CHAPTER IV DATA ANALYSIS In chapter 4 we performed analysis using the feedback from the interviewed (IM2 Managements, IM2 customers, and non IM2 cust...
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In chapter 4 we performed analysis using the feedback from the interviewed (IM2 Managements, IM2 customers, and non IM2 customers) that were done before. The completeness of the interviewed can be seen in the appendix.

4.1 IM2 3.5G Broadband Services IM2 has many products in internet services, one of the products is 3.5G mobile broadband internet services, and it delivers high speed internet access through mobile modem. IM2 3.5G mobile broadband internet services product divided into two packages, which are Postpaid (Prime) and Postpaid (Broom).

1.1.1 Prime (PostPaid 3,5G) Prime is postpaid 3.5G services from IM2, with IM2 broadband via 3.5G wide coverage area can give customer/subscriber a comfortable internet connection up to 3.6 Mbps to compliment for customer / subscriber mobile lifestyle. Prime (Postpaid 3.5G) can be enjoy using the easy to configure PCMCIA or USB modem, with multiple access feature customer / subscriber can access the cyber world not only through 3.5G network but also CDMA, Hotspot and Dial up. There some packages for Prime (Postpaid

3,5G) service in IM2, like Echo!, Echo Fit!, You!, Pro!, and Max!, those packages were differentiated by price and speed of data transfer in accordance with what consumer / subscriber need. In the beginning of 2009, IM2 stop their two 3.5G Prime packages, which are Pro and Max, and run You and Echo packages only for IM2 3.5 mobile broadband Prime data package.

1.1.2 Broom (Prepaid 3,5G) Broom (Prepaid 3.5G) service from IndosatM2 is the first prepaid internet service in Indonesia, IndosatM2 now provide 2 choices of prepaid internet services in accordance with the needs of consumers. Broom Classic is a prepaid high-speed internet access based on 3.5G technology with the connection speed up to 3.6Mbps, consumer can access internet anywhere they want and gives consumer freedom from monthly bills. Broom Unlimited is a prepaid internet access over IM2 3.5G network that will give consumer a fix monthly expense for the unlimited expense for the unlimited internet connections, consumer can enjoy internet access speed up-to 256 Kbps until reach the usage quota of 2GB, then after that the speed will be decreased up-to 64 Kbps until unlimited volume of usage. Most of IM2 consumers are people who need mobile connectivity internet to support they works that need to be good in quality of internet connection and to supports their activities outside their

daily works like social network (Facebook, Mailing List, Forums, email, etc)

4.2 3.5 G Mobile Broadband Market Industry Analysis APJII official estimated the number of subscribers and users in the internet from 1998 until the end of 2007, the data can be seen in the table below: (

Table 4.1 Internet Data in Indonesia Years

































The growth of the internet industry in Indonesia has increased significant in last few years. The trigger that caused increasing in Indonesia internet industry

was the increasing of awareness and need among Indonesian people and corporation in Indonesia about internet. But on the other hand, the growth of 3.5G mobile broadband in internet industry in Indonesia is quite slow. The 3.5G technology start in Indonesia in 2006 but the market penetration of broadband industry in Indonesia is still low compare with the internet industry. Based on the data from we get from IM2 management that broadband industry penetration in national is only about 1% per year, that means if the internet user about 25 million people, than it is estimated the broadband internet users is only 25.000 people only. Beside that the gap between subscribers and users internet in Indonesia is still large, the comparison between subscribers and users in Indonesia is 1:13, so based on that data, the demand and the market for 3.5G mobile broadband industry is very large. The unfulfilled demand in 3.5G mobile broadband industry because only a few operators that provides the 3.5G mobile broadband internet services, because in the industry there are two elements that should be owned by a company who want to enter the 3.5G mobile broadband industry. The elements are the availability of infrastructure and permit that issued by KOMINFO (Departemen Komunikasi dan Informatika) to get the operator license, SIP license and the frequency license. The infrastructure is become the most crucial thing in mobile broadband industry, because to get the operator license, operators must owned the same infrastructure that telecommunication operators have. That’s why the only big telecommunication companies in Indonesia like Telkomsel, Indosat and Xl that dominated in 3.5G mobile broadband industries.

