Competition is tough in every business sector, including the mobile phone industry. Every year, a new mobile phone incorporating state-of-the-art technology is launched in Indonesia, and the latest revolutionary introduction is the iPhone 3G.
This product manufactured by Apple is predicted to give Blackberry a hard time here because most of its features are similar, such as camera, multimedia player, SMS capability and visual voicemail. The iPhone 3G can also be connected to the Internet to send and receive emails, access websites, etc. Another unique feature is its multi touch screen with a virtual board and keypad.
Indeed, iPhone 3G marks a new smart phone era because both iPhone 3G and BlackBerry have specific features of their own. BlackBerry has its push email, while the iPhone has various unique features that set it apart.
Apple is relying on Telkomsel for distribution in Indonesia. This means that distribution will cover places where Halo, Simpati and AS cards are sold. The sales launch of iPhone 3G was held on March 20, at Pacific Place, Pavilion South Entrance, South Jakarta. On the occasion, the following distributors were represented: PT Trikomsel Oke (Oke Shop), PT Cipta Multi Usaha Perkasa (Global Teleshop), PT Simpatindo Multimedia (Sarindo) and PT Telesindo Shop (Telesindo Shop). On March 28, the distribution of iPhone 3G went nationwide. Currently, iPhone 3G is available in more than 70 countries.
The iPhone 3G will be sold at Telkomsel outlets, Grapari, for Rp 2,622,000. In the US, the 8GB version sells for US$199 while the 16GB type carries a price tag of $299. However, US users are tied to a contract with AT&T for two years. The price in the US is low due to a subsidy from AT&T as the operator. AT&T has stated that one day it will offer the iPhone without a contract, meaning without a subsidy, which will raise the price to $599 for 8GB and $699 for 16GB, similar to the price of the earlier iPhone 2G.
Telkomsel planning and development director Herfini Haryono said the phone would compete directly with the Blackberry. "The target is to exceed Blackberry subscribers not long after the launch. Currently, Blackberry has more than 50,000 subscribers," she said.
In a similar vein, Telkomsel president director Sarwoto Atmosutarno said that although being a newcomer, he is confident the mobile phone will give Blackberry a tough time in competition. "We will also provide users with a totally new experience, as the iPhone 3G is revolutionary and combined with the expansive Telkomsel network, it will satisfy our customers with its various facilities, like voicemail, SMS, browsing and music player," he said.
Telkomsel will offer three special price packages for the iPhone 3G, which will include free talk-time, SMS and data access. Incoming calls are totally free, while 360 minutes or six hours of outgoing calls are free and 300 SMSes are free. Meanwhile, free data access is for the uploading and downloading of 1 GB at the speed of 3.6 Mbps. Users of Telkomsel's Halo, Simpati and AS cards can all enjoy these facilities.
This latest iPhone 3G can be used for the entire network of Telkomsel (both 2G as well as 3G), and is capable of detecting Wi-Fi spots automatically, so Internet access is easy at any time and in numerous places. Telkomsel's network covers the whole nation, including small towns, and it has been successful in launching its 3G network in more than 140 cities in Indonesia. Based on its consistent commitment to serve better, this year Telkomsel year allocated $1.5 billion for various facilities, including the best 3G network available.
Telkomsel offers 11 application services that are uniquely Indonesian, namely: TransJakarta Busway Information, Aphrodite (world sports schedule), Jakarta Globe (news service in English), BuUuk (recommendations for Jakarta's and Bali's culinary places), Foyage (map of local cities), Detik.com (news service in Indonesian), Angklung (music), SCTV (television), Kapanlagi.com (web on lifestyle and entertainment), Macetlagi.com (portal for monitoring streets, traffic conditions and streaming) and Kompas (news service in Indonesian). All the applications can be downloaded free for a certain duration from Apple App. Store.
New subscribers that register the purchase of an iPhone 3G on its website will get first priority after the launch. They will be contacted via email or SMS about the details of subscription, etc.
Meanwhile, BlackBerry, produced by Research In Motion (RIM), Canada is distributed by Indosat. This leading smart phone in Indonesia has three major operators, namely XL, Telkomsel and Indosat. The presence of the iPhone 3G will indeed be a challenge for its marketing here.
In fact, BlackBerry distribution is well established and it has a specific community of users who regard the gadget as part of their lifestyle.
XL director of commerce Joy Wahyudi said that the marketing prospects of BlackBerry were still very good because users considered it an inseparable part of their lives. "The price is undeniably quite high, but the quality is satisfying," she emphasized.
Apart from authorized distributors, BlackBerry's distribution is also through specific user communities. To expand its retail market, XL is cooperating with Erafone, which will sell the mobile phone. Currently, there are 11 Erafone outlets, 15 XL centers and seven XL Gadgets Stores that sell BlackBerry and Internet 3G-HSDPA XL. In the next few months, both the mobile phone and the Internet will be available at more than 30 Erafone outlets.
BlackBerry was introduced in Indonesia in mid December 2004 by Indosat and Starhub. Starhub is an affiliate of RIM. In Indonesia, through Indosat, Starhub provides technical services, while Indosat provides BlackBerry Internet Services and BlackBerry Enterprise Server.
Two other operators later entered the BlackBerry market, namely Excelkom and Telkomsel. Excelkom offers two services, Blackberry Internet Service (BIS) and Blackberry Enterprise Server+ (BES+). BES+ is a combination of BES and BIS, which is targeted at corporate customers who can receive and send office emails based on Microsoft Exchange, Novel Wise, Lotus Domino and 10 e-mail accounts based on POP3/IMAP via mobile phone. Meanwhile, Telkomsel only provides corporate services in the form of BlackBerry Enterprise Server.
Although now working together with iPhone 3G, Telkomsel still remains a business partner or operator for BlackBerry. Sarwoto Atmosutarno said, "We have an exclusive agreement with BlackBerry, so being an operator or business partner with another company is no problem."
