France Telecom sees no reason to quit Indonesia<\/p>\n
JAKARTA (JP): France Telecom, a major shareholder of PT
\nPramindo Ikat Nusantara, would like to continue its cooperation
\nwith PT Telkom despite some \"differences\" with the state-owned
\ntelecommunications operator, the company's chairman said on
\nWednesday.<\/p>\n
France Telecom chairman and CEO Michel Bon said he saw no
\nreason why the existing cooperation with Telkom should be ended.<\/p>\n
\"I do not see clearly why it (the cooperation) should be
\nfinished; I think it has brought good things to Sumatra,\" Bon
\nsaid during a media conference.<\/p>\n
But Bon, who is in Jakarta on an official visit, acknowledged
\nthat low telephone rates in the country had become a major
\nproblem for Pramindo.<\/p>\n
Pramindo, which provides telephone services in Sumatra, is one
\nof five consortiums licensed by the government in 1996 to provide
\ntelephone services under joint operation schemes, or KSOs, with
\nTelkom.<\/p>\n
The other four consortiums are PT AriaWest International,
\nwhich operates in West Java; PT Mitra Global Telekomunikasi
\nIndonesia (MGTI) in Central Java; PT Dayamitra Telekomunikasi in
\nKalimantan; and PT Bukaka SingTel International, which operates
\nin eastern Indonesia, including Bali.<\/p>\n
Some of the world's largest telecommunications companies,
\nincluding America's AT&T, Britain's Cable & Wireless Plc.,
\nAustralia's Telstra, Japan's Marubeni Corp., Sumitomo Corp. and
\nItochu Corp, Singapore Telecom and Hong Kong's TM Communications,
\nare also involved as shareholders in the consortiums.<\/p>\n
The KSOs were due to end in 2010 but because of ongoing
\nconflicts between Telkom and its partners, the government has
\nagreed to a proposal to revise the collaboration schemes.<\/p>\n
Five options have been drawn up by Telkom and the government
\nto determine the future of the partnership arrangements.<\/p>\n
The five options include revising the existing cooperation
\nschemes and allowing Telkom to buy out the interests of the
\npartners.<\/p>\n
Bon said Pramindo could not yet decide on an option as the
\ngovernment had not settled the question of pricing.<\/p>\n
\"The price question would have to be settled first if we want
\nto look at the next step,\" he said.<\/p>\n
In response to the government's recent announcement it hoped
\nto increase telephone rates by 45.49 percent in stages over the
\nnext three years, Bon said he would like to know how the
\ngovernment would set the stages of the increase.<\/p>\n
If Telkom were eventually to choose to terminate Pramindo's
\ncontract, the company's operating debts would also have to be
\nconsidered, he said.<\/p>\n
\"Pramindo has debts in U.S. dollars and it is unclear how
\nTelkom could face such a debt, so let's see when it comes,\" Bon
\nsaid.<\/p>\n
If the KSO problem has not been settled by the end of the
\nyear, Pramindo will extend the deadline for resolving the
\nquestions by three months, he said, adding that it would also
\ndepend on the condition of the company.<\/p>\n
\"If Pramindo is desperate, then we will act desperately; if we
\ncan go on for the next three months then we will,\" Bon said.<\/p>\n
France Telecom owns 40 percent of the shares in Pramindo. The
\nother shareholders are Astratel (35 percent), Indosat (13
\npercent), Marubeni (8 percent), IFC (3 percent) and NMP Singapore
\n(1 percent).<\/p>\n
Bon is in Jakarta to introduce Jean-Marie Gauthier, who will
\nreplace Gilles Vaillant as managing director of Pramindo. (tnt)<\/p>",
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"sponsor": "Okusi Associates",
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