This excerpt taken from the IIT 20-F filed Jun 29, 2005.
We believe our principal competitive strengths include:
Reputation as a premier telecommunications provider with a comprehensive range of telecommunications services. Our strong reputation among corporate and
retail customers for providing high-quality telecommunications solutions and customer service makes us a leader among Indonesian telecommunications providers. Combined with our comprehensive range of telecommunications
services, including cellular, fixed telecommunications and MIDI services, we offer our large customers the convenience of choosing one telecommunications
provider to create customized solutions to their telecommunications needs. Our long operating history, together with relationships with both Government organizations and large corporate entities, contribute to our visibility in the
telecommunications sector in Indonesia and abroad.
Strong cellular network and subscriber base to capture expanding cellular market. We had approximately 9.8 million cellular subscribers as of December 31, 2004, representing
an approximate market share of 32.5% as of that date based on available market data, placing us solidly in the second position in the Indonesian cellular services market. Through further expansion of our already extensive cellular network,
substantial spectrum allocation and extensive fixed-line, microwave and satellite backbone, we believe we are poised to benefit from subscriber growth in a cellular services market with low penetration and increasing affordability for consumers. In
addition, due to high growth potential in the Indonesian cellular services market and absence of mobile handset subsidies, we expect cellular subscriber acquisition costs to remain among the lowest in Asia and operating margins to remain stable. As
the Indonesian cellular services market matures, we believe that we will be able to serve distinct customer segments through the strategic positioning of our recognized brands and have taken steps to prepare for such branding efforts.
Strong cash flow with established market position and respected brand names. Our business segments generate strong recurring cash flow with relatively healthy operating
margins that we believe will remain stable as we expand and upgrade our cellular network through capital expenditures and the continued redeployment of existing cellular equipment. In addition to operational synergies associated with our merger with
our legacy subsidiaries, Satelindo and IM3, we believe coordinated cellular network development will improve our cash flow from cellular services and strengthen our financial position. Our ability to target diverse segments of the cellular market
through our Matrix and Mentari brands represents a competitive advantage among Indonesias cellular service providers.
Experienced and flexible management team. We have a seasoned and highly qualified management team, which created a leading integrated telecommunications provider in
Indonesia. We believe our management has the skills and experience needed to implement our strategic objectives related to our cellular services integration and expansion and has demonstrated its ability to adapt and lead during periods of
regulatory change. Our management team has consistently been recognized as one of the highest-ranked management teams in Indonesia.
Strong shareholder support and industry knowledge. A strong and experienced shareholder base supports our management team. Led by the Government and ST Telemedia, our
shareholders possess significant regulatory insight and regional telecommunications industry experience with a focus on the delivery of high-quality cellular services. We intend to continue to strengthen our working relationships with our
shareholders to continue to leverage their industry experience and technological expertise, thereby enhancing our position in the Indonesian telecommunications market.