the next few months, Facebook by Fonetwish will add more functionality, based on what the local market is looking for.
Bharti Airtel’s profit contribution to SingTel falls 37 percent in Q2 (India, Singapore)
Bharti Airtel’s contribution to its biggest shareholder SingTel reached the lowest in the past six quarters, when it fell by 37 percent to US$ 101.4 million for the second quarter. The decline in Airtel’s contribution is also considered to be the reason for SingTel falling short of analysts’ forecasts.
According to reports, Weng Cheong, CEO, SingTel said that this quarter, the investments by Airtel in its Indian 3G network and African operations incurred license fees amortisation and financing costs, which combined with weaker regional currencies, had dampened their results.
As per sources, Bharti Airtel had been the leading contributor towards SingTel’s profits prior to June 2009, after which Telkomsel Indonesia came in the frontline. Reports reveal that at the end of the second quarter, Telkomsel’s contribution to SingTel’s profits went up by 1.4 percent to US$ 180.4 million while that from Advanced Info Service PCL rose 17.3 percent to US$ 60.3 million compared to the same period last year. Further, company reports indicate that Bharti Airtel accounted for 15 percent of SingTel’s profit of $ 682.9 million for the three months ended September 2011.
Telkomsel partners with On-Waves to provide low cost international roaming services to maritime workers (Indonesia)
Telkomsel, the largest cell phone operator in Indonesia, has partnered with Iceland-based maritime GSM service provider, On-Waves, to provide low-cost international roaming services to people working on ships. According to reports, Sarwoto Atmosutarno, Managing Director, Telkomsel has said they hope that over 30,000 Indonesians working in the maritime sector around the world can enjoy this international roaming service. He added that apart from providing expanded roaming access, they are also offering lower rates for voice, SMS and data services.
As per sources, Telkomsel distributed free premier SIM cards to 30 Indonesian crew members on the Louis Cristal cruise ship. Sarwoto reportedly added that customers using either Halo, AS or Simpati SIM cards would now be able to make calls to anywhere in the world for $1 (IDR 9,000) per minute and send text messages for $0.22 (IDR 2,000) per message.
Talking from a business point of view, Sarwoto has said that for the 30,000 Indonesian citizens working in cruise ships, commercial and oil drilling in the middle of the sea, cooperation with operators such as On-Waves GSM helps them to stay in touch with their family at an affordable cost. He added that such cooperation deals present an opportunity with a huge potential to be developed.
Indonesian anti-monopoly agency considers buying Temasek assets
Indonesia’s anti-monopoly agency is considering seizing assets owned by Singapore’s Temasek Holdings unless a local subsidiary does not pay a court-imposed fine.
According to the anti-monopoly agency, Temasek had breached antitrust laws by using its indirect stakes in two local mobile networks, Telkomsel and Indosat to fix prices.
The company was fined US$17 million in May 2010 after appealing against court rulings dating back to 2007. Temasek sold its stake in Indosat to Qatar Telecom in 2008 following a separate court ruling.
According to Tresna Soemardi, the agency’s chairman, they are now inventorying Temasek’s assets and expect to complete the activity in 2011, these assets would stand be seized unless the fine is paid.
According to Muhammad Reza, the agency’s Chief of Investigations, once the company has been formally notified of the fine and doesn’t pay it, the Indonesian anti-monopoly commission may ask for a court order to seize the said companies assets.
Temasek Holdings is an investment company owned by the government of Singapore, and it has a 55% stake in Singapore Telecom (SingTel), which in turn owns 35% of Indonesia’s Telkomsel.
Telkomsel launches mobile money transfer service (Indonesia)
Telkomsel, Indonesia’s largest mobile service provider has launched a mobile money transfer service called T-Cash Kirim Uang (Telkomsel Cash Transfer), which allows customers to transfer money using their cell phones.
Subscribers need to register for prepaid e-wallet deposits, which function like bank accounts. It helps customer to transfer funds via SMS, which recipients can claim at customer service centers and thousands of branches of retailer Indomaret in Java, Bali and Lampung. All they need is the recipient of the transaction number to an authorized merchant to claim the money.
According to Ricardo Indra, Telkomsel’s corporate communications manager, the service is the first of its kind in the country. Company’s target market is the people who do not have bank accounts, especially in rural areas.
Temasek’s final appeal rejected by Indonesia’s SC
www.WirelessFederation.com/news: Singapore-based Temasek Holding’s final appeal against a decision by the country’s anti-monopoly authorities concerning its telecoms investments has been rejected by Indonesia’s Supreme Court.
Temasek Holdings has stakes in PT Telekomunikasi Selular (Telkomsel) which Indonesia’s largest cellcos by subscribers and PT Indosat through its Singapore Technologies Telemedia STT unit. However, it was forced to sell its stake in Indosat to Qatar Telecom for USD1.35 billion, following the ruling by the Komisi Pengawas Persaingan Usaha (KPPU).
The anti-monopoly commission adjudged in 2007 that Temasek and its affiliates were in breach of Indonesia’s anti-monopoly laws and ordered the sale of one of their telecom units in Indonesia. According to a spokesman for the KPPU, the Supreme Court through its verdict on 5 May 2010, as written on its official website, states that it has rejected a judicial review, filed by Temasek, over the Supreme Court decision.
Indosat offers tender for its tower purchase (Indonesia)
www.WirelessFederation.com/news: Separate and independent tender offers has been launched by two subsidiaries of Indonesia’s second largest cellular operator, PT Indosat, to purchase for cash any and all of their outstanding notes. Raising new 10-year money in line with the tender offers is also on Indosat’s cards.
Indosat Finance Company is buying back its outstanding 7.75% guaranteed notes due November 2010 amounting to USD235 million, while Indosat International Finance Company is purchasing its outstanding 7.125% guaranteed notes due 2012 amounting to USD109 million.
The Qatar Telecom-controlled operator has 17,010 towers which could be worth around $1.9 billion. Two subsidiaries of Indonesia’s second largest cellular operator, PT Indosat, have launched separate and independent tender offers to purchase for cash any and all of their outstanding notes. Indosat is also raising new 10-year money in line with the tender offers.
A series of investor meetings in Singapore, Hong Kong, London and the US has been held by Indosat and the pricing is expected before the end of next week. The tender offers expire on June 9 and to receive the early tender premium bondholders will need to tender the bonds before the early tender deadline
The business is eyed by Indonesian private equity firm Saratoga Capital, which has much of its $450 million assets invested in telecoms towers and other infrastructure. As per Saratoga chairman Edwin Soeryadjaya, funding would not be an issue as our partners are in a strong position and estimated that Indonesia needs 150,000 towers to meet demand, but to date less than 40,000 towers have been deployed. Telkom, owner of the country’s largest cellco Telkomsel has not decided yet whether it would be bidding for for Indosat’s tower business or not.
Purchase of 12,000 of Indosat’s towers has been on Telkom’s cards with a view to rolling these assets into its tower arm, Mitratel, ahead of a planned IPO and almost $400 million in loans has been secured by the company from local banks to help buy out SingTel’s stake in its tower arm in readiness for Mitratels’ listing.
Meanwhile, XL Axiata has announced that it has no plans to put its tower assets back on the block. Due to economic slowdown last year, its plan to sell tower was put on hold.
Singtel’s profit rises due to regional businesses, Bharti, Optus (Singapore)
www.WirelessFederation.com/news: Due to the increase in the revenue at the regional businesses and the Optus unit in Australia, the fourth quarter profit of Southeast Asia’s largest phone company, Singapore Telecommunications Ltd rose 12 percent. Revenues from mobile division units of SingTel including Bharti Airtel Ltd. and PT Telekomunikasi Selular also contributed to the fourth straight quarter of profit growth of the company.
Singtel’s earnings increased by 12 percent to S$546 million, courtesy the performance of its regional mobile units. Indonesia’s largest mobile-phone company, Telkomsel’s earning surged 26 percent to S$205 million on revenue growth from an increased customer base and currency movements. 8.6 percent rise in earnings to S$245 million has also been posted by Bharti Airtel. Globe Telecom Inc., SingTel’s Philippine unit, posted a 23 percent decline in profit to S$61 million. Earnings from Advanced Info Service Pcl, Thailand’s biggest mobile-phone rose 4.6 percent to S$53 million.
According to Chief Executive Officer Chua Sock Koong, it’s too early to determine the impact on earnings of a proposal by India’s telecommunications regulator to impose a fee on operators such as Bharti.
Net income of the company gained to S$1.02 billion ($740 million), full-year profit rose 13 percent to S$3.91 billion, revenue rose 25 percent to S$4.46 billion and it had 293 million mobile-phone customers at the end of the quarter, or 17 percent more than a year earlier. The fourth-quarter earnings before interest, taxes, depreciation and amortization were little changed at S$579 million in the fourth quarter.
Meanwhile, the company is targeting new Australian subscribers through its mio TV service, with broadcasts of World Cup soccer matches starting next month. As SingTel spent more to attract mobile-phone customers and add new content to mio TV, the division’s profit margin dropped 4.5 percentage points to 35.3 percent. Witnessing a strongest mobile-phone customer growth in five years, Sydney-based Optus income rose 5 percent to A$610 million ($545 million).
Telkom Indonesia plans to buy out tower investor
www.WirelessFederation.com/news: Nearly US$400 million in debt is seeked to be raised by Indonesia’s PT Telekomunikasi Indonesia (Telkom) in order to buy out the minority partner in its indirect towers holding company. PT Telekomunikasi Selular (Telkomsel) owns the towers and 65 percent of Telkomsel is owned by Telkomsel and 35% by Singtel.
Macquarie Group was picked by Telkom last month to advice on the telecoms tower deal, which could be worth up to US$1.2 billion. It also announced its plans to later list the tower unit on the local stock exchange. According to Rinaldi Firmansyah, Telkom’s president director, the negotiation with SingTel is currently ongoing and the company has appointed Macquarie to advise us as it has extensive experience in infrastructure.
Around 20,000 towers are managed by the unit and only around 9,000 of those could be considered able to generate revenue from sub-letting to other telecoms operators.
