Satelindo's $835m service investment<\/p>\n
PARIS (JP): PT Satelindo, one of the country's seven mobile
\nphone operators, has pledged to invest at least US$835 million to
\nimprove its services.<\/p>\n
The company's director of cellular operations, Saleh Gunawan,
\nsaid here yesterday about $635 million would be spent on the
\nexpansion of its global system for mobile communications (GSM)
\nnetworks in Java.<\/p>\n
The other $200 million would finance the expansion of GSM
\nnetworks outside Java, he said.<\/p>\n
France's Alcatel supplies Satelindo's networks in Java and
\nGermany's Siemens its networks in other areas.<\/p>\n
Saleh was here for the signing ceremony between Satelindo and
\nits two major French partners, Paribas and Alcatel.<\/p>\n
Satelindo which runs GSM and satellite and international
\ntelecommunications services, has secured a $135.89 million loan
\nfrom French Paribas. The loan was backed by the French Export
\nCredit Agency, COFACE.<\/p>\n
Satelindo's managing director of finance, Hessel Fransen, said
\nthe credit agreement was signed on Feb. 13.<\/p>\n
The signing of additional documentation was done yesterday by
\nSatelindo's president, Iwa Sewaka, and Paribas's board of
\nmanagement chairman, Andre Levy-lang.<\/p>\n
Fransen said the loan was to finance a $152 million Alcatel-
\nsupplied expansion project. "The equipment for the $152 million
\nexpansion project has been 60 percent delivered."<\/p>\n
Iwa also signed a $225 million contract extension with
\nAlcatel, making its orders from the French telecommunications
\nequipment maker worth $635 million since 1993.<\/p>\n
Alcatel will start supply equipment for the new contract in
\nApril or May.<\/p>\n
Fransen said Satelindo had several ways to raise the money to
\npay for the new contract. "We may issue bonds or use other export
\nbank credit. Another possibility is the planned initial public
\noffering scheduled for next year."<\/p>\n
Saleh said Satelindo would have 450,000 GSM lines just in Java
\nby August.<\/p>\n
"Our backbone microwave network will reach 155 megabytes
\noffering synchronous digital hierarchy (SDH) technology," he
\nsaid.<\/p>\n
Satelindo would operate 1,000 base transceiver stations in
\nJava, he said.<\/p>\n
"Our investment in Java will reach up to $1 billion within
\nthe next few years," he said.<\/p>\n
The other cellular operators in Indonesia are PT Telkomsel and
\nPT Excelcomindo Pratama which run GSM. PT Telekomindo, PT
\nMetrosel and PT Komselindo run the Advanced Mobile Phone System,
\nwhile PT Mobisel runs the Nordic Mobile Telephone system.<\/p>\n
Saleh said Satelindo's GSM network would cover all of Java.<\/p>\n
He said Satelindo had signed roaming agreements with several
\nGSM operators in 25 nations, giving its users international
\naccess.<\/p>\n
"We will start roaming services in China and Saudi Arabia
\nlater this month," he said.<\/p>\n
Satelindo has 210,000 GSM users and relies on its microwave
\nnetwork, the Palapa-C transponder satellite, submarine cables and
\nfiber optic backbones.<\/p>\n
Saleh said the GSM service contributed Rp 360 billion or 60
\npercent of Satelindo's total revenue last year. "This year
\nrevenue from cellular operations is estimated to reach Rp 700
\nbillion," he said. (icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/satelindos-835m-service-investment-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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