Almost 1.4m phone access line units installed in three years<\/p>\n
JAKARTA (JP): Five contractors from state telecommunications
\noperator PT Telkom announced on Saturday the installment of
\n1,371,548 access line units in the last three years.<\/p>\n
Contractors' spokesman D. Siregar, said the achievement
\nexceeded the three-year target of 1,268,000 lines agreed with PT
\nTelkom in January, 1996.<\/p>\n
\"This achievement underlines our commitment to fulfill our
\nresponsibilities, despite mounting challenges brought about by
\nthe prolonged economic crisis,\" he said during a workshop in
\nCipanas, West Java.<\/p>\n
The five contractors -- PT Pramindo Ikat Nusantara, PT
\nAriawest International, PT Mitra Global Telekomunikasi Indonesia
\n(MGTI), PT Cable and Wireless Mitratel and PT Bukaka Singtel
\nInternational -- installed the telephone lines under joint
\noperation schemes with PT Telkom.<\/p>\n
Siregar said the five companies invested about US$1.56 billion
\nduring the three years. About $567 million of the total
\ninvestment is cash equity, he said.<\/p>\n
Siregar said Rp 5.03 trillion or 45 percent of total revenue
\ncollected across five Telkom partners' units, was paid directly
\nto Telkom, while the partners received 20 percent of earnings.<\/p>\n
The five private contracts, awarded in January 1996, were to
\ninstall and manage two million fixed lines in West Java
\n(Ariawest), Central Java (MGTI), Sumatra (Pramindo), Kalimantan
\n(Daya Mitra) and areas in eastern Indonesia (Bukaka Singtel). The
\nmanagement contracts terminate in 2010.<\/p>\n
Siregar said the number of subscribers in the contractors'
\nregions currently totaled 2.57 million subscribers, meaning that
\nover one million subscribers have obtained telephone connections
\nin the last three years.<\/p>\n
He said that beside fulfilling the construction target for
\ntelephone lines, the five partners have been active implementing
\nvarious technology transfers through training, education,
\nresearch and development programs.<\/p>\n
The partners have endeavored to implement appropriate
\ntechnologies in order to improve operational efficiency, which in
\nturn would lead to benefits for consumers, Siregar said.<\/p>\n
The partners have also fulfilled their Universal Service
\nObligation in various villages within their regions, expanding
\nthe availability of telephone facilities.<\/p>\n
Siregar said the memorandum stipulated that their service
\nobligation would be realized if either five percent of capital
\nexpenditure was set aside to meet the obligation or 50 percent of
\nthe villages obtained access to telecommunications facilities.<\/p>\n
\"Partners has been successful to date in fulfilling government
\nobjectives for developing the Indonesian telecommunications
\nindustry. However, due to the current ongoing crisis, certain
\nchanges need to occur to be able to meet future development
\nneeds,\" he said.<\/p>\n
Some observers have complained that the joint operation
\nprojects were not satisfactory, resulting in Telkom inefficiency.
\n(gis)<\/p>",
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"sponsor": "Okusi Associates",
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