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Siemens Launches Product Offensive in Growth Market Indonesia
May 24, 2004
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Siemens mobile, the mobile communication group at Siemens AG, announce plans to win further market share in the Indonesian mobile phone market.

With a population of 220 million inhabitants, Indonesia is the world's fourth-largest country and one of the strategic growth markets in Asia for the company, Lothar Pauly, member of the Group Board of Siemens mobile, said at a press conference in Jakarta. In the network sector, the mobile phone company says it is already collaborating successfully with the three mobile operators -- Telkomsel, Indosat, and Excelcom.

As part of its plans, the company said it will launch a "product offensive," starting with its new C65, CX65, M65 and S65 models, which range from an entry-level handset to a high-end mobile phone featuring a 1.3-megapixel camera.

Siemens said it wants to get Indonesian mobile phone customers interested in its new products and significantly increase its current market share of 9 percent. The number of Indonesian mobile phone users increased by 60 percent last year and today totals more than 20 million subscribers, it said, adding that about 9 percent of the country's population owns a mobile phone. The company also reported that this number is expected to rise to 60 million by 2008, according to market estimates.

Siemens did note that increasing their networks in Indonesia poses particular challenges to mobile operators. In regions with low average revenue per user, the costs of building a network are high, while the anticipated revenues are low. In response, Siemens is offering its "SmartInspire" solution. The solution's compact equipment package and flexible network utilization options enable network operators to cost-effectively serve even smaller, lower-revenue regions, the company said, adding that this is a prerequisite for being able to profitably tap into growth markets.

With an archipelago of 13,500 islands, the mobile phone company said Indonesia is also an interesting market for wireless modules. Siemens has already supplied the Indonesian State Electricity with 2,000 of these modules, which are being used to read electric meters at both large corporations as well as small and medium enterprises and send the readings to the State Electricity's headquarters via SMS.

Siemens said it sees itself outstandingly positioned in Indonesia and expects that will continue. The company reports that out of the 22 UMTS/3G networks that are in commercial operation throughout the world today, 12 are from Siemens and its partner NEC -- and UMTS/3G will launch in Indonesia this year in test networks. Moreover, the company said that various data services that Siemens has supplied to Indosat as end-to-end solutions, such as location-based services, are already being used to test how these kinds of services are being received by the Indonesian mobile communication customers.

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