Komselindo sets aside $40m for expansion<\/p>\n
JAKARTA (JP): PT Komunikasi Selular Indonesia (Komselindo), a
\nnew private cellular telecommunications operator, has allocated
\nan investment of Rp 90 billion (US$40.14 million) for the
\nexpansion of its cellular telecommunications business.<\/p>\n
The company's president, Soedjono Kramadibrata, said yesterday
\nthat the investment will be used to install more digital
\nswitching networks and 67 radio base stations.<\/p>\n
Komselindo's director of commerce, Zen Smith, said that the
\nnew radio base stations, which will bring the total number of
\nsuch facilities to 113, will use the narrow band advanced mobile
\nphone service (AMPS) system to provide clearer voice and greater
\ncapacity.<\/p>\n
Komselindo, set up with an investment of Rp 300 billion
\n($133.8 million) in January, is 65 percent controlled by PT
\nElektrindo Nusantara, an affiliate of the Bimantara Group, and 35
\npercent by the state-owned domestic telecommunications operator
\nPT Telkom.<\/p>\n
Komselindo's business was previously run jointly by Telkom and
\nElektrindo under a revenue sharing arrangement.<\/p>\n
According to Soedjono, AMPS is one of the leading systems used
\nfor cellular telecommunications in the world.<\/p>\n
\"As of April this year, AMPS had been applied to 51.22 million
\ncellular mobile telephones or 60.6 percent of such telephones in
\nthe world,\" he said after signing agreements with 13 appointed
\nsole agents here yesterday.<\/p>\n
Besides AMPS, the analog and digital cellular mobile
\ntelephones in the world also use the American Digital Cellular
\n(ADC) the Personal Digital Cellular (PDC), Global System for
\nMobile communications (GSM) and Nordic Mobile Telephones (NMT)
\nsystems.<\/p>\n
In Indonesia, three systems are operated by different
\noperators -- AMPS by Komselindo and PT Centralindo Pancasakti,
\nNMT by PT Rajasa Hasanah Perkasa and GSM by PT Satelindo, PT
\nTelkomsel and PT Telekomindo.<\/p>\n
Soedjono said that his company currently controls some 70
\npercent of the cellular mobile telephone market in Indonesia.<\/p>\n
He said Komselindo, whose handsets can be used for
\ninternational calls from 16 cities in 12 provinces, currently
\nlists some 50,000 subscribers.<\/p>\n
\"The number of subscribers is expected to reach 90,000 next
\nyear and to further increase to 400,000 by the end of 2000,\" he
\nsaid, adding that marketing cooperation with agents will support
\nbusiness growth.<\/p>\n
The 13 sole agents which signed yesterday's agreement are
\ndistributors of branded handsets with the trademarks of Motorola,
\nNEC, Nokia, Ericsson, Philips, Mitsubishi, JRC, Panasonic,
\nAudiovox, Hitachi, Oki, Cellstar and Goldstar.<\/p>\n
Soedjono said that Komselindo has also installed the automatic
\nanti-fraud system, a digital system to avoid the cloning of any
\nof Komselindo's cellular telephones.<\/p>\n
\"The rate of cloning problems has decreased steadily from 10
\npercent in March to just three percent in June this year. We
\nexpect to push the rate down to one percent by the end of this
\nyear,\" he said. (icn)<\/p>",
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