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 Monday, January 24, 2011

Indonesia’s state-owned telecoms company PT Telekomunikasi Indonesia (Telkom) says that last year its landline customer base slumped to 8.4 million from 8.7 million in 2009, continuing the downward trend of recent years. The Jakarta Post quotes the telco’s vice president of public relations, Edi Kurnia, as saying that ‘Even though the decreasing number of customers is not really high, the use of the cable lines has shrunk significantly.’

Although the official declined to confirm exact figures, Kurnia did say that revenues from landline services has been in freefall over the last few years, declining by 18% in 2008, 16% in 2009 and a further 6% in 2010. Mobile substitution has been attributed as a primary reason for the fall, although Telkom is working hard and introducing incentives, such as fixed bills and points reward programmes, to encourage people to hold on to their fixed telephone. The company also sees its broadband service Speedy as a key tool in the fight to retain customers and, as part of this, plans to launch a triple-play service in March this year.