Indosat to expand into cellular business<\/p>\n
JAKARTA (JP): Publicly listed international telephone operator
\nPT Indosat expects to expand its business into the wireless
\ncommunications service next year, the company's senior executive
\nsaid here on Friday.<\/p>\n
Executive vice president for corporate development Budi
\nPrasetyo said Indosat would provide mobile telephone service
\nunder the GSM 1800 format.<\/p>\n
Budi said that the company will initially launch the new
\ncellular service in the greater Jakarta greater, with a
\nsubscription target of at least 300,000 customers in the first
\nyear of the operation.<\/p>\n
\"Presuming that the government awards the license in the
\nmiddle of this year and the development of the infrastructure
\ngoes smoothly, insya Allah (God willing) we will start our mobile
\nphone operation next year,\" he told The Jakarta Post on the
\nsidelines of the Indonesian International Telecommunication,
\nMedia & Information Technology 2000 exhibition and seminar.<\/p>\n
Director general for post and telecommunications Sasmito
\nDirdjo said on Thursday the government would award Indosat and PT
\nTelkom with new licenses as mobile telephone operators for the
\nGSM 1800 format in August as part of its plan to turn the two
\nfirms into full network and service operators.<\/p>\n
Budi said the mobile communications business was very
\nessential to help Indosat accelerate the transformation of its
\nstatus from just an international telephone call operator into a
\nfull network and service operator.<\/p>\n
\"Just like Telkom, Indosat is dying to immediately get the
\ngreen light to start the cellular business... it can help us
\ncreate a vast customer base to be used as an asset in the near
\nfuture when we eventually enter the fixed telephone service,\" he
\nsaid.<\/p>\n
The government said that in a bid to anticipate the impending
\nglobal market it would reform its policy on the telecoms sector
\nby eliminating the monopoly currently enjoyed by Indosat and
\nTelkom by 2002 or 2003.<\/p>\n
Indosat and its subsidiary Satelindo currently hold the
\nexclusive rights to provide international telecommunications
\nservice until 2004, while Telkom controls the fixed line
\ntelecommunications until 2010.<\/p>\n
Budi said Indosat had no objection to the government's plan to
\nlift the company's monopoly before 2004.<\/p>\n
\"The time frame is suitable, I suppose. Insya Allah, Indosat
\nwill be ready with sufficient fixed and wireless infrastructures
\nat that time,\" he said.<\/p>\n
He said the government had offered Indosat and Telkom the
\noption to build a total of four million lines comprised of fixed
\nlines and wireless local loop lines during the period 2000 to
\n2004.<\/p>\n
Indosat and Telkom will further negotiate on the allocation of
\nlines to be developed by each company, he said, adding that it
\nwill cost the company about $1,000 to install a single fixed
\ntelephone line.<\/p>\n
Indosat, which reported first quarter net income of Rp 433.8
\nbillion (US$54.2 million), lists its shares on the Jakarta and
\nSurabaya Stock Exchanges, while its American Depository Shares
\n(ADS) are listed on the New York Stock Exchange. (cst)<\/p>",
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