JP\/1\/HUGHES<\/p>\n
Subsidiary of Hughes Aircraft signs contract with Bakrie<\/p>\n
JAKARTA (JP): A subsidiary of Hughes Aircraft of the United
\nStates strengthened its share of the telecommunications industry
\nyesterday with the signing of an agreement on the development of
\ncellular telephones.<\/p>\n
Hughes Network System (HNS) signed with PT Ratelindo, a joint
\nventure between the Bakrie Electronics Company (BEC) and PT
\nTelkom, to supply a high-capacity fixed wireless digital
\ntelephone system to 250,000 subscribers in Jakarta.<\/p>\n
The agreement was signed by HNS' executive vice president,
\nPradeep Kaul, and Ratelindo's president Hardianto Kamarga.<\/p>\n
Minister of Tourism, Post and Telecommunications Joop Ave, who
\nwitnessed the signing, said the telephone project will happen in
\nthree phases. The first phase, comprised of 50,000 lines worth
\nUS$78.5 million, will be completed by April 1995.<\/p>\n
The second and third phases, each of which will consist of
\n100,000 lines, will be constructed later.<\/p>\n
Within the just begun Sixth Five Year Development Plan
\n(Repelita VI), Indonesia is expected to install five million
\ntelephone lines, of which three million will be constructed by
\nTelkom.<\/p>\n
The participation of the private sector has been called
\nessential to accommodating the demand for telecommunications
\nservices, as the government's development funds are limited.<\/p>\n
Ratelindo, which is 45 percent owned by Telkom and 55 percent
\nby BEC, was established last year to provide fixed-cellular
\ndigital radio telephone services.<\/p>\n
Installation<\/p>\n
Hardianto said Ratelindo plans to install about 500,000
\ntelephone lines in eight large cities throughout the country.<\/p>\n
"The rate for Ratelindo's administration and utilization fees
\nwill be similar to those charged by Telkom," he said.<\/p>\n
However, he acknowledged that the investment needed by
\nRatelindo to install each telephone line will reach $1,800, far
\nhigher than the $1,500 spent by Telkom.<\/p>\n
The cellular digital radio telephones (CDRL), the first
\nintroduced here, are expected to cater to businesses that cannot
\nbe served by the normal telephone system and to customers in
\nareas where there are no telephone cables.<\/p>\n
Hardianto said Hughes defeated Motorola and AT&T of the U.S.,
\nEricsson of Sweden and Northern Telecom of Canada in bidding for
\nthe contract.<\/p>\n
He said that his company was assisted by the Netherlands'
\ntelecommunications company PTT Telecom BV, which controls a 30-
\npercent stake in BEC, and a U.S. consultant in the selection.
\n(icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jp1hughes-1447899208",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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