Service Innovation, Coupled with Cost Savings, Keep Bakrie Telecom on Track
to Reach 5 Million Subscribers in 2008
JAKARTA, Indonesia and TORONTO, Nov. 21 /Xinhua-PRNewswire/ -- Redknee
Inc., a leading provider of innovative infrastructure software that monetizes
and personalizes services and content for mobile users, and PT Bakrie Telecom
Tbk ("Bakrie Telecom"), a pioneer in Indonesia’s affordable wireless
telecommunication services, today announced Bakrie Telecom has significantly
improved its competitive advantage with deployment of Redknee’s Prepaid
Voice and Messaging Solution. The Redknee solutions power Bakrie Telecom’s
Esia branded TalkTime service, SMS service and marketing promotions including
Circle of Friends and Family, and more.
The rapid pace of development in the Indonesian telecom market demands
that Bakrie Telecom provide new and innovative products such as their Esia
prepaid voice and text plan. Bakrie Telecom’s strategy incorporates world-
class, experienced partners with extensive research and development
capabilities such as Redknee.
"Our differentiation lies in our ability to provide relevant and
differentiated tariffs and services through customer focused disruptive
innovations," said AG Rao, CTO at Bakrie Telecom. "Redknee helps us utilize
our infrastructure as a competitive advantage. It allows us to reduce
Operating Expenses (OPEX) and Capital Expenditures (CAPEX), increase
productivity and maintain higher levels of customer retention."
Indonesia still has very low teledensity, with 4 percent for fixed and 20
percent for mobile. In comparison, the Philippines and China, countries with
similar Gross Domestic Product (GDP) per capita, have mobile teledensities of
42 and 35 percent respectively (Source: Pyramid Research, "Indonesia Country
Outlook," August 2005). According to analysts, the total number of telecom
subscribers in Indonesia is forecasted to double by 2010, exceeding 100
million subscribers.
"Redknee’s Converged Billing approach reduces OPEX and CAPEX by
converging all provisioning, transaction, charging, rating and billing for
supported services such as voice, data, messaging and mCommerce under a
single system and in real-time," said Lucas Skoczkowski, CEO at
Redknee. "This allows operators such as Bakrie Telecom to deliver the
specific leading-edge services that attract new subscribers, reduce
subscriber churn and improve revenue opportunities."
Bakrie Telecom’s Talktime campaign was launched in August 2005 and
generated an overwhelming response that propelled the Bakrie Telecom brand to
the number two position in the country (based on research by Taylor Nielsen
Research -- TNS). As a result, their customer base of 1.3 million subscribers
as of September 2006 represents a 167 percent increase over December 2005’s
487,000 subscribers. Bakrie Telecom’s monthly customer churn rate averages
four percent, compared with the industry’s average rate of 8 to 11 percent.
Bakrie Telecom also enjoys lower infrastructure costs than established telcos
utilizing existing networks.
Bakrie Telecom’s TalkTime service is built using Redknee solutions.
According to analysts and public records, this innovative service generates
significant improvement in Average Revenue Per User (ARPU). The Redknee
solutions also allowed Bakrie Telecom to program five additional marketing
promotions.
Redknee’s solutions power Bakrie Telecom’s Texting/Short Message
Service (SMS) as well as its "Circle of Friends and Family" (or Closed User
Group) features. A special rate is applied for conversations and text
messages between family members and friends of Esia prepaid card users.
About Bakrie Telecom
PT Bakrie Telecom Tbk has been operating since 1996 in Indonesia,
initially under the name of PT Radio Telepon Indonesia. The name of the
company was changed to PT Bakrie Telecom Tbk in 2003, and soon after that
launched a CDMA 2000-1X based telecommunication services under the brand
name "Esia". To meet its objective to become a national operator, Bakrie
Telecom has embarked on an MVNO (Mobile Virtual Network Operator)
collaboration with PT Indosat Tbk, with both companies agreeing to share
their network infrastructure. Bakrie Telecom has launched many innovative
products such as Gile Beneer, Rumpi Abiss, Hujan Duit and the very effective
TalkTime Campaign. Its focus on "value for money" and innovation in our
offerings has driven its corporate performance. As of end of September 2006,
the company grew its subscriber base by 327%, from 307 thousand in September
2005 to 1.3 million, increased its gross revenue by 131% from IDR 254 billion
in September 2005 to IDR 588 billion, and booked a net profit of IDR 52
billion compare to IDR 112 billion net loss in September 2005. Bakrie Telecom
went public and listed in The Jakarta Stock Exchange in February 2006.
About Redknee
Twenty-six of the world’s leading mobile operators depend on Redknee’s
proven infrastructure software to deliver value-added services and content to
over 207 million subscribers. The converged revenue engine enables operators
to quickly bring to market personalized voice, messaging and content services
in real-time. Redknee allows operators and brand owners to maximize their
differentiation and revenue while reducing expenditures by integrating with
existing environments. The subscriber experience is improved with Redknee’s
self-care, loyalty, and analytics that deliver the content and services
subscribers want when they want them. For more information, visit
http://www.redknee.com .