Telkom pitch puts Bates/Mindshare and Euro RSCG/MPG on alert

Telkom (PT Telekomunikasi Indonesia), one of Indonesia’s largest telcos, is believed to have issued an RFI as part of a full-service pitch, with as many as 20 agency pairs reported to be participating in the review.

The creative incumbents for the account include Bates and Euro RSCG, while the media incumbents are Mindshare and MPG.

Bates and Mindshare won a piece of the business last year, while Euro RSCG and MPG have been handling another part of the business for a longer spell. Telkom’s last pitch was via an e-auction.

The current pitch is part of a statutory review periodically held by Telkom. Usually Telkom reviews have been conducted on an annual basis. However, the company has not held a review for the past two years.

Telkom is a semi-privatised company in which the Government holds a majority stake. It currently holds a monopoly on local and long-distance telephone services in Indonesia. Telkom has 15 million fixed phone users and 50 million mobile phone users.

The country’s fixed-line penetration is low at around 12 per cent as of early 2009. However, its mobile market has been developing at an annual rate of close to 50 per cent this year. The total mobile subscriber base had passed 130 million by January 2009, up from 12 million just six years earlier.