Indosat to pump $46.4m into fixed wireless<\/p>\n
Leony Aurora, The Jakarta Post, Jakarta<\/p>\n
PT Indonesian Satellite Corp. (Indosat) will invest US$46.4
\nmillion this year to develop a fixed wireless service, which is
\nto start operating in April.<\/p>\n
Indosat CEO Widya Purnama said 250,000 lines of limited
\ncoverage phones would be established in Jakarta and Surabaya,
\nwith installment to commence this month.<\/p>\n
"We will build the network with our own capital, since our
\nplan to cooperate with Bakrie under a revenue-sharing scheme
\ndidn't pull through," said Widya on Wednesday.<\/p>\n
In March 2003, Indosat signed a preliminary agreement with
\nMega Asia Consortium, comprising the Bakrie Communication
\nCompany, Tomen Corporation, PT Asiabumi Piramida and PT
\nSaranainsan Muda Selaras, to develop a fixed wireless network.
\nThe two sides failed to reach an agreement on equity arrangements
\nand ended the partnership in June.<\/p>\n
According to Indosat's investment plan, capital expenditure
\nwill reach US$185 per line, much higher than the US$164 per line
\nestimated by the consortium.<\/p>\n
Widya said the lack of supporting regulations was an obstacle
\nto building a fixed wireless network based on code division
\nmultiple access (CDMA) technology.<\/p>\n
"Even so, we will go ahead with the construction," he said.<\/p>\n
Indosat has been focusing on its cellular services, which
\ncontributed approximately 60 percent of its Rp 8 trillion
\n(US$941.18 million) annual revenue in 2003.<\/p>\n
The company completed a merger in the first week of January
\nbetween subsidiaries PT Satelit Palapa Indonesia (Satelindo) and
\nPT Indosat Mobile Multi Media (IM3), two cellular operators with
\na combined six million subscribers -- five million with Satelindo
\nand one million with IM3.<\/p>\n
"With this merger, we aim to reach an efficiency of 20 percent
\nin five years," said Hasnul Suhaimi, Indosat cellular marketing
\ndirector, during an event marking the six million-strong
\nmembership.<\/p>\n
Cellular network development will make up 80 percent to 85
\npercent of Indosat's total capital expenditure of US$580 million
\nthis year, much more than its fixed wireless investment.<\/p>\n
"We have set a target of between two million and 2.5 million
\nnew cellular customers," said Hasnul, adding that gross revenue
\nwas expected to increase by 27 percent from 2003.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indosat-to-pump-464m-into-fixed-wireless-1447893297",
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