According to IM2, in the end of September 2008, the market share in 3.5G mobile broadband industry:

Figure 4.2 IM2 Market Share Data

4.3 IM2 SWOT Analysis 4.3.1 Strength: Strong Brand Name As the subsidiaries company of Indosat, IM2 (Indosat Mega Media) carry the big name of Indosat. Indosat is the second largest telecommunication providers in Indonesia that already established

in 1967, it already has a strong brand name and trusted among customers in Indonesia. Based on our interviewed we discovered that almost all people who don’t subscribes/use the IM2 3.5G mobile broadband internet knew the IM2 brand, although maybe not in term quality, like one of our correspondent quote “dulu yang saya tahu kalau mobile broadband itu IM2 yang tercepat koneksinya, tetapi bukan yang terbagus jaminan kualitasnya” (Mr.Morgan Andersen). And according to IM2 sales data, there are significant increased in customers data based, from 21.000 customers in 2007 up to 170.000 customers in 2008, this is include 54.000 IM2 Prime customers and 116.000 IM2 Broom customers in the year of 2008, seen from this data can be concluded that IM2 3.5G broadband mobile internet have a strong brand name. Good Reputation Among Customers In the 2006, IM2 is the first provider in Indonesia that provides 3.5G mobile broadband internet service. Since launched the IM2 3.5G mobile broadband, IM2 continue to develop their product quality, and in the 2007 IM2 issued 3.5G mobile broadband product that can be accessed using a wireless modem, and until the end of the 2008 IM2 already improve their product by released

their 2 option in 3.5G mobile broadband services, which are Prime and Broom. With the core competence in internet industry made IM2 can improve their quality of services in provided in the internet industry. Cost Advantage From Proprietary Know-How IM2 is a subsidiary of Indosat that has specific business in the field of internet service provider. With a separate structure with the parent company that engaged in the telecommunication field, making IM2 focus only on providing internet services. For almost 12 years (1996-2009) provided internet service made IM2 knew very well about the industry and what customers want or expected about internet services, in other word IM2 know the characteristics of internet users, especially in Indonesia. Because of that all expertise in the field of internet can make IM2 cost efficiency compared with the other internet service provider. Exclusive access to high grade natural resources IM2 has access to very large resource in the internet service provider 3.5G mobile broadband, IM2 using the Indosat BTS that located throughout the entire Indonesian region to provide internet services 3.5G mobile broadband, with all the access IM2 can provided and delivered they product in all Indonesian regions. Favorable Access to Distribution Networks IM2 has a good distribution network, this is obtained because IM2 besides using their own distribution channels, also using Indosat distribution network. With the Indosat distribution network, IM2 have advantage compare with other internet service provider. The advantage that IM2 have because with Indosat has experience in retail industry in this case is the telecommunication industry, and Indosat has very good distribution network spread in all parts of Indonesian regions.

4.3.2 Weakness: High cost structure In the internet industry the most crucial element is the infrastructure, IM2 only have a few of their own infrastructures to provide their internet services products. Almost all IM2 products using Indosat infrastructure, this is because to make a BTS transmitter require a lot of cost, this become problem to IM2 because according IM2, they only have limited bugged in developing their own infrastructures, and dependent to Indosat in infrastructures. If in the future all Indosat infrastructures that IM2 used already full capacity, then this will be a big problem that must be faced by IM2. Lack Access to The Best Natural Resources With at least infrastructure that owned by IM2, and almost only using Indosat infrastructures make IM2 depend of Indosat infrastructure. The disadvantage that IM2 will get is when occurs the damages/disable of the Indosat infrastructures and because of the dependency from Indosat infrastructure, if that happen it will affect all IM2 products in term quality (connectivity and internet speed).

4.3.3 Opportunities An Unfulfilled Customer Need The broadband demand in Indonesia is still very large, because the comparison of internet users and internet broadband subscribers is still large. According to IM2 data, the gap between users and subscribers internet in Indonesia is 1:13, and the broadband industry growth in Indonesia only about 1% in one year, so there are still huge demand that IM2 can fulfill or other internet services providers. Arrival of New Technology This day there is already new technology in internet, they called it WIMAX, the WIMAX technology is expected will become the new generation beyond 3.5G. WIMAX is based Wi-Fi internet

services that can reach a wider area compare with the existing WiFi technology now.

4.3.4 Threat Emerge of substitute products During this time there are not much substitute products choices that can be used for customers 3.5G mobile broadband, one of the 3.5G mobile broadband substitute product is the cable internet that provided by Telkom Speedy and First Media, a lot of people using this cable internet service because cable internet service is more stable and the network speed is much faster than the 3.5G mobile broadband. Regulation In the regulation area there some threat that IM2 might be faced in the future, if IM2 want to increase the frequency of their network capacity because the network has full capacity, IM2 need the permission from KOMINFO to increase the frequency of the network, the permission called secondary carrier license, according to IM2 usually the permit from KOMINFO takes a relatively long time, so while waiting the permit being approve from KOMINFO, what IM2 can only do is wait, and that can occur a bad effect to IM2 when need of the permit is very urgent to improve the quality of their product.

4.4 IM2 Competitor analysis 4.4.1 Telkomflash (Telkomsel) Established on 26 May 1995, Telkomsel is the leading operator is an Indonesia cellular telecommunication company, it is a subsidiary





Company). Telkomsel is the leading operator of cellular telecommunication services in Indonesia by market share. Telkomsel provides cellular services in Indonesia, through its own nationwide dualband GSM 900-1800 MHz, 3G network, and internationally, through 323 international roaming partners in 170 countries (end September 2009). In September 2006, Telkomsel became the first operator in indonesia to launch 3G services. Telkomsel has the largest network coverage of any of the cellular operators







approximately 95% of Indonesia’s population and is the only operator in Indonesia that cover all of the country’s provinces and regencies, and all counties (“kecamatan”) in Sumatera, Java and Bali/Nustra. The company offers GSM Dual Band (900&1800), GPRS, Wi-Fi, EDGE, and 3G technology. Telkom Flash is wireless internet services that provided by Telkomsel to all customers (Kartu HALO, Simpati and Kartu As). This






technology, that can produce download speed up to 3.6 Mbps. Telkom Flash offers new experience in connecting the network

with high speed internet and access location that can be done anywhere in the HSPDA/3G/EDGE/GPRS Telkomsel network. Telkom Flash: ( The Telkom Flash mobile broadband service can be enjoyed in 31 big cities in Indonesia. • Basic

: Up to 256 Kbps, monthly cost Rp.125.000,-

• Advance

: Up to 512 Kbps, monthly cost Rp.225.000,-

• Pro

: Up to 3.6 Mbps, monthly cost Rp.400.000,-

Why Telkomsel Flash? 1. Telkomsel is the largest telecommunication operator in Indonesia, which have the infrastructure that covers almost 95% of Indonesian population. 2. Telkomsel already establish 14 years ago, it has the experience in communicate their product in mass market, especially in telecommunication industry.

4.4.2 Indosat PT. indosat Tbk was established in 1967 as a foreign investment company to provide international telecommunications services in Indonesia, commencing its operations in 1969 with the inauguration of the Jatiluhur earth station. In the 1980, the Government of Indonesia acquired all of the shares of Indosat, which then became a State-Owned enterprise (SOE). In 1994, Indosat listed its shares on

the Jakarta Stock exchange, the Surabaya Stock Exchange and the New York Stock. Indosat is the second largest mobile operator in Indonesia. Indosat launched its 3.5G for the Jakarta and Surabaya regions in November 29, 2006. Indosat 3.5G in the intermediate generation of the 3G technology, which enables subscribers to enjoy better quality voice, video or high speed data/internet access of up to 3.6Mbps or around 9 times faster than standard 3G services. On December 15, 2006, Indosat has accepted 2 channels no. 589 and 630 on its 800 MHz frequency band to operate Local Wireless Fixed Telecommunication Network in Jabotabek area. Indosat will continue to expense local wireless fixed telecommunication services in Jabotabek are and continue develop cellular services throughout Indonesia. Indosat celluler customer has achieved 24.5 million and served with 10.760 numbers of BTS in all over the nation. Indosat: ( The Indosat 3.5G mobile broadband internet service can be enjoyed in 18 cities in Indonesia. a. Quota regular Package: Extra light

: 1.25G, monthly cost Rp.200.000,-


: 3G, monthly cost Rp.400.000,-

b. Unlimited Package: ISAT Medium

: Up to 1 Mbps, monthly cost Rp.300.000,-

ISAT Heavy : Up to 3.6 Mbps, monthly cost Rp.500.000,-

ISAT Super : Up to 7.2 Mbps, monthly cost Rp.1.500.000,Why Indosat? 1. Even Indosat is the parent company from IM2, the competition between the two companies still there, because basically IM2 and Indosat is different company. 2. Indosat is the second largest telecommunication provider in Indonesia, and Indosat also provide 3,5G mobile internet service.

4.4.3 XL (Excelcomindo) PT.Excelcomindo Pratama Tbk (XL) was founded on 6 October 1989, under the name PT. Grahametropolitan Lestari. Its main business was in trading and general services. Six years later, the company setting up cooperation with Rajawali Group and three foreign investors (NYNEX, AIF and Mitsui), and its name was changed to PT.Excelcomindo Pratama, with the provision of basic telephony services as its core business. XL commenced commercial operations in 1996, primarily covering Jakarta, Bandung, and Surabaya areas. XL becomes the first private company in Indonesia that provide cellular mobile. XL provides services for retail customers and offers business solutions for corporate customers, including







telecommunications services. XL operates its network with GSM 900 DCS 1800 and IMT-2000/3G technologies. XL also holds a Closed

Regular Network License, Internet Service Provider (ISP) license, Voice








interconnection Service License (NAP). ( Why XL? 1. Have experience more than 10 years in telecommunication industry








telecommunication industry. 2. Have sufficient infrastructures in 3.5G mobile broadband industry.

4.5 Industry Condition and Rivalry There are 5 factors to be reviewed in analyzing conditions of existing competition in the theoretical Five Competitive Forces of Michael Porter, which are the rivalry in industry, Powerful customers, Powerful supplier, threat of substitute products, and threat of potential entrants.

4.5.1 Rivalry in Industry In 3.5Gmobile broadband industry, the IM2 direct competitors come from Telkomsel, Excelcomindo (XL), and Indosat (even though Indosat is the parent company of IM2, but it is still considered as competitor in the market). The competition in 3.5G mobile broadband internet service is not already hyper competition, and that can be opportunities for IM2 to expanding their market share in 3.5G mobile broadband internet industry.

4.5.2 Powerful Customers In the 3.5G mobile broadband industry switching cost for customers are relatively quite small. A line with the increase number of modem that can use all mobile broadband services from all operators, on average each mobile modem cost about Rp.1.200.000,- freely sold in the market, and with average starting package for 3.5G mobile broadband service around Rp.200.000,- until Rp.300.000,-, consumers can easily switch from one operator to other operators. In term of information, in determining the choice of 3.5G mobile broadband internet services, the information that customers need is available very good now days, like the availability of TV commercial about 3.5G mobile broadband, and operators these day also provided consumer with a interactive website, so the customers can really find the information they need. In addition because the increasing of internet users, now these day consumers can visit forum, blog, or joint mailing list to exchange information they need about the 3.5G mobile broadband internet services. Regarding this market condition, IM2 should consider some strategies which is increasingly the IM2 brand value by increasing the quality of IM2 3.5G mobile broadband internet services with widening the frequency of 3,5G bandwidth, because in our interviewed the only matter to consumer in internet services are only the connectivity and the speed of internet services, and if IM2 can provide those two factors

it will made the IM2 brand more trusted and increasing the value of IM2 brand itself. With increasingly the IM2 brand value, IM2 can avoid price war if the industry is become hyper competition.

4.5.3 Powerful Suppliers Currently the IM2 modem 3.5G hardware suppliers are ZTE and Huawei, in the early of launched IM2 3.5G product to Indonesian market, the dependency of suppliers big enough, because at that time the technology of modem 3.5G was not in the market yet, and still quite rare. But now with the developing of 3.5G market in Indonesia, it reduced the dependency of supplier, because the main business of IM2 is not sell modems, and many 3.5G modems already freely sold in the market. In addition, IM2 have suppliers in term the provision of infrastructure and USIM card, which is Indosat. Indosat have full bargaining power of supplier in determine the availability of infrastructure and USIM card used by IM2. This because IM2 is Indosat subsidiary and using almost entire Indosat infrastructure to run business and to produce USIM card. So the dependency IM2 to Indosat in term infrastructure is very large until now. For the supplier for modem3.5G hardware currently IM2 have a lot of options, while for IM2 the alternative supplier for infrastructure are the operators that owned 3.5G network, such as Telkomsel, and XL. But in reality, not that simple to get those suppliers, because there are many

aspects that must be considered very carefully in choosing those alternative infrastructure supplier, not only in level business only, but also the group strategy and the image of Indosat Group as a whole.

4.5.4 The Threat Of Substitute Products The tendency for customers to switch from IM2 to other products / substitute products is still small, because at this time beside IM2, only big operators that can provides the 3.5G mobile broadband internet service, such as that provided by Telkom Flash, Indosat 3.5Gm and XL 3.5G, so the consumer choice about 3.5G mobile broadband internet services is not many. In broadband industry especially in Indonesia we considered that there is another additional product beside the 3.5G mobile broadband internet that can be substitute of IM2 3.5G mobile broadband internet services, it is the cable internet services. The cable internet is other product choice that many consumers considered to have it beside the 3.5G mobile broadband, and sometimes according to our interviews if consumers already have the cable internet services, they tend to reluctant to have 3.5G mobile internet service if there is no urgency to it. The biggest cable internet service, or in other way the most cable internet services that become people preference according to our interviews are Telkom Speedy (Telkom) and FastNet (First Media). But compare with IM2 there still no good substitute product that can replace the mobility of 3.5G mobile broadband internet services. And

the other substitute like the cable internet services, will not compete to IM2 in term coverage area, because it will cost a lot in infrastructure if their want to compete in delivering internet service using wire/cable network.

4.5.5 Threat of Potential Entrants. In the 3.5G mobile broadband industry the entry barriers of new competitors is high despite the demand in this industry is still large, but the barrier in this industry is very high, because there are factors that should be owned by a company who want to enter the 3.5G mobile broadband industry. Those factors are the availability of infrastructure and permit issued by KOMINFO (Departemen Komunikasi dan informatika) to get the operator license, ISP license and frequency license. Unfortunately the availability of infrastructure and operator permit become the most barriers to entry, because to get the operator license, the infrastructure that must be owned by new operator company is must be the same to infrastructure that telecommunication operator have, and that cost a lot of investment, so it is very difficult and very expensive to new company entering the 3.5G mobile broadband industry. That’s why only big telecommunication companies in Indonesia like Telkomsel, Indosat, and XL that dominated in 3.5G mobile broadband industry. But still there is a small potential threat from new entrants for the 3.5G mobile broadband industry that dominated by big telecommunication

companies, even though many new entrants in broadband industry are small companies, but they can become potentials entrants if they collaborate into one big company that can offered more value to consumers.

4.6 Servqual Gaps In providing 3.5G mobile broadband services to customers, IM2 face some gaps that appear, it might reduce the quality of IM2 service to customers. Those gaps are:

Figure 4.3 IM2 Servqual

4.6.1 Gap 1: Gap between IM2 Perception and Service Expectation From IM2 Customers. •

The mobile principle that in IM2 management perception is different from the customers perception, the customers not mobile but more nomadic (migrate from one place to another).

Customer’s perception from IM2 3.5G mobile broadband is more to speed. •

“Itu adalah tagline awal IM2, waktu dulu pernah memakai itu, tapi ketika kita masuk ke industri retail tagline itu diganti, karena Broadband Anywhere ini sudah banyak operator lain yang mengaku broadband, seperti Indosat, Telkomsel, memakai broadband. Jadi sudah banyak yang memakai broadband, IM2 tidak ingin menjadi bias (saru), hal ini juga karena kita yakin broadband itu sudah melekat kepada IM2, maka oleh sebab itu kita berani






Management, Mr. Adi Siswanto).

4.6.2 Gap 2: Gap between Management and Quality from 3.5G Mobile Broadband. •

The decreasing of quality and connectivity IM2 3.5G mobile broadband after management decide to launch the Broom prepaid package.

Technically less control about the comparison of the quality and speed that need between Prime (postpaid) and Broom (prepaid), only supervised in general. - “Meskipun tidak secara langsung tetapi iya, karena di sisi jaringan saat ini kami tidak bisa membedakan kualitas masingmasing produk yang ada, dan dengan keterbatasan jaringan maka speednya akan turun. Itu yang menyebabkan pelangganpelanggan kita agak komplain, karena dulu mereka dapat 2 Mbps sekarang mereka hanya mendapat 800-500 Kbps. Ini merupakan fenomena yang sama di bisnis seluler, biasanya untuk kondisi-kondisi seperti ini kita melakukan program retention, yang sifatnya langsung ke pengguna Prime, kita mencoba melakukan entertain pelanggan-pelanggan yang terganggu dengan keadaan jaringan yang sangat penuh. Masalah dengan jaringan ini juga dialami oleh competitor, seperti Telkomsel Flash. (IM2 management, Mr. Adi Siswanto).

4.6.3 Gap 3: Gap between Technical and Service Delivery of IM2 Management. • The full capacity is considered as consequences by management with the changing way of corporate sales to retail. - “Di Jakarta hampir menjangkau 45-60% traffic Jakarta itu untuk yang HSDPA, kalau 3G untuk 384Kbps itu hampir 100%, paling padat saat ini setelah IM2 meluncurkan Broom

Unlimited cukup merata jadi sekitar 10%-20%, jadi kalau di Jakarta Barat itu di Kapuk, daerah Kebun Jeruk, kemudian di Roxy, di utara ada di Sunter dan sekitarnya itu penuh, kalau di Selatan itu ada Pondok Indah, Bintaro, Tebet, rata-rata kebanyakan penuh, terutama malam hari, bisa dikatakan kompalin tertinggi di malam hari. Dengan dilundurkannya Broom unlimited peningkatan pelanggan (subscriber) sangat tinggi, itulah yang menyebabkan kenapa jaringan kita penuh sekarang,





pembangunan infrastruktur, pemancar dan meminta untuk menambah frekuensi/kapasitas frekuensi. Selama masih ada frekuensi yang dapat tersedia maka kita akan pakai, apabila sudah penuh maka akan kita tambahkan lagi fekuensinya.” (IM2 management, Mr.Adi Siswanto).

4.6.4 Gap 4: Gap between Service Delivery, Service Quality and Internal Communication. • IM2 transformation from corporate market to retail market made some change in way of work from IM2 internal company. - “Yang pertama pastinya adalah infrastruktur. Yang kedua bisa disebut kendala bisa juga disebut sebagai challenge/tantangan, yaitu limited budget, limited budget yang berhubungan dengan promotion dan itu menurut saya adalah tantangan bukanlah suatu kendala. Tapi memang ada beberapa program yang

awalnya di rencanakan, dengan kondisi ekonomi seperti ini maka harus di batalkan, tapi itu menurut saya justru peluang kita lebih kreatif lagi bagaimana program itu tetap berjalan tapi dengan cara yang lain. Yang ketiga menurut saya adalah transformasinya (dari corporate ke retail) sendiri menurut saya belum optimal/maksimal, belum menemukan keserasian, bahkan saya sendiri dibesarkan oleh karakter corporate, IM2 sendiri dari segi kompetensi masih belajar, masih banyak orang-orang IM2 yang dibesarkan oleh culture corporate belum 100% berubah ke karakter retail. Tapi dengan hasil yang sekarang kita sudah dapat terlihat kalau IM2 sudah mulai berubah.” (IM2 management, Mr. Wahdy).

4.6.5 Gap 5: Gap between Services that has been Given to Customers and Customer’s Perception to the Services. •

Added features that less useful for the customers, in the retention programs.

Low level of customer’s loyalty, so this might affect the decreasing image of other IM2 products.

The after sales service, which is customer services, we found out that according our interviewed that the response from customer services via IM2 telephone slightly less satisfying customers, but in the IM2 gallery is considered as satisfactory.


“Saya biasanya berhubungan dengan customer service via telepon, biasalah mereka sudah mempunyai SOP sendiri apabila menjawab pertanyaan menurut saya itu paling basic, dan saya pernah coba ke IM2 di kantor IM2 di simatupang, customer service di situ lumayan bisa membantu apabila ada masalah, dan pernah PCMCIA saya rusak masih dalam garansi lalu saya balik ke IM2 dan langsung diganti dengan yang baru”. (IM2 customer, Mr.Edianto).

4.6.6 Gap 6: Gap between External Communications to Customer Interpretation. • The postpaid customers feel disappointed because their bandwidth portion is used by prepaid customers, and the less explanation from IM2 management about this problem. • There still people that work in IT (Information Technology) industry that don’t know about the IM2 3.5G mobile broadband, even the 3.5G technology itself. -

“Kalau modemnya mahal atau tidak gratis. Ini butuh modem apa sih? Kalau pakai handphone pun tidak bagus saja handphone dijadikan modem.” (Non IM2 customer, Mrs. Annisa).

4.6.7 Gap 7: Gap between Customer’s Perception of IM2 Service






Communication against Customer’s Experience with IM2 Product. • Customers perception about IM2 3.5G is different with the actual service delivery from IM2. • The changed in principle from “Speed” to “Mobile” (Connected Anywhere), there is a lot customers still in old IM2 perception which is “Speed.” - “Selain dari kecepatan dan harga after sales service itu pasti di cari, sedangkan kalau after sales service saya pernah ada masalah sewaktu menggunakan IM2 dan ketika saya telepon ke IM2 agak lama responnya, harusnya mereka lebih cepat menanggapi konsumen.” (IM2 Prime customer, Mr.Septo).

4.7 Servqual Analysis From the gaps that we describe above, we perform gap analysis about IM2 services, the results of our analysis are:

4.7.1 Gap 1 The perception of the company's about IM2 3.5G Mobile Broadband products. IM2 in the beginning, when their network traffic still smoothly, they made the IM2 3.5G tagline about “Speed” (Broadband

Anywhere) which in that time was still very relevant. But when the sales increased, which was when the IM2 3.5G Broom mobile broadband launched, the IM2 bandwidth is much been taken for the Broom network, it mixed up the IM2 Prime and IM2 Broom bandwidth without any application that can separated them. After that happened, IM2 replaced the company’s tagline to “Connected Anywhere,” this step actually good for the company, because it was the purpose of the IM2 3.5G products which is mobile anywhere (can use anywhere), but for the current customers especially the older customer (IM2 first customers), their perception and promise about IM2 which is “Speed” was already stuck in their mind, this caused a dilemma for them because they already recommended IM2 to their colleagues/friends that IM2 3.5G mobile broadband has a high speed connections.

4.7.2 Gap 2 IM2 need to apply application or bandwidth tools management to control the network traffic, this application or tools can make them separate between Prime and Broom customers, so in the end the customers will feel that they get what they pay for. The network traffic in Prime (postpaid) customers was took by the Broom (prepaid) customers, this because the prepaid customers is more much than the postpaid customers. This is really a dilemma faced by IM2, because they have to maintain they two customers, which are

postpaid and prepaid, on the other side postpaid customers is a fixed customers for IM2, because they used the fixed contract system, IM2 must maintain them for get a fixed profit, meanwhile the prepaid customers that more much in number than postpaid but without fixed contract s still a profit for the company.

4.7.3 Gap 3 Infrastructure is very crucial in the development of internet business, even with the limited budget and access to infrastructure, but at least IM2 be able to add capacity to fulfill the demand from existing customers. Because of the large population in Indonesian, that is mean many more market that can IM2 penetrated. With the good infrastructure and the additional of network capacity will support the sales of IM2 3.5G mobile broadband.

4.7.4 Gap 4 The transformation that IM2 made from corporate market to retail market was too rashly, that made the company don’t have enough time to changed perfectly to fully enter the retail market, this can be seen from the absence of customers satisfaction survey for all IM2 3.5G mobile broadband customers. Although in the distribution area, IM2 already established a fine system.

4.7.5 Gap 5 Based on interviewed with Prime and Broom customers, some of them using the IM2 3.5G mobile broadband because there is no other choice, so this allow them that don’t have choice in internet service to become the potential customer to IM2. Customers who lack internet access above some of them is also not yet know about the IM2 3.5G products, the company should be able to accommodate knowledge in features form to customers who lack internet access. As this far the features that already provided by the company’s is not very impressive for the customers, because according to customers the most important thing is the access quality rather than other features. But still company can develop new features or existing features in accordance match with the customers need, this maybe need survey / interviewed in order to get the customers insight to developing the features that customers really need.

4.7.6 Gap 6 Benefit for the IM2 as pioneer in 3.5G technology and as a market leader is the responsibility to educating peoples about what is the IM2 3.5G mobile broadband. IM2 good name can give guarantee that can make IM2 is more valuable than the other 3.5G mobile broadband internet service providers, this can make people trust the IM2 services.

In the communication side IM2 feel that they already clearly provide the information, didn’t lie to the customers and public. But according to our interviewed IM2 need to increasing their communication and promotion because there is still many people that using IT in their daily work didn’t know about IM2 3.5G mobile broadband service.

4.7.7 Gap 7 The customer’s satisfaction about IM2 3.5G product according to our interviewed was not very good, because lately the IM2 3.5G quality is dropped because the full capacity and many customers disappointed and feel the actual services and promises that IM2 given to customers is not the same / does not meet the customers expectation. In the customer’s services side, IM2 fell that they already develop the best IM2 customer service to support their after sales service to customers, but on the customer’s experience according to our interviewed there is still much more lack from the customers service that need to be improve in the future.