Telkom eyes cell phone services<\/p>\n
BANDUNG (JP): State telecommunications company PT Telkom is
\nconsidering a plan to enter the mobile telecommunications sector,
\nvice president and coordinator for new business development at
\nthe state firm Garuda Sugardo announced on Friday.<\/p>\n
Garuda said entering the cellular business would boost the
\ncompany's image and corporate value.<\/p>\n
He said Telkom, which currently owns a majority stake in the
\ncountry's cellular telephone operators, was currently assessing
\nthe feasibility of directly running a cellular telephone
\nbusiness.<\/p>\n
\"If it is feasible, I will recommend Telkom enter the cellular
\nbusiness in Jakarta and Surabaya,\" he said, adding that the
\nresults of the study were expected in the near future.<\/p>\n
He projected that Telkom would need to spend at least US$400
\nmillion to establish one base transceiver station to support
\ncellular services using the global system for mobile (GSM)
\ntelecommunications system.<\/p>\n
He said Telkom should not establish a new subsidiary to run
\nthe cellular business, but instead put the new division directly
\nunder its command. He added that the state telecommunications
\nmonopoly currently had too many subsidiaries.<\/p>\n
Telkom holds a 25 percent stake in PT Mobisel, 35 percent in
\nPT Komselindo and 20.1 percent in PT Metrosel, 42.7 percent in PT
\nTelkomsel, 22.5 percent in PT Satelindo. Telkom also has an
\ninterest in PT Excelcomindo through its subsidiary PT
\nTelekomindo, which controls 60 percent of Excelcomindo.<\/p>\n
Telkom also set up in 1997 two joint ventures: PT Selnet
\nNasional Indonesia (Selnas) and PT Indomedia Telephone Cellular
\nNational (Indophone). The two companies have received licenses to
\nenter the cellular telephone service market, but have yet to
\nrealize their plan.<\/p>\n
Selnas is 10 percent owned by Telkom and 90 percent owned by
\nPT Cellnet Nusantara, a private firm controlled by businessman
\nSudwikatmono -- one of former president Soeharto's close
\nrelatives -- and his youngest daughter Siti Hutami Endang
\nAdiningsih.<\/p>\n
Telkom has a 35 percent share in Indophone, which is 65
\npercent controlled by PT Nusantara Ampera Bakti (Nusamba).
\nNusamba's shareholders include timber tycoon Mohamad \"Bob\" Hasan,
\nwho is also the company's president commissioner.<\/p>\n
The two companies, along with at least nine other companies,
\nhave received licenses to run cellular telephone services under
\nthe Digital Cordless System (DCS-1800) system.<\/p>\n
None of the companies, however, have started their operations.<\/p>\n
Telkom announced on Friday that it had increased its stake in
\nits subsidiary PT Infomedia Nusantara to 51 percent, worth Rp
\n12.75 billion.<\/p>\n
Telkom previously controlled only 35.8 percent of the stake in
\nInfomedia, the publisher of telephone directory books. (43\/cst)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/telkom-eyes-cell-phone-services-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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