Cellular operators to invest US$1 billion this year<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The country's cellular phone operators are projected to invest
\nsome US$1 billion this year to expand their networks to meet
\ngrowing demand, according to the Indonesian Cellular Phone
\nOperators Association (ATSI).<\/p>\n
\"Most of the investments will be focussed on expanding
\nnetworks to set up new base transceiver services (BTS) and
\nupgrading short message services (SMS),\" ATSI chairman Rudiantara
\nwas quoted by Antara as saying over the weekend.<\/p>\n
The country's top five cellular phone operators are: PT
\nTelkomsel, PT Satelindo, PT Excelcomindo Pratama, PT Natrindo and
\nPT Indosat MultiMedia Mobile (IM3).<\/p>\n
Rudiantara said the funds would mainly come from the internal
\ncash flow of the operators, and added that some of the operators
\nplanned to sell their shares on the stock market to raise fresh
\nfunds to finance the investment.<\/p>\n
He predicted that the number of cellular users would continue
\nto increase this year, mainly in provinces outside Java. Today,
\n40 percent of the country's mobile phone users live in Greater
\nJakarta.<\/p>\n
The number of cellular phone users has been growing at double-
\ndigit rates during the past few years, and was expected to jump
\nto more than 8.5 million users by the end of 2002, from the
\nprevious 6.57 million.<\/p>\n
Rudiantara, however, said that revenue in the cellular
\nbusiness would slow down this year.<\/p>\n
\"Although the (number of) subscribers will grow by about 55
\npercent, the total revenue will only grow by 45 percent,\" he
\nsaid, pointing out the declining purchasing power of the people
\namid increasing fuel prices, electricity tariffs and fixed-line
\ntelephone rates.<\/p>\n
He predicted that industry revenue would reach Rp 20 trillion
\nthis year, or about 60 percent of the projected revenue for the
\ncountry's telecommunications industry.<\/p>\n
\"Voice services will continue to be the main contributor to
\nthe cellular revenue, and would contribute about 87 percent of
\ntotal revenues,\" he said.<\/p>\n
He added that the revenue from non-voice services, mainly SMS,
\nwould increase by 50 percent this year and contribute some 20 to
\nthe cellular revenue.<\/p>\n
Meanwhile, Wimbo Hardjito, director of Satelindo, said that
\nthe company would expand its network to other provinces outside
\nJava, such as to Sumatra and Kalimantan.<\/p>\n
He said Satelindo would set up new base transceiver services
\nin these provinces. Satelindo currently owns some 1,000 BTS
\nacross the country.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cellular-operators-to-invest-us1-billion-this-year-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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