Flexi Telkom and ESIA Bakrie Telecom plan to merge

Flexi Telkom and ESIA Bakrie Telecom plan to merge. That is the hot news of the telecommunication market in Indonesia right now. Telkom plans to merge the business unit FLEXY with ESIA Bakrie Telecom.  The merger will generate new affordable CDMA Telecommunication Company. FLEXY right now has about 15 million subscribers and Bakrie Telecom 10 million subscribers. The merger will produce a new CDMA Telecommunication Company that will have more strategic business to compete with GSM network. Telkom will spin off FLEXY to able to cooperate with Bakrie Telecom.

The merger will gain many benefits for both Bakrie Telecom and Telkom. We know that Bakrie Telecom is one of the telecommunication company in Indonesia which always presenting new fresh idea and innovation to the market. Bakrie Telecom has disruptive idea to any telecommunication service they create and as the result, we can find many telecommunication ideas and innovation from Bakrie Telecom in the market and responded well by market such as Value Added Service (VAS) on HP ONLINE, HP MUSIC, HP CONNECT etc which integrate famous social network such as Facebook, twitter and messaging tool (Yahoo messenger, Gtalk, WLM) into single low mobile phone

Meanwhile Telkom is the Telecommunication Company which has wide telecommunication infrastructures spread and covered many areas, rural and urban once. Telkom has strong fundamental of telecommunication infrastructures and the thing that Bakrie Telecom did not have. This situation can be utilized by both Bakrie Telecom and Telkom to have high innovation and supported by reliable network. The merger will be a good decision for both telecommunication companies

More over, right now there are more than 10 telecommunication companies in Indonesia and they should have high innovation and strong network to win the competition instead of cheap tariff to any telecommunication service they deploy

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