Nynex joins Indonesian digital cellular venture<\/p>\n
NEW YORK (UPI): Nynex Corp. announced Wednesday it will buy a
\n23 percent stake in Excelcomindo, a digital cellular venture
\naimed at the untapped Indonesian market of 195 million.<\/p>\n
Nynex did not disclose the value of the investment, but called
\nit the largest U.S. interest in the Indonesian telecommunications
\nmarket to date.<\/p>\n
Nynex spokesman Dave Frail said the partners estimate the
\nventure will require US$800 million in capital investment and
\nadded Nynex and two other non-Indonesian partners plan to invest
\n$250 million. Frail noted the partners have agreed not to
\ndisclose the value of their individual investments.<\/p>\n
Excelcomindo plans to begin offering digital mobile telephone
\nservice based on the European global standard for mobile (GSM)
\nsystem beginning in mid-1996 and to reach large Indonesian cities
\nthroughout the country by 1998.<\/p>\n
The New York-based regional Bell operating company said the
\ninvestment builds on its other investments in neighboring
\nThailand and the Philippines.<\/p>\n
Indonesia, the world's 15th largest nation with more than
\n17,000 islands, has one of the lowest telephone penetration rates
\nin the world -- about 1.8 telephone lines per 100 people, Nynex
\nsaid.<\/p>\n
Its current mobile communications market comprises between
\n100,000 and 150,000 subscribers on four regional analog networks
\nand two recently licensed national GSM networks, Nynex said.<\/p>\n
Nynex said it will be the strategic operating partner with PT
\nTelekomindo, the major Indonesian shareholder; Mitsui, the
\nJapanese trading firm; Asian Infrastructure Fund, an Asian
\ninvestment firm; and several local investors, including Santana
\nTelekomindo, Yayasan Kartika Eka Paksi, and Yayasan Tridaya.<\/p>\n
Nynex, Mitsui and the Asian fund are contributing the $250
\nmillion, the spokesman said.<\/p>\n
\"A very low telephone penetration rate coupled with rapid
\neconomic-growth have led to a dramatic increase in demand for
\ntelecommunications in Indonesia,\" said Frederic Salerno, Nynex
\nvice chairman -- Finance and Business Development. \"Digital
\ncellular service using state-of-the-art engineering and
\ntechnology is an ideal way to rapidly make telephone service
\navailable in densely populated cities.\"<\/p>\n
Excelcomindo will hold one of three nationwide licenses for
\nGSM cellular service. The new company represents Nynex's largest
\ninternational cellular venture to date.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/nynex-joins-indonesian-digital-cellular-venture-1447893297",
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"sponsor": "Okusi Associates",
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