Satelindo to expand network in Kalimantan, Sulawesi<\/p>\n
Rendi A. Witular
\nThe Jakarta Post
\nJakarta<\/p>\n
Cellular operator PT Satelit Palapa Indonesia (Satelindo) plans
\nto invest some US$250 million this year to develop the cellular
\ninfrastructure in Kalimantan and Sulawesi, a senior company
\nofficial said on Wednesday.<\/p>\n
Satelindo's executive vice president for business development,
\nNoor S.D.K. Devi, said it was hoped the development program would
\nenable the company to achieve its target of three million
\ncustomers this year, from the current 1.8 million.<\/p>\n
\"The enhancement in network coverage, capacity and features is
\naimed at reaching this year's target of three million customers.
\nOne of the new features is the Mentari Instant Top-Up, a mobile
\ncommerce facility that is the first in the Indonesian market,\"
\nNoor said.<\/p>\n
Satelindo is the country's second largest cellular operator
\nafter PT Telkomsel. The company is 75 percent owned by state-
\nowned telecommunications firm PT Indosat, with the remaining 25
\npercent stake held by Germany's Deutsche Telekom. But Indosat is
\ncurrently in final negotiations with Deutsche Telekom to purchase
\nits 25 percent stake.<\/p>\n
Indosat said earlier this week that it would inject about $75
\nmillion into Satelindo in July to help finance its expansion
\nprogram.<\/p>\n
Under an agreement with creditors, Satelindo's investment
\nspending is limited at about $50 million, analysts have said.<\/p>\n
Noor did not say where the remaining money for the expansion
\nprogram would come from.<\/p>\n
Satelindo recently abandoned plans for an initial public
\noffering sometime this year to raise cash. The plan was canceled
\nin order to maintain investor interest in Indosat shares, to be
\nsold by the government in two stages in June and October.<\/p>\n
In a related development, PT Indosat Mega Media (IMM), a
\nmultimedia division of Indosat, said it would invest about $20
\nmillion to expand its network's coverage.<\/p>\n
Company president Brata Hardjosubroto said IMM planned to set
\nup an Internet Protocol (IP) backbone infrastructure to expand
\nits Internet and multimedia networks in 27 spots around the
\ncountry, including in Medan, Batam, Palembang, Bogor, Bandung,
\nYogyakarta, Denpasar, Balikpapan, Makassar and Manado.<\/p>\n
The backbone infrastructure is expected to be completed in
\n2003.<\/p>\n
\"The backbone, which will bring with it broadband technology,
\nwill not only be used by our partner, but also by other companies
\nunder the Indosat umbrella. The backbone will also enable us to
\nbecoming a world-class operator,\" said Brata.<\/p>\n
IMM is also set to plunge into the cable TV business under the
\nname IGLOtv, which will offer more than 50 channels using the
\nHybrid Fiber Coax connection technology.<\/p>",
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