Cellular competition hots up in Kalimantan

BALIKPAPAN, East Kalimantan (JP): The war of cellular telecommunications services began in this province on Sunday with the launch of a Global System for Mobile communications (GSM) service by PT Satelindo here, in Samarinda