`RI not ready for 3G technology'<\/p>\n
Fitri Wulandari, The Jakarta Post, Jakarta<\/p>\n
The government's offer to build the much-hyped third
\ngeneration (3G) mobile service nationwide has received cool
\nresponses from telecommunication players, who said the service
\nwould not sell in Indonesia, which was still largely a voice
\nmarket.<\/p>\n
Rudiantara, the chairman of the Indonesian Cellular Phone
\nProvider Association, said the service did not yet have any
\ncommercial value.<\/p>\n
\"The technology is relatively new while consumer buying power
\nand market demand are still low. Thus, its commercial value is
\nnot there yet,\" Rudiantara told The Jakarta Post in a phone
\ninterview.<\/p>\n
Hasnul Suhaimi, commercial director of giant phone operator PT
\nIndosat, was of a similar opinion saying most of Indonesia's 11.4
\nmillion mobile service subscribers used their cell phones only to
\nexchange voice messages. A very limited number used them to
\nexchange data.<\/p>\n
Indosat operates two cellular phone services, called Satelindo
\nand IM3. Besides, it provides satellite and long distance call,
\nand fixed-line services.<\/p>\n
Hasnul said that the General Pocket Radio Service (GPRS),
\nwhich is a data-exchange facility available to IM3 subscribers,
\naccounted for a mere one percent of IM3's total revenue. This
\nillustrated how exchanging data via cell phones was still
\nunpopular in the country.<\/p>\n
Dubbed the two-and-a half generation mobile service, GPRS is
\ndeemed as a necessary transition between the second generation
\nand 3G. It enables high speed mobile data transmission of
\napplications such as mobile Internet browsing and e-mails.<\/p>\n
Meanwhile, PT Telkomsel, whose subscribers make up 52 percent
\nof the total number of subscribers nationwide, could not be
\nreached for its views. Telkomsel is a subsidiary of the country's
\nlargest phone operator, PT Telkom.<\/p>\n
Third-generation mobile phone services allow speedy access to
\ndata and video through the Internet.<\/p>\n
The technology has caused a fuss around the world. In European
\ncountries like Britain and Germany, telecoms operators paid
\nbillions of dollars to the government for 3G licenses. Many
\ngovernments then used the issuance of 3G licenses as a chance to
\nquickly rake in billions of dollars in revenue.<\/p>\n
In 2001, Japan's NTT DoCoMo introduced the world's first 3G
\ntechnology enabling users to relay video images and download
\nmusic.<\/p>\n
The government announced on Monday through advertisements in
\nvarious papers that it was offering 3G licenses to
\ntelecommunication companies in Indonesia through a bidding
\nprocess.<\/p>\n
According to the announcement, only those who have no
\npartnership arrangement nor affiliations with the country's
\nexisting telecommunication operators may apply for the 3G
\nlicenses.<\/p>\n
This means the country's two giant phone operators will not be
\nable to enter the market.<\/p>\n
Hasnul said this prohibition might hamper the development of
\n3G technology here because the future 3G operators must be new
\ncompanies who do not have a costumer base. At the same time, they
\nhave to sell relatively new products.<\/p>\n
\"Usually, only old cellular subscribers have the capability to
\nbuy the service. Not new ones. As such the future 3G operators
\nwill have to attract the current cellular subscribers to switch
\nto their services,\" Hasnul explained.<\/p>\n
Hasnul added that in many countries, the existing operators
\nwere allowed to bid for 3G licenses as they had a customer base.<\/p>\n
Both Hasnul and Rudiantara agreed that the technology would
\nonly become feasible in four to five years time.<\/p>",
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"sponsor": "Okusi Associates",
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