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Indonesia builds up wireless app market

Veronica C. Silva | March 10, 2011
Indosat, Alcatel-Lucent in tie-up for application incubator lab

MANILA, PHILIPPINES, 10 MARCH 2011 – Indonesia’s second largest operator, Indosat, has recently forged a partnership with Alcatel-Lucent that will encourage the development of wireless applications in the world’s largest archipelago and beyond.

lcatel-Lucent said in a statement that the partnership is in support of Indosat’s Application Incubator Program, which was launched late last year. Under the partnership, Alcatel-Lucent will provide the Indonesian developer community with network application programming interfaces (APIs). Based on these APIs, developers can come up with new applications which can be “nurtured” within the incubation program for possible marketability eventually.

The partnership will allow Indosat to deploy Alcatel-Lucent’s Application Enablement Technology, including the cloud-based developer platform, in its tablet application research and development laboratory at the Institute Technology Bandung (ITB), the largest and the most prominent technology-oriented university in Indonesia and located in West Java.

Indosat said its Application Innovation Program is providing opportunities for Indonesia’s developer community to participate in the mobile applications market in Indonesia and even worldwide.


Harry Sasongko, CEO & president director of Indosat, said what is crucial to the success of the program is access to information, resources and the ecosystem where innovation and entrepreneurship can be harnessed. “Partnering with Alcatel Lucent allows us to deliver network assets and tools to developers which will increase the functionality and power of their applications for distribution here and overseas,” added Sasongko.

Indosat said it is hoping to incorporate into their service offerings some of the wireless applications that can come out from the program as early as this year.

“By helping Indosat securely make its network available to developers as an application development platform, Alcatel-Lucent is helping it accelerate the creation and delivery of new wireless services’ to subscribers. Access to Indosat’s unique network assets will allow developer’s to build more powerful applications and expose them to larger markets,” said Frederic Chapelard, managing director, Alcatel-Lucent Indonesia.

Analysts said the partnership is significant given the large number of wireless subscribers in Indonesia and the fact that Indosat is one of major players in the country.

Market potential

Nicole McCormick, senior analyst, Ovum, told MIS Asia that the market potential for wireless applications in Indonesia is “enormous” as there is a low fixed line penetration in the country and WiMAX is currently sidelined at the moment.

“It makes good strategic sense for operators to work alongside the application community as localised content will be one of the keys to driving incremental revenue growth for mobile broadband operators,” added McCormick. “The Indonesian Big Three operators – Telkomsel, Indosat and XL – are very proactive and innovative in the application and related mobile broadband tariff space. “


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