Wednesday, 11 April 2007

Hutchison Launch Instigates Price War in Indonesia

Hutchison is planning to start its mobile operation in Indonesia. Hutchison has inked an agreement with the Charoen Pokphand Group, a provider of GSM mobile telephony services. "With one of the largest populations in the region and a low wireless penetration rate, Indonesia....

Hutchison is planning to start its mobile operation in Indonesia. Hutchison has inked an agreement with the Charoen Pokphand Group, a provider of GSM mobile telephony services.

"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," said Dennis Lui, chief executive of Hutchison Telecom, in a statement.

"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," Lui added.

Hutchison plans to invest a further USD 600 million from now until 2008 to develop its cellular services, Lui said. The company had already spent USD 400 earlier to develop the company's services.

"We also expect to net as many as 1 million new subscribers as soon as possible," Lui added.

Lui hopes Hutchison Indonesia will breakeven two years after the launch of the service.

In the highly competitive Indonesian cellular market, PT Telkomsel is the largest operator andcontrols 52 per cent of the market. Indonesia, along with India, Russia, China and Brazil are identified as the fastest growing mobile market world over.