Wed, 15 May 1996

ACeS chooses Proton to launch its satellite

JAKARTA (JP): PT Asia Cellular Satellite System (ACeS), a Jakarta-based mobile satellite telecommunications operator, has chosen a Russian Proton rocket for the launch of its Garuda satellite.

ACeS's chief executive officer, Adi Rahman Adiwoso, said yesterday that his company would still hold a series of negotiations with Russia's Krunichev Enterprise, the Proton producer, about the launching costs.

"I hope the launching costs will not surpass US$70 million," he said after delivering a presentation at the Indonesia Summit 1996 at the Shangri-La Hotel.

ACeS, which started operations in February 1995, is equally owned by three parties -- PT Pasifik Satelit Nusantara (PSN) of Indonesia, Philippines Long Distance Telephone Co. (PLDT) of the Philippines and Jasmine International Public Co. Ltd. of Thailand. ACeS will operate digital telecommunications using four geo-stationary satellites called Garuda.

PSN, established in 1991, provides satellite-based communication services within the Asia-Pacific region using six extended C-band transponders of the Palapa-C satellites. The company, which is now preparing its initial public offering, will be the country's first private telecommunications operator to float its shares on the Nasdaq stock exchange in the United States.

PSN is a joint venture 25.85 percent owned by Telkom, 19.39 percent by PT Elektrindo Nusantara, a subsidiary of the Bimantara Group, 9.7 percent by PT Primaupaya Lintaswara, 9.38 percent by PT Skaisnetindo Teknotama, 1.77 percent by PT Mutu Prima Abadi, 8.85 percent by Hughes Space and Communications Inc. of the United States, 8.85 percent by Telesat Canada and 16.21 percent by Quoin Financial Corporation of the United States.

ACeS's $1-billion project will allow any person with a hand- held device to communicate directly with another person carrying a similar device within the satellite coverage in Asia and, through ground station gateways and normal public switch telephone networks, to any person with a cellular or fixed telephone anywhere in the world.

The satellite's coverage will encompass India, Bangladesh, Myanmar, China, South Korea, southern Japan, Hong Kong, Taiwan, Indochina and the members of the Association of Southeast Asian Nations -- Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

ACeS has also signed a contract with Ericsson of the Swedish Telecom group for the purchase of 250,000 telephone handsets.

Adi said yesterday that his company's first satellite, manufactured by the American defense contractor Lockheed Martin Corporation, will be launched in July or August 1998.

The first Garuda satellite, weighing 4,400 kilograms, will be placed at 123.5 degrees east longitude in a geo-stationary orbit.

"Proton has offered the cheapest price, which is almost half the price offered by France-based Arianespace," he said.

ACeS last month narrowed down its candidate for satellite launcher to Proton or Arianespace. Arianespace will launch the country's Palapa-C2 from satellite Kourou, French Guiana, tomorrow at a cost of $83.5 million.

Proton is being developed by Krunichev which has already teamed up with the U.S. Lockheed Martin. Last month, a heavy Proton D-1-E rocket blasted off carrying a 3,010-kg U.S.-built communications satellite from the Khrunichev Space Center in Baikonur of Kazakhstan. In addition to Baikonur, Russian rockets usually blast off from the northern Plessetsk launching pad. Russia is also known for its Cyclone-3 rocket which is able to carry up to six satellites per launch. (icn)