Satellite operator looks for protection<\/p>\n
JAKARTA (JP): PT Asia Cellular Satellite System (ACeS), a
\nsatellite-based Personal Communications Services (PCS) provider,
\nis seeking protection from the government to secure its planned
\nbusiness until 2003.<\/p>\n
Company president Adi R. Adiwoso said over the weekend that
\nIndonesia must be careful in extending licenses to overseas
\nMobile Satellite System (MSS) operators which plan to take
\nadvantage by penetrating the domestic market.<\/p>\n
\"ACeS is an Indonesia-based company which will provide
\nsatellite-based PCS in 1998. The company deserves to have
\nprotection at least until the ASEAN Free Trade Area being
\nimplemented in 2003,\" he said.<\/p>\n
\"Besides, ACeS, whose services will be handled in Indonesia by
\nPT Pasifik Satelit Nusantara, will offer the cheapest airtime
\nfare compared to other operators,\" he said.<\/p>\n
Pasifik Satelit Nusantara has already been licensed by the
\ngovernment to run basic telecommunications services as the
\ncompany is partly owned by the state-owned PT Telkom.<\/p>\n
The involvement of private operators in the Indonesian
\ntelecommunications industry will be permitted only on condition
\nthat such firms cooperate with state-owned companies under joint-
\noperation, joint-venture or management cooperation arrangements.<\/p>\n
ACeS, equally owned by Pasifik Satelit Nusantara, Philippines
\nLong Distance Telephone Co. of the Philippines and Jasmine
\nInternational Public Co. Ltd. of Thailand, will have its first
\nsatellite launched in the middle of 1998.<\/p>\n
The company, set up in June 1995, has ordered Lockheed Martin
\nCorporation of the United States to build its first satellite,
\ncalled Garuda. ACeS plans to operate two satellites orbiting at
\nthe geostationary orbit.<\/p>\n
PCS, with MSS technology, offers a cheaper communications
\nsystem. Subscribers can be reached by voice and data with a
\nsingle phone number as long as they are in satellite coverage.
\nAirtime fares range between US$1 to $3 per minute.<\/p>\n
ACeS's service areas will include Japan, North and South
\nKorea, China, Hong Kong, Taiwan, India, Sri Lanka, Nepal, Bhutan,
\nBangladesh, Myanmar, Cambodia, Laos, Pakistan, parts of Russia,
\nMongolia, Papua New Guinea and the members of the Association of
\nSoutheast Asian Nations -- Brunei, Indonesia, Malaysia, the
\nPhilippines, Singapore, Thailand and Vietnam.<\/p>\n
In addition to ACeS, there are dozens of such firms in the
\nworld, some which plan to operate Asiawide.<\/p>\n
Among the multibillion dollar satellite-based PCS operators
\nare Iridium, Odyssey, Globalstar, Teledesic, Intermediate
\nCircular Orbit (ICO) Global Communications, Orbcomm, Afro-Asian
\nSatellite Communications, Asia-Pacific Mobile Telecommunications
\nSatellite, Signal, Marafon, Spaceway, Ellipso and Telesat Mobile
\nInc.<\/p>\n
Penetration<\/p>\n
Some of the operators aim to penetrate Indonesia's market, but
\nat the moment ICO is the only one which has won a ticket to deal
\nwith the domestic cellular telecommunications race.<\/p>\n
Through the state-owned international telecommunications
\nprovider PT Indosat, which holds 1.41 percent of ICO shares, ICO
\nhas a fixed slice of PCS business in the country.<\/p>\n
ICO is a worldwide consortium initiated by the Britain-based
\nInternational Maritime Satellite organization. The $2.8 billion
\nproject will use 10 satellites in two orbital planes and about
\neight to 12 ground stations.<\/p>\n
In the meantime, other MSS operators, including Globalstar,
\nTeledesic, Odyssey and Iridium, have also been lobbying the
\ngovernment to smooth their way into Indonesia.<\/p>\n
Globalstar, whose current investors include France Telecom and
\nAlcatel of France, Germany Deutsche Aerospace, Dacom and Hyundai
\nof Korea, and AirTouch Communications and Qualcomm of the United
\nStates, plans to launch up to 56 low-orbit satellites to provide
\nworldwide telephone and other digital communication services.<\/p>\n
Odyssey, a consortium established by TRW from the United
\nStates and Canada's Teleglobe, also plans to operate 12
\nsatellites in the medium-earth orbit.<\/p>\n
Iridium, led by Motorola, plans to spend US$4 billion on a
\ntelephone network with 66 satellites to be sent into low earth
\norbit.<\/p>\n
The $9-billion Teledesic, supported by American businessmen
\nBill Gates and Craig McCaw, plans to place 840 satellites in 21
\nlow earth orbit planes.<\/p>\n
The initial stages of the global networks are expected to
\ncommence within the next four to six years.<\/p>\n
Adi reminded that the government should not license more than
\ntwo MSS providers in Indonesia.<\/p>\n
\"The government, for instance, has issued a 'duopoly' policy
\non the international telecommunications services handed over to
\nPT Satelindo and Indosat.<\/p>\n
The 10-year exclusive rights to international
\ntelecommunications services in the country will expire in 2005.<\/p>\n
Adi said that a similar policy is necessary in the satellite-
\nbased PCS business.<\/p>\n
\"Most of the providers are overseas companies which enter our
\ndomestic market. Our money will be taken out,\" he said<\/p>\n
When entering a market in one nation, MSS providers usually
\nlook for one or more local partner as the national service
\nprovider, the party which markets and provides the PCS on a
\ncontract basis in that country.<\/p>\n
The domestic firms affiliated with the main providers will
\njust be local service providers.<\/p>\n
However, from the side of technology, any MSS services will
\nlikely apply to spot in the world within the satellite coverage,
\nincluding the modes of aircraft, vessels, vehicular and fixed
\nterminals. (icn)<\/p>",
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