Cellular phone services gain footing in C. Java<\/p>\n
JAKARTA (JP): The growth in demand for fixed telephone lines
\nin Central Java has started to decline as cellular facilities
\ngain popularity with the local people.<\/p>\n
President of PT Mitra Global Telekomunikasi Indonesia (MGTI),
\nEddy Hadijanto, estimated here yesterday that the slower growth
\nin demand would continue.<\/p>\n
\"The growth rate of the demand for fixed telephone facilities
\nwill go flat in the next two or three years,\" he told reporters.<\/p>\n
MGTI is one of five private firms to be awarded by the
\ngovernment 15-year concessions to develop 2.2 million telephone
\nlines in five different regions. MGTI is responsible for
\ninstalling 400,000 new lines in Central Java, including
\nYogyakarta, between January 1999 and March 1999.<\/p>\n
Under a joint operation contract with state-owned PT Telkom,
\nthe company is also allowed to operate and manage the network,
\nincluding the existing lines, until December 2010.<\/p>\n
Hadijanto said his company was also considering entering the
\ncellular services market to take advantage of the growing demand
\nfor mobile telephones in the province.<\/p>\n
\"We are participating in the cellular tender. Cellular
\nservices have become important in telecommunications.\"<\/p>\n
He hoped MGTI could win a license to operate the Personal
\nCommunication Network (PCN).<\/p>\n
The government is evaluating participants for the tenders of
\n11 PCN licenses which includes the Digital Cordless System (DCS-
\n1800) and the Personal Mobile Phone Service (PHS).<\/p>\n
The 11 licenses consist of six regional licenses to operate
\nDCS-1800 in Sumatra, West Java, Central Java, East Java,
\nKalimantan and the eastern areas and five regional licenses to
\noperate PHS in Sumatra, West Java, Central Java, Kalimantan and
\nthe eastern islands.<\/p>\n
\"Cellular services will support MGTI's business,\" Hadijanto
\nsaid.<\/p>\n
At present, the country's seven mobile cellular telephone
\noperators run three different systems. The Nordic Mobile
\nTelephone system is operated nationally by PT Mobisel, the Global
\nSystem for Mobile Communications (GSM) is operated nationwide by
\nPT Satelindo, PT Telkomsel and PT Excelcomindo, and the Advanced
\nMobile Phone System is operated regionally by PT Metrosel, PT
\nTelesera and PT Komselindo.<\/p>\n
Among the cellular operators, GSM providers can launch their
\nservices nationwide.<\/p>\n
Satelindo currently has 385,000 users including 10,000 in
\nCentral Java and Yogyakarta, Excelcomindo has 112,000 users
\nincluding 900 in Central Java and Yogyakarta while Telkomsel has
\n430,000 users, of which about 35,000 are in Central Java and
\nYogyakarta. Mobisel has 30,850 users, 341 in Central Java and
\nYogyakarta.<\/p>\n
MGTI's commissioner, D. Siregar, said the purchasing power of
\nthe Central Java population was expected to increase in line with
\nthe estimated improvement of the per capita income in the
\nprovince.<\/p>\n
\"There are 35 million people in Central Java, including
\nYogyakarta. Current telephone density in the region is just 0.9
\nfor every 100 people. We expect the rate will reach five per 100
\npeople by 2000,\" he said.<\/p>\n
MGTI's project in Central Java is estimated to cost about
\n$446.2 million. The company has won a $480 million loan
\nsyndication to finance its project.<\/p>\n
Hadijanto said MGTI had installed 146,090 lines by the end of
\nthis month, 100,000 of which were technically approved by the
\ngovernment yesterday. (icn)<\/p>",
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"sponsor": "Okusi Associates",
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