Satelindo to expand cellular network<\/p>\n
JAKARTA (JP): Cellular telephone operator PT Satelit Palapa
\nIndonesia (Satelindo) will continue with its expansion plans
\ndespite the economic crisis, an executive at the company said
\nhere on Wednesday.<\/p>\n
The company's cellular director, S.W. Ouwens, said on
\nWednesday Satelindo would install new equipment worth US$170
\nmillion to support its prepaid card service.<\/p>\n
"On the first of July this year, we will serve Bali and
\ngradually move on to serve Kalimantan, Sumatra, Sulawesi and
\nAmbon," he said.<\/p>\n
Ouwens said the expansion plan would not require fresh funds
\nbecause the $170 million worth of equipment was procured before
\nthe crisis hit in the middle of 1997.<\/p>\n
Head of customer service Dino Mahendra said the company had
\nnot used the equipment at the time because the number of
\ncustomers and scope of coverage was not growing as rapidly as it
\ncurrently is.<\/p>\n
Satelindo, one of the country's three Global System for Mobile
\n(GSM) operators, currently serves about 520,000 subscribers in
\nJava and Madura with its postpaid and prepaid cards.<\/p>\n
He said that with the completion of the expansion project by
\nthe end of this year, its prepaid card could be used in all of
\nthe country's major cities.<\/p>\n
Unlike its postpaid service, the company's prepaid service
\nalready covers most of the country's 27 provinces.<\/p>\n
He said the company was lucky to be able expand its business
\nwhile other operators were being forced to cut back their
\nservices due to financial hardships.<\/p>\n
Reports have said several cellular operators were forced to
\nmove transmission components from one location to another because
\nthey could not buy new components.<\/p>\n
"We are also affected by the financial crisis, which somehow
\ncut customers' telephone usage, but we try to survive," Dino
\nsaid.<\/p>\n
He said the average charge for Satelindo's postpaid cards this
\nyear had decreased to Rp 250,000 per user per month from Rp
\n275,000 per user per month last year.<\/p>\n
While the average charge for Satelindo's prepaid card,
\nMentari, which was launched in September last year, stands at Rp
\n70,000 per user per month as of March this year, he said.<\/p>\n
Ouwens said unpaid bills were still a relatively small problem
\nat the company, equaling only 5 percent of the company's total
\nmonthly revenue of some Rp 42.5 billion from its postpaid
\nservice.<\/p>\n
"The figure stood at 45 percent in mid-1997 and was at about 6
\npercent last year," he said.<\/p>\n
He said the company was upbeat and expected to see steady
\ngrowth in the number of Satelindo customers. Subscribers of
\nprepaid cards are expected to outnumber postpaid card
\nsubscribers, he added.<\/p>\n
"The target is that by the first of January 2000, the number
\nof prepaid card users will reach 500,000 and the number of
\npostpaid card subscribers will be 170,000," he said.<\/p>\n
Satelindo, which also provide international telecommunications
\nservices, is jointly owned by local company PT Bimagraha, which
\nholds a 45 percent stake, Deustche Telecom with a 25 percent
\nstake, state telecommunications company PT Telkom with a 22.5
\npercent stake and Indosat, which owns a 7.5 percent stake in
\nSatelindo. (cst)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/satelindo-to-expand-cellular-network-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
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