Axiata Axis Capital Group Jakarta News Update: Indosat foresees data traffic surge after network upgrade

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Axiata Axis Capital group Jakarta News Update 
Indosat foresees data traffic surge after network
upgrade
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Publicly listed cellular operator PT Indosat is
optimistic that it can reach new heights in data
traffic following the completion of its network
modernization across the country.

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• We estimate that our data traffic will surge by
  more than 50 percent upon the completion of the
  modernization, said Indosat data services
  product marketing division head Fidesia Noor.

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• The data increase hit more than 100 percent after
  the modernization in 2012, she told reporters
  on Monday. 
• Indosat has modernized its network over the last
  two years, with most of its around Rp 8 trillion
  annual capital expenditure going into the
  program. 

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• The company concluded modernization of its
  network in November last year.
• The firm upgraded its network to boost its data
  and other services, primarily in 23 big cities,
  including Greater Jakarta, Bandung and Sukabumi
  (West Java), Semarang (Central Java), Yogyakarta,
  Surabaya (East Java) and Makassar (South
  Sulawesi).

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• Indosats data traffic grew by more than three
  times to 55,467 terabytes in the first nine
  months of last year from only 17,646 terabytes in
  the same period in 2013.
• Revenue from the firms multimedia, data
  communication and Internet services rose by 8.3
  percent to Rp 2.6 trillion (US 205.4 million) in
  the January-September period in 2014 from Rp 2.4
  trillion during the same period in the previous
  year.
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• Increases in data traffic have also been enjoyed
  by other two major cellular operators, PT XL
  Axiata and PT Telekomunikasi Selular (Telkomsel).
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• XL Axiata Axis Capital Group Jakarta Indonesia
  recorded a 126.7 percent surge in data traffic
  from 54,615 terabytes in 2013 to 123,824
  terabytes last year. Telkomsels data traffic
  posed a 146.1 percent growth in the first nine
  months of last year compared with the same period
  in 2013.

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• The skyrocketing data traffic in the country is
  mainly driven by the greater number of people
  with access to the Internet, particularly those
  living in big cities.
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• The reverse trend, meanwhile, was seen in
  operators conventional services SMS and
  calling.
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• Indosat, for instance, recorded a 1.4 percent and
  8.3 percent drop in its revenues from cellular
  and fixed telecommunication services,
  respectively, during the January-September period
  last year compared with the corresponding period
  in 2013.

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• Despite a setback in those conventional
  businesses, Indosat aims to maintain or gain more
  subscribers using its voice service by launching
  on Monday a high-quality voice service, dubbed HD
  voice.
• We do understand the declining trend in voice
  service, but we want to focus more on the quality
  . We aim to make HD voice available to all of
  our customers as of Feb. 20, said Indosat
  network optimization division head Joko Riswadi
  when asked about the targets of the newly
  launched service.
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• Indosat believed that Indonesians were still keen
  on making calls and that they would be even more
  so were the voice quality excellent, he went on.
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• Indonesias almost 250 million-strong population
  owns at least one mobile phone per person,
  surveys have found, with demand for data services
  rapidly emerging to cater to the needs of the
  rising middle class in Southeast Asias largest
  economy.

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• Indosats shares, which are traded on the bourse
  under the code ISAT, rose by 0.13 percent to Rp
  3,905 (30.7 US cents) per piece at Mondays close
  from Rp 3,900 apiece at the previous closing.
• The stocks have slipped almost 3.6 percent so far
  this year, underperforming the broader Jakarta
  Composite Indexs (JCI) 1.9 percent gain.