ACeS to launch Garuda-1 satellite in September
JAKARTA (JP): After a one-year delay caused by technical difficulties, Indonesia-based international satellite operator PT Asia Cellular Satellite (ACeS) announced it would launch its US$757 million Garuda-1 satellite in the second week of September.
ACeS president and chief executive officer Adi Rahman Adiwoso said on Tuesday the satellite would commence commercial operations in the first quarter of 2000 and would cover at least 10 countries in the Asia Pacific region.
"We expect to break even about one year after the commercial operation of the satellite, with subscribers of at least 140,000," he said.
He said ACeS would focus on regional coverage and charge its subscribers reduced rates in comparison to other satellite-based telecommunications operators, including Iridium, Globalstar and ICO. The rate would be less than $1 per minute, he said.
The Garuda-1 satellite, made by the United States aerospace, defense and telecommunications giant Lockheed Martin Global Telecommunications, would be launched on a Proton D-1-e rocket from the Baikonur Cosmodrome in Kazakhstan, he said.
The ACeS system is based on the Global System for Mobile Communications standard and will employ dual-mode handsets (ACeS- GSM and ACeS-AMPS). The non-exclusive contract was awarded to Sweden's Ericsson in September 1996.
The Garuda-1 will add to the number of Indonesian satellites currently in orbit, including the Palapa B2R and B4, the Palapa C2, and Cakrawarta. Another satellite, Telkom-1, a satellite owned by state-owned PT Telkom is also scheduled for launching this year by French space launcher Arianespace.
ACeS is a joint venture company initially set up by Indonesian PT Pasifik Satelit Nusantara (PSN), Thailand's Jasmine International and the Philippines Long Distance Telephone Company (LDTC).
Adiwoso said Lockheed Martin joined ACeS in January this year by injecting $162 million for 32.55 percent of company stock. The share proportion between the three founder companies now comprises PSN, with 34.7 percent the biggest stockholder, LDTC with 20.7 percent and Jasmine with 11.9 percent.
He said another company would soon become a new ACeS stockholder.
"We hope to finalize the negotiation and all documents in early August," Adiwoso said, declining to reveal the name of the company.
He added that Lockheed's equity participation, which increased ACe's total equity to $372 million, was made after Bank Danamon and Bank PDFCI -- two of six local creditors that agreed to provide $259 million in a syndicated loan to the company -- failed to fulfill their loan commitment.
Bank Danamon and Bank PDFCI were taken over by the Indonesian Bank Restructuring Agency (IBRA) late last year for their failure to repay the massive liquidity support provided by the central bank.
The other creditors are Danareksa, which acted as underwriter in the loan syndication, Bank International Indonesia, Bank Panin and Bank Niaga.
Adi said the debt problems faced by Bank Danamon and PDFCI had led ACeS to be mistakenly included in the list of IBRA's largest bad debtors.
"But we have cleared up the case with IBRA. They (IBRA) have announced that ACeS is no longer on the list."
ACeS is currently working on the Garuda-2 satellite, previously designed as a backup satellite but now to serve to expand ACeS' service and coverage.
"The Garuda-2 satellite, worth around $400 million, is also made by Lockheed. It is expected to be ready for launching in 2001."
"We still need to find around $250 million to finance the project," Adi said. (cst)