BRTI threatens to revoke CAC's 3G license
BRTI threatens to revoke CAC's 3G license
The Jakarta Post, Jakarta
The Telecommunications Regulatory Body (BRTI) may recommend
that the government revoke the license of PT Cyber Access
Communications (CAC) to run third-generation (3G)
telecommunication services if the company did not install the
necessary infrastructure immediately.
"The BRTI has summoned CAC management to discuss and evaluate
the 3G license issued by the government last year," Suryadi Azis,
a member of the telecommunications watchdog, said on Thursday as
quoted by Antara.
CAC is one of two companies that have obtained the license to
run a 3G-based radio network; the other is PT Natrindo Telepon
Seluler/Lippo Telecom. Although CAC has held the license since
October 2003, the company has yet to provide 3G services.
CAC is an affiliate of Telecom Asia Orange, a leading cellular
operator in Thailand.
The 3G technology, which is used for the Wideband-Code
Division Multiple Access (WCDMA) radio network, is far more
advanced that the second-generation (2G) technology used in the
Global System for Mobile Communications (GSM) network.
The WCDMA offers substantially enhanced capacity, quality and
data rates than 2G technology, and can support new and more
demanding services, such as video streaming and video
conferencing through cellular phones, as well as concurrent
multiple services.
Cellular phone owners must change their handset if they wish
to upgrade to 3G services.
A number of telecommunications firms, including cellular
operators like PT Telkomsel, have applied for a 3G license to
anticipate growing demand for cellular services.
According to Suryadi, CAC is required to develop 939 base
transceiver stations (BTS) by 2005, but no signs have been
forthcoming from the company that it would fulfill its
commitment. The company is also obliged to develop 1,557 BTS in
2006 and 2,018 BTS in 2007.
In addition, CAC is required to develop BTS facilities
specifically in Jakarta, Banten, East Java, West Java,
Yogyakarta, Bali and West Nusa Tenggara during the first year, he
said.
He said CAC management had claimed it was still making
preparations to develop the required infrastructure.
In the long term, Suryadi said the government would consider
granting new 3G licenses to existing telecom operators rather
than new ones, as newcomers faced difficulties in fulfilling
their commitments to infrastructure development.