'Seven operators can meet demand for cellular phones'<\/p>\n
JAKARTA (JP): The seven licensed mobile cellular
\ntelecommunications operators will be able to meet increasing
\ndomestic demand for cellular phones, an executive said yesterday.<\/p>\n
Julius S. Djohan, the president of PT Excelcomindo Pratama, a
\ndigital Global System for Mobile (GSM) communications operator,
\ntold The Jakarta Post that the seven providers were not operating
\nat capacity.<\/p>\n
"They will be able to serve up to 2.5 million users by 2003
\nwhen Indonesia has a population of about 210 million," he said,
\nadding that the figure would represent 4.2 percent market
\npenetration.<\/p>\n
He said penetration was now only 0.25 percent.<\/p>\n
"It will be good for business even if the figure only reaches
\n1.2 percent by 2003," he said.<\/p>\n
The seven companies operating cellular mobile
\ntelecommunications in Indonesia apply three different systems.<\/p>\n
The GSM system, the most recent domestically introduced
\nsystem, is operated by PT Telkomsel, PT Satelindo and PT
\nExcelcomindo. The Advanced Mobile Phone Service (AMPS) -- an
\nearlier analog system -- is operated by PT Metrosel Nusantara, PT
\nTelekomindo and PT Komselindo. The third system is the Nordic
\nMobile Telephone, an analog service primarily installed in
\nvehicles, which is run by PT Mobisel.<\/p>\n
The seven operators have attracted about 550,000 subscribers
\nthroughout the country. About 380,000 of them are GSM users.<\/p>\n
"Technically, the seven operators will also be able to serve a
\nmuch larger number of users by 2003," Djohan said.<\/p>\n
The government is expected to announce an open tender soon to
\nchoose PCN operators.<\/p>\n
PCN is the next generation of the digital wireless telephone
\nsystems which uses a light, inexpensive handset with long battery
\nlife to communicate via a low-power antenna. The system includes
\nthe Personal Communications System and the Digital Cordless
\nSystem from Europe, the Personal Handy-phone Service developed by
\nJapan and Code Division Multiple Access technology from the
\nUnited States.<\/p>\n
Djohan said Excelcomindo, which is investing US$350 million in
\nits GSM network between 1996 and 1997, had about 6,000 users.<\/p>\n
"We now operate in Jakarta, Bandung (West Java) and Surabaya
\n(East Java). Next year we will enter Bali, Lombok, Yogyakarta,
\nNorth Sumatra and Central Java," he said.<\/p>\n
Excelcomindo, which launched its cellular services in October,
\nwill invest another $300 million between 1998 and 2000 to expand
\nits GSM networks across the country, he said.<\/p>\n
The company is a joint-venture of Nynex Corp. of the United
\nStates and PT Telekomindo Prima Bhakti. Telekomindo is owned by
\nPT Rajawali Wira Bhakti Utama, a subsidiary of the Rajawali
\nGroup, controlled by businessman Peter Sondakh. State-owned PT
\nTelkom has a minor stake in Telekomindo, which runs an Advanced
\nMobile Phone System.<\/p>\n
Other Excelcomindo shareholders include Japanese trading firm
\nMitsui, the Asian Infrastructure Fund and several local
\ninvestors, including PT Santana Telekomindo, Yayasan Kartika Eka
\nPaksi and Yayasan Tridaya.<\/p>\n
Excelcomindo, set up in 1995, competes against PT Satelindo
\nand PT Telkomsel, the two maturer GSM operators.<\/p>\n
He estimated the cellular market in Indonesia would grow at
\nleast 50 percent to 850,000 users in 1997: "The market is still
\nvery young." (icn)<\/p>",
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