Asia Link buys 35% of Metrosel

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)