Senin, 24 Agustus 2009

BAKRIE TELECOM

BAKRIE TELECOM

Bakrie is actually a pretty old company. At that time they used Extended Time Division Multiple Access (ETDMA) technology and it is the second fixed line operator in Indonesia.

They re-branded their product and started calling it Esia in order to expand the customer base in the few years. But for this wireless limited mobility what they have done is basically with government license so that they are allowed to operate in every city. In 2006 they were awarded a nationwide license because of their success. It is still based on fixed wireless mobility but now they are able to operate in any city in Indonesia.

Their potential risks associated with the business environment have been identified and scenario planning undertaken to assess any possible adverse impact these might have on the company’s goals. They have also explored and studied internal control methods to mitigate risks. They are currently implementing a risk management procedure known as Control Self Assessment which assists the Company in evaluating risk exposures for each business process. Everyone involved in the business process has a role in deciding, evaluating and controlling risks to develop teamwork and cooperation with a strong commitment to manage risk and implement the business process.

Bakrie Telecom used budget telecom business model. Their position more to be like Air Asia, low budget carrier kind of company where people go in just to get from point A to point B. They put a lot of effort on branding and advertising. Focus on this target segment with low cost advantages and highly promoting expendable coverage area.

On the net pricing has stimulated loyalty because people are actually building their own community. They are selling their product to family, companies, school classes so that they can enjoy this very cheap on-net tariff that they have.

They used dual-phone which can use GSM card and CDMA card has also come into the market. The advantage is that they get a lot of asset productivity compared to GSM. People pay less to cover the same area at the same capacity and notice that they need about 75% less base station to provide the same coverage and capacity of GSM operator. They are also 30% more efficient and they don't need to constantly replace their network.

The business may be characterized as always offering something fresh, useful, enjoyable, simple and affordable. That creates stickiness. They strongly believe that telecommunication is a major driving force for efficiency and productivity. In time, these benefits will result in economic growth.

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