3G Services Considered Product Failure

Despite two years of presence in Indonesia, 3G services are not widely used consumer video calls and mobile TV. 3G is only used data access Internet services. Does one side of 3G is the product fails?

Sales Manager of Internet Business XL, Handono Warih said growth in 3G customers outside the data access is not fast. Users of less use 3G features to make video calls, or to watch TV.
While high growth occurred for customers who use 3G for data access. "Therefore, next year we will increase the use of 3G for data access," said Handono.

Handono mention the economic situation also led to the 3G subscriber growth slows. But there are still segments of our society that are affected, especially customers who prioritizes life-style, still make use of 3G services for video calls.

Chairman of the Indonesian Telematics Society (Mastel) Mas Wigrantoro RS said, 3G is not exactly the product fails. The fact the 3G market has not been widely consulted, because the operator organizers have not managed to build innovations that could stimulate demand for those services.

"Space and time to market 3G services have not obtained the proper moment. For it is necessary to create the right moment. Technology as good as any, will stay and remain as a technology that does not sell, if when entered into the commercial phase, marketers are not able to create demand and the moment right, "he said.
Less intensive service to educate its customers and prospective customers can be the cause of 3G is less popular. According to Mas Wig consumer education has not been a priority operator.

Moreover, not all telecom operators who pocketed a 3G license in compliance with commitments contained in the development of modern licensing contract with the government.

Mas Wig rate it could happen because of internal factors, such as still focus on 2G, or source of funds for investment are not yet available. Moreover, because there are other strategies, such as waiting for the right moment to start offering 3G services. In this condition the operator to choose as a follower rather than a first mover.

"For external factors, market demand can still be met with 2G services, while demand for 3G has not seen large enough. So as if the investment is spent to build 3G networks, companies will experience cash flow difficulties," he added.

Mas Wig also said operators could seek new markets outside Java to increase the use of 3G. But it need not be driven by the government. When markets outside Java provides a great benefit, the operator would have to exist.

Members of the Indonesian Telecommunications Regulatory Body (BRTI) Heru Sutadi said the tariff 3G service not as a cause of public interest towards the service was less than the maximum. He said the community is enthusiastic about the operator tariff. "Now with the USD 100 thousand was unlimited," he said.

Heru enthusiasts add to 3G does not do video calls or mobile TV but more to the data. He believes the future will more and more demand, because people, especially the upper middle class, educated and in urban areas who want to continue to connect the internet on the move.

Compared to overseas, according to Heru, Indonesia is quite advanced in 3G. Only problem, the frequency of which there are not sufficient for additional users.
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