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"In Indonesia, Bakrie's CDMA brand obtains a good attention and the quantity of our customers increases rapidly. We think Huawei's innovated industry leading BTS and great capability networking solutions can content our requirement of network development, and help us realize maximum benefit in TCO saving and network operation. " ---- Erik Meijei, Deputy President Director of Bakrie

Bakrie Telecom Takes the Harvest Road(260k)

Bakrie Telekom is one of the pioneers of Indonesia's telecommunication industry. Through continuous innovation, it continuously redefines the industry ensuring that telecommunication services bring the maximum benefit to the people of Indonesia.

Bakrie sets out to quickly win over end users

When it set up operations back in 1993, Bakrie was one of the pioneers in Indonesia's burgeoning telecom industry. At its outset, the company had two major goals. First, it planned to attract subscribers by introducing genuinely ground-breaking innovations. Second, and perhaps most important of all, it wanted to redefine the local telecom industry by ensuring the people of Indonesia would derive maximum benefit from the telecom revolution. In 2003, Bakrie chose Huawei as its network construction partner for the Bandung launch of its new Esia-branded service.

Telecom history shows us that the keys to attracting potential subscribers and seizing market opportunities are fast network deployment and top-flight network performance. In order to achieve these goals, Bakrie paid a great deal of attention to EV-DO data service; the key to enhancing ARPU.

Because of Bandung region's high population density, Bakrie needed to offer in-depth communication network coverage if it was to succeed in its objectives. Before it could acquire the private land it needed to construct its BTS site, the company had to first obtain permission from both the government and the landholder. This was not an easy process. The fact that transmission resources are very lacking in Indonesia was another headache for Bakrie. In order to resolve these issues, the company seriously considered opting for a microwave transmission-based service. Ultimately, the high cost of such a step meant that Bakrie urgently needed a solution that would slash its potentially escalating deployment and operating costs.

The multiplex solution paved the way to success

After carefully weighing several options, Bakrie unified its development strategy to its projected demand, and chose Huawei as its partner; to continually provide solutions and services.

To manage the heavy traffic demand of Bandung's dense population, Huawei proposed an ultra-large capacity networking solution. Since large-capacity networks require significantly fewer BTSs, Bakrie saves considerably on its site acquisition costs.

Bakrie's power amplification efficiency increased to 33% after Huawei's application of their industry-leading DPD and Doherty technologies. As a result, Bakrie is able to guarantee total communications network coverage for subscribers across all of Bandung.

The BTS Abis interface, supporting 240 voice channels per E1, enables the company to realize substantial resource savings on new transmission bandwidth needs by optimizing usage of existing resources.

Bakrie's adoption of Huawei's ALL-IP solution enabled it to slash transmission costs by more than 60%. In other words, when measured against traditional networking technologies, Huawei's ALL-IP networking solution is not only more convenient and flexible, but it also fully exploits the advantages of CDMA2000 1xEV-DO.

Huawei offers Bakrie the advantages of a full-fledged combined 1X/DO networking solution. Huawei's 1X/DO technologies fully protect operators' existing investment, and reduces potential EV-DO deployment costs by sharing resources such as feeder, power supply transmission, and service equipment.

In 2006, Bakrie joined forces with Qualcomm to demonstrate the superiority of EV-DO services based on existing networks at Bandung's IDB University, one of Indonesia's best known educational institutes. The event was a huge success, attracting many high-end users who wanted to subscribe. Bandung's culture of educational enterprise is already quite established.

The success of the EV-DO demonstration at IDB University proved to increase the bond of trust between Bakrie and Huawei.

Bakrie enhances its brand loyalty

After adopting Huawei's solutions, Bakrie cut its construction and operating costs by over 60%. Huawei completed the vital first phase of the recent Bandung project in the astonishingly brief period of just three months. This helped Bakrie attract a large number of users in the process. As a result, Bakrie has become the fastest-growing telecom operator in Indonesia, with growth rates approaching 100% in the first half of 2006 alone.

The high quality of Bakrie's network KPI means the company continues to fly high in the Indonesian telecom market. According to a respected Indonesian public survey company, Bakrie's user churn rate of 1% is only one-fourth that of the national average. At the same time, a survey on brand and advertising effectiveness shows that Bakrie's 66% CDMA user-recommendation rate is the highest in Indonesia.

Milestones

• January 2008, Bakrie and Huawei deliver networks in 14 cities including Surabaya, the second largest city in Indonesia.
• May 2007, Bakrie chooses Huawei to construct CDMA networks in 20 cities in Indonesia.
• July 2006, the CDMA network is expanded by Huawei in Bandung. 
• May 2006, Bakrie joins forces with Qualcomm to demonstrate the superiority of EV-DO services based on existing networks at Bandung.
• February 2004, Bakrie launches the CDMA network of Bandung.
• December 2003, Bakrie chooses Huawei to deploy the network in Bandung, Indonesia.