Arianespace, Delta vying for Telkom satellite

Arianespace, Delta vying for Telkom satellite

The Jakarta Post, Jakarta

European consortium Arianespace and U.S. company Delta are
competing to win the tender for the construction and launch of a
telecommunications satellite belonging to state-owned
telecommunications firm PT Telkom.

The satellite, to be called the Telkom-2, is expected to be
put into orbit sometime in the first quarter of 2004. It will
replace the B4 satellite, which will end its service in the
middle of this year at the latest.

"Preparations for the launch of a satellite to replace the B4
satellite are underway, including selecting the company that
will build and launch the satellite," Telkom's director for
planning and operations, Kristiono, was quoted by Antara as
saying on Tuesday.

He said the cost of the construction and launch of the
satellite was expected to reach between US$125 million and $150
million.

He added that negotiations with the bidders would focus on the
cost of the project.

Kristiono said Telkom had to move fast in selecting a winning
bid because the construction of the satellite would take at least
18 to 20 months.

He said that while 70 percent of the B4 satellite's capacity
was used for Telkom's internal purposes, and the remaining 30
percent for commercial, the new satellite would be mainly used
for commercial purposes.

"The orientation of the new satellite will be changed, with 70
percent (being used) for commercial development, particularly in
the retail sector," he said.

The telecommunications industry is seen as having great growth
potential in Indonesia, which has a population of over 200
million and a relatively low rate of telephone penetration.