Foreign telecoms operators eye RI<\/p>\n
By I. Christianto<\/p>\n
JAKARTA (JP): A number of overseas global satellite
\ntelecommunications operators are seeking alliances with local
\ncompanies in order to tap into the country's telecommunications
\nsector.<\/p>\n
Most of them plan to launch services using either medium-earth
\nor low-earth-orbit (LEO) satellites, some as early as the year
\n2000.<\/p>\n
Among the Global Mobile Personal Communications by Satellite
\n(GMPCS) players attracted to enter Indonesia are Globalstar;
\nOdyssey Telecommunications International Inc; Intermediate
\nCircular Orbit (ICO) Global Communications, developed by
\nInternational Maritime Satellite (Inmarsat); the Afro-Asian
\nSatellite Communications; Asia-Pacific Mobile Telecommunications
\nSatellite; Ellipso; Global Communications; Signal; Marafon;
\nOrbcomm; Spaceway; Teledesic; and Telesat Mobile Inc.<\/p>\n
Indosat's president Tjahjono Soerjodibroto said last week that
\nhis company was negotiating with Globalstar of the U.S. to
\noperate ground stations in Indonesia.<\/p>\n
He said other GMPCS operators seek cooperation with Indosat in
\nan attempt to expand their dealings to Indonesia.<\/p>\n
According to existing regulations, foreign GMPCS operators are
\nallowed to operate in Indonesia only under joint operations,
\njoint ventures or joint-management agreements either with
\nIndosat, which runs the international telecommunications
\nbusiness, or with PT Telkom, the provider of domestic
\ntelecommunications services.<\/p>\n
Cost is the major competitive edge among operators. Iridium
\nreported that the cost would be US$3 per minute including the
\nspace segment fee, gateway fee and local operators fees.<\/p>\n
ICO reported it did not intend to provide service to very poor
\npeople. The company has compiled user group gradings, such as the
\nhigher income bracket, mining sector and airlines. The rate per
\nminute is variable and less than $1.<\/p>\n
Odyssey claimed the price could be reduced if operators could
\nimprove efficiency in the frequency spectrum. It means the price
\nwould depend on bandwidth.<\/p>\n
Indonesia's telecommunications industry has grown rapidly in
\nrecent years. The country has a number of satellites, with some
\nof them operated commercially.<\/p>\n
Indonesia will also adopt a regional satellite-network digital
\ntelecommunications systems prepared by PT ACeS which is equally
\nowned by PT PSN of Indonesia, PLDT Co of the Philippines and
\nJasmine International Public Co Ltd of Thailand.<\/p>\n
Other domestic firms recently signed cooperation agreements
\nwith foreign GMPCS companies.<\/p>\n
Indosat has set up a subsidiary called PT Indokomsat Lintas
\nDunia to provide ICO services and facilities. Indosat spent
\n$12.87 million to acquire a 1.41 percent stake in ICO. The 10-
\nsatellite system is expected to be begin service in 2000.<\/p>\n
The ICO system will permit mobile voice and data
\ncommunications through a hand-held telephone anywhere in the
\nworld -- on land, sea or air.<\/p>\n
Another firm, PT Citra Sari Makmur, a private value-added
\ntelecommunications provider which is 25 percent owned by Telkom,
\nhas been appointed by Constellation Communications Incorporated
\n(CCI) of the U.S. as a service provider in Indonesia and
\nSoutheast Asia.<\/p>\n
CCI is a consortium of Bell Atlantic International, a U.S.
\ntelecommunications giant, E-System Raytheon and Space Vest. CCI
\nplans to operate the Equatorial Constellation Communications
\nOrganization (ECCO), a $550 million satellite-based
\ntelecommunications service using 12 LEO satellites.<\/p>\n
The first launching is scheduled for the second half of 1999,
\nwhile ECCO's commercial operation will commence in early 2000.<\/p>\n
Telecommunications sources said the privately owned PT
\nSatelindo had also participated in Odyssey and Iridium.<\/p>\n
Odyssey, set up by TRW of the U.S. Teleglobe of Canada, will
\nbegin services around the globe by 1999. The system will use 12
\nsatellites in the medium-earth orbit and seven earth stations
\nwith the first satellite to be launched in 1999<\/p>\n
The Odyssey system, involving an investment of $2 billion,
\nwill use medium-earth orbits for its satellites,<\/p>\n
Iridium, initiated by America's Motorola plans to develop
\nanother system called Iridium, at a cost of $4 billion, using 66
\nLEO satellites.<\/p>\n
Satelindo intends to sign agreements for the two projects
\nsoon.<\/p>\n
Globalstar<\/p>\n
An executive of Globalstar, David C. Benton, told The Jakarta
\nPost that his company had secured a slot in the Indonesian market
\nas one of the company's shareholders, AirTouch Communications,
\nhad signed an agreement with Jakarta-based firm PT Intidaya
\nSistelindomitra.<\/p>\n
Based on the agreement, AirTouch, a leading wireless
\ncommunications company based in San Francisco, California, and
\nIntidaya will offer Globalstar services in Indonesia.<\/p>\n
AirTouch and Intidaya, a private Indonesian telecommunications
\noperator, will apply for a license and establish operations to
\nsell Globalstar services in Indonesia.<\/p>\n
Intidaya, 25 percent owned by Telkom, will have primary
\noperating responsibility, while AirTouch will be responsible for
\ntechnical and marketing functions.<\/p>\n
Globalstar is a low-earth-orbit satellite-based
\ntelecommunications system that will offer low-cost, high quality
\nglobal telephony, data, fax, and position location services to
\nareas currently underserved, or not served by existing wire-line
\nand cellular telecommunications systems.<\/p>\n
Globalstar will operate 48 satellites, with the first four
\nsatellites scheduled for launching later this year. The firm aims
\nto commence commercial operations in 1998.<\/p>\n
AirTouch, with a 6.4 percent stake, has exclusive service
\nprovider rights for Globalstar in the U.S., Indonesia and nine
\nother countries.<\/p>\n
Globalstar has been designed so that all calls, including
\ninternational calls, enter Indonesia's existing terrestrial-based
\ninfrastructure from the local Globalstar ground-based gateway.<\/p>\n
This gives existing service providers additional revenue
\nopportunities, and permits local regulatory authorities to
\nexercise their accustomed degree of regulatory control.<\/p>\n
Users make or receive calls using hand-held or vehicle-mounted
\nterminals similar to today's cellular telephones. Because
\nGlobalstar will be fully integrated with existing fixed and
\ncellular telephone networks, Globalstar's dual-mode handset units
\nwill be able to switch from conventional cellular telephony to
\nsatellite telephony as required.<\/p>\n
In remote areas with little or no existing infrastructure,
\nusers make or receive calls through fixed-site telephones similar
\nto either phone booths or ordinary wire-line telephones.<\/p>\n
Globalstar, based in San Jose, California, is a limited
\npartnership led by Loral Space and Communications, Ltd, of New
\nYork City. Along with cofounder Qualcomm Inc of San Diego,
\nCalifornia, the partnership includes 10 of the world's leading
\ntelecommunications service providers and equipment manufacturers.<\/p>",
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"sponsor": "Okusi Associates",
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