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.