Hutchinson proclaimed to launch its mobile services, PT Hutchinson CP Telecom, in Indonesia. Initially, the GSM mobile telephony services will be introduced in Jakarta.
On March 29, 2007 Hutchison Telecommunications International Ltd, announced the launch of its mobile operation, PT Hutchison CP Telecom or HCPT, in Indonesia. Initially, GSM mobile telephony services under 3 brands with 3G services covered in Jakarta would be provided by HCPT.
At time of launching HCPT, the company stated that it would cover most of Java Island and expect to cover Sumatra by 2007 & Sulawesi by 2008, according to news printed on Trading Markets. According to Dennis Lui, Chief Executive Officer of Hutchison Telecom, “With one of the largest populations in the region and a low wireless penetration rate, Indonesia is an extremely attractive market that fits well with the Group's model of pursuing growth and creating value in dynamic markets.
"Mr Lui added in news printed on Light Reading., “The huge growth potential combined with Hutchison Telecom's international expertise and proven track record in driving growth in new markets make us confident that Indonesia will soon become one of our principal growth markets in the years to come”. The numbers and the potential are the lure despite the fact that Indonesia has the lowest per capita ratio of cellular subscribers among Southeast Asian countries. During the previous few years, the number of mobile users has grown at double-digit rates in the country.
Economy of Indonesia is expected to grow by 6%. During 2006 & 2008, the telecom sector is expected to develop by a compound annual growth rate of 30% per annum. Increments in subscribers are supposed from 58% in 2006 to approx 100 million by 2008, provided present low penetration of about 26%.
High economic growth rates associated with the improvement of broader middle classes, a steady gain in population and the increasing urbanization in the country can be specified as reasons for the rapidly growing demand for telecommunication services, as per some industry experts.
Telecommunications networks in Indonesia must be expanded. For making under developed industry competitive, foreign expertise, capital, and technology are required. Excellent opportunities for new players in the Indonesian mobile market are provided by increasing market size and high churn rate, said a research analyst at RNCOS.
Related Market Research Reports:
Asia Pacific Mobile Handset Market Analysis
Mobile Handset Industry Asia (2004-2009)
Changing Faces of The Global Mobile Handset Market (2007)
