Windfall for telecommunications operators in RI<\/p>\n
JAKARTA (JP): The telecommunications industry in Indonesia has
\nwitnessed significant growth recently with the development of
\nvarious facilities, including networks, equipment, value added
\nservices and other telecommunications related businesses.<\/p>\n
In telephone facilities development the government has allowed
\nthe participation of private firms in the establishment and
\nmanagement of telephone lines in the country's five
\ntelecommunications areas.<\/p>\n
During the current Five Year Development Plan (Repelita VI)
\nperiod, the government has set itself the target of installing at
\nleast five million new telephone lines, of which some 2.25
\nmillion are being offered to private companies, while the
\nremainder, located in the greater Jakarta area and East Java,
\nwill be installed by the state-owned domestic telecommunications
\ncompany, PT Telekomunikasi Indonesia (Telkom).<\/p>\n
A total of five consortia, comprising both foreign and
\ndomestic companies and cooperatives, have been selected
\nto install the 2.25 million business lines in parts of the
\ncountry other than Jakarta and East Java. After the signing of
\n15-year concessions, popularly called KSOs, Telkom handed over
\nthe projects to the five private firms earlier this year.<\/p>\n
It's a long-awaited breakthrough for the country's
\ntelecommunications industry. Many other countries in Asia,
\nincluding Singapore and Japan, still keep their basic
\ntelecommunications business closed to foreign participation.
\nBefore the KSO was introduced, Telkom had offered just profit-
\nsharing cooperation arrangements to private firms.<\/p>\n
Leading world-class telecommunications operators involved in
\nthe KSO projects include France Telecom, West Inc., Telstra of
\nAustralia, NTT of Japan, Cable and Wireless of Britain and
\nSingapore Telecom.<\/p>\n
\"Welcome to the most open telecommunications industry in the
\nworld,\" Minister of Tourism, Post and Telecommunications Joop Ave
\nsaid, referring to how Indonesia has been allowing foreign
\ninvestment in the telecommunications industry.<\/p>\n
In the cellular mobile telephone business, Indonesia currently
\nhas seven operators running three different systems. PT
\nTelekomindo, PT Metrosel and PT Komselindo run the advanced
\nmobile phone system (AMPS); PT Mobisel runs the Nordic mobile
\ntelephones (NMT) system; and PT Satelindo, PT Telkomsel and PT
\nExcelcomindo run the Global System for Mobile Communications
\n(GSM).<\/p>\n
Some of the cellular mobile telecommunications operators are
\npartly owned by foreign firms. Satelindo's partner is DeTeMobil
\nof Germany, Telkomsel is partly owned by PTT Telecom Netherlands
\nand Excelcomindo is linked to the American firm Nynex and Mitsui
\nof Japan.<\/p>\n
Subscribers to cellular mobile telephones have also increased
\nrapidly, especially after the government eliminated the import
\nduty on certain handheld models in 1995. However the government
\nnow imposes a Rp 400,000 duty for each handset when purchased.<\/p>\n
In the meantime, both domestic and overseas firms are eying
\nchances to enter the new digital cellular telecommunications
\nprojects. These include the Personal Communications Network
\n(PCN), the DCS-1800 and the Personal Handy-phone Service (PHS).
\nThe new systems operate on 1,800 megahertz or 1,900 megahertz, a
\nhigher operating frequency than the digital network and able to
\nsupport more subscribers per area. Its coverage includes
\nexpressways and tunnels.<\/p>\n
A number of overseas telecommunications operators including
\nHutchison of Hong Kong, Singapore Telecom, and NTT of Japan have
\nexpressed an interest in dealing with the prospective businesses.<\/p>\n
Domestic telecommunications firms, Telkom, PT Indosat and PT
\nInti, have also prepared themselves for the businesses as the
\ngovernment is expected to license more than one firm to operate
\nthe new digital cellular system.<\/p>\n
The tender for the new digital cellular system is expected to
\nbe opened later this year.<\/p>\n
On a smaller scale, fixed radio telecommunications, the second
\ngeneration of cordless telecommunications system (CT2) and radio
\npaging\/beeper services as one of the other wireless
\ntelecommunications systems have also expanded widely.<\/p>\n
Last year PT Ratelindo the country's only private operator of
\nfixed cellular digital radio telephones, introduced its project.
\nThe system is offered particularly to areas in Jakarta which are
\nfar away from telephone networks installed by Telkom. Ratelindo
\nis owned by Telkom and a joint venture company which is partly
\ncontrolled by PTT Telecom Netherlands.<\/p>\n
In the meantime, PT Telepoint Nusantara, a private firm which
\noperates cordless telephones, is also running its CT2, a wireless
\ntelephone service which is only able to make outgoing calls.
\nSeveral foreign firms intend to participate in the ownership of
\nTelepoint.<\/p>\n
Many overseas companies are also participating in Indonesia's
\nradio-paging services. PT Dutasejahtera Komunikatama which runs
\nStarpage beeper service, is partly owned by Motorola of the
\nUnited States. Other radio paging providers which are partly
\nowned by overseas parties include PT Telematrixindo with the
\nEasyCall brand; PT SkyTelindo with Skytel; PT Indolink First
\nPacific with Indolink and PT Buana Bintangbayu whose Telepage is
\npartly owned by a Japanese firm.<\/p>\n
PT Raya Pertiwi Semesta with its Multipage beeper is
\nindirectly owned by NTT International Corporation of Japan, while
\nPT Hutchison Sewu, which runs Personal Beepers, is partly owned
\nby Hutchison Whampoa Ltd of Hong Kong.<\/p>\n
Currently, Indonesia has three radio trunking system
\nproviders. The firms operating radio phone services are
\nPT Mobilkom Telekomindo (partly owned by Jasmine of Thailand,
\nGoldman Sachs and International Wireless Communication of the
\nUnited States), PT Jastrindo Dinamika (partly owned by Telstra)
\nand PT Maesa Nusatama.<\/p>\n
Two more firms, PT Indocall Rintis Buana and PT Prasarana
\nLokapratama will soon start similar businesses, while the
\ngovernment plans to license two more firms to provide
\ntelecommunications through the radio trunking system, bringing
\nthe total number of such operators to seven.<\/p>\n
Besides the wireless telecommunications system, Indonesia will
\nalso be operating, within the next two years, a sophisticated
\ndigital mobile telecommunications project based on satellite
\ntechnology. The $1 billion project is being developed by PT Asia
\nCellular Satellite System (ACeS) which is owned equally by
\nIndonesian, Thai and Philippine firms.<\/p>\n
Satellites are playing a major role in the development of the
\ntelecommunications industry, and will in turn accelerate the
\ngrowth of the country's economy and improve the well-being of the
\npopulation.<\/p>\n
Currently the country has the third generation of
\ncommunications satellites called the Palapa-C1 and the Palapa-C2
\nwhich are operated by Satelindo.<\/p>\n
The two satellites, one of which was launched from Kourou in
\nFrench Guiana yesterday, are invaluable both to broadcasters and
\ntelephony service providers.<\/p>\n
As a satellite operator, Satelindo plans to establish
\npartnerships in several global satellite telecommunications
\nprojects.<\/p>\n
There are currently several global satellite projects with
\nplans to launch satellite-based telecommunications systems. The
\nmulti-billion dollar projects, including Iridium, Odyssey,
\nGlobalstar, Teledesic and Inmarsat P, will begin operating within
\nthe next five or six years.<\/p>\n
Iridium, led by American Motorola, will operate 66 satellites
\nto be sent into orbit starting in 1998. The initial stage of the
\nglobal network will have the capacity to serve 1.5 million mobile
\ntelephones and 500,000 international pagers. Another American
\nproject, the Globalstar system, plans to launch 48 low-orbit
\nsatellites to provide worldwide telephone and other digital
\ncommunication services.<\/p>\n
Odyssey, a consortium established by TRW from the U.S. and
\nCanada's Teleglobe, also plans to operate 12 satellites in the
\nmedium-earth orbit. The project is expected to commence by the
\nyear 2000. The International Maritime Satellite (Inmarsat)
\norganization is planning a similar project, called Inmarsat P or
\nI-CO Global Communications, which will use 10 satellites.<\/p>\n
Some of the projects have expressed their interest in entering
\nIndonesia which is considered one of the biggest potential
\nmarkets in Asia.<\/p>\n
Inmarsat is the first of such companies to secure a place in
\nIndonesia as Indosat has set up a new subsidiary called PT
\nIndokomsat Lintas Dunia to provide services from I-CO Global in
\nthe country after the project starts within the next two years.
\nIndosat spent $12.87 million to acquire a 1.41 percent stake in
\nI-CO. The system will permit mobile voice and data communications
\nthrough a hand-held telephone anywhere in the world.<\/p>\n
Though the government has opened the telecommunications
\nindustry door to overseas firms, the government still holds its
\nonly key. Any basic telecommunications service must be operated
\nby state-owned companies.<\/p>\n
The involvement of private operators in the Indonesian
\ntelecommunications industry is permitted on the condition that
\nsuch firms cooperate with the state-owned companies under a
\njoint-operation, joint-venture or management agreement.<\/p>\n
Therefore, based on the country's Telecommunications Law No.
\n3\/1989, interested parties planning to enter the
\ntelecommunications industry are required to set up partnerships
\nwith either Telkom or Indosat or both.<\/p>\n
-- I. Christianto<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/windfall-for-telecommunications-operators-in-ri-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }