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.