Asia Link buys 35% of Metrosel

SURABAYA (JP): PT Metro Seluler Nusantara (Metrosel), one of the country's three analog cellular telephone operators, said it would use most of the proceeds from the sale of 35 percent of its shares to Hong Kong-based Asia Link to improve its network technology.

Partono Prabowo, Metrosel's president, said here Tuesday his company's network would be upgraded into Code Division Multiple Access (CDMA) technology.

"The memorandum of understanding with Asia Link was signed last November and included the application plan of the system," Partono said after signing a cooperation agreement with PT Pos Indonesia in Surabaya.

He said the composition of Metrosel's major shareholders now included PT Centralindo Panca Sakti which owns 37 percent, Asia Link with 35 percent and PT Telkom's Retirement Funds Foundation with 20 percent.

The U.S.- developed CDMA technology reduces overall network costs and provides exceptional voice quality. It is being adopted around the world as the wireless industry's standard in delivering digital cellular and personal communications services.

Partono said the technology transformation from the narrowband Advanced Mobile Phone Service system previously used by the company to CDMA was long due.

The CDMA technology could compete with the Global System for Mobile (GSM) communications, the most recent cellular communication system introduced in the country, which uses digital technology, he said.

"We expect to attract about 300,000 customers in the country by the year 2000 with the use of CDMA technology," he said.

The GSM system is operated by Telkomsel, PT Satelindo PT Excelcomindo, while the analog AMPS system is operated by PT Metrosel, PT Telekomindo and PT Komselindo.

Three companies including a Korean company and America-based Lucent and Motorola are the contenders for the CDMA tender, he said.

Two American consultant firms, LCC and TEC, will select the foreign contractors and announce the result by next month, he said.

Asia Link provides cellular telephone services to 300,000 customers in Hong Kong and 300,000 in the Philippines. (nur/02)