Bakrie Telecom Prepares 100 Billion for Local Application Developer Incubation

In order to increase the passion of local developers making useful applications, Bakrie Telecom (BTEL) makes a breakthrough. No half-hearted, a 100 billion Rupiah (or U.S. $ 11.5 million at the exchange rate today) was waged in the form of incubation so that the developers (or by the BTEL term, technopreneurs) want to develop interesting and useful applications for the community that will be marketed through BTEL network.

This incentive is one of some BTEL visions as outlined in the Bakrie Telecom, Media, and Technology (BakrieTMT2015) campaign which was held in Blitzmegaplex, Grand Indonesia. BTEL is ready to issue the total investment of 5 trillion rupiah (around U.S. $ 575 million). This synergy is quite similar to the T.I.M.E concept developed by Telkom Indonesia, the largest telecommunications group's company in the country.

Beside the incubator, the investment funds will be used to improve the quality of data services through an AHA product (Hyperspeed Affordable Access), the launch of gaming mobile phone in collaboration with renowned game developer Electronic Arts (EA), and also BTEL as a  telecommunications company has the synergy with VIVA Group (media), and BCON as well as BNET as the technology companies.

There are also BTEL plans to spread the wings by registering mobile license. For CDMA networks, cellular licenses already owned by Smart Telecom and Mobile 8, which has become Smartfren now. With the cellular license, BTEL network users will be free to use their services in various areas without changing number.

Anindya Bakrie, President Director of BTEL, in his press release stated that BTEL realized that soon the majority of consumer activities in Indonesia will be done via cell phone. With substantial investments in 2009 and 2010, Anindya Bakrie mention that 40% of BTEL revenues in the future will be obtained from the data.

He further said that the transition from voice to data were in line with consumer trends in Indonesia which are increasingly using cell phones not only to communicate but also to work, study, seek entertainment and even for shopping. Surely it is not wrong to think that it takes a bigger incentive to get more applications which could accommodate the needs mentioned above.

The incubation concept itself, including a special company set up to deal with this, has not been described in detail yet in this event. Even so, the information we received mentioned that the funding is going to move in the area of  seed stage and early stage. Implemented for the next five years, the fund's commitment deserves two thumbs up because I myself was getting tired with the goals of those telecommunication company that wants to be the place where local developers can work on their creativity, a sort of app store, but do not have commitments (including funding) for a sustainable fostering.

Currently, based on the portfolio of an existing phone line, mostly Esia mobile phones have a Java base for its applications. However, with the opening of the BlackBerry service and the possible presence of Android-based phone series, there are wide-open opportunities for developers to reach various market segments. With a total of 13 million BTEL subscribers, this incubation solicitation would be difficult to resist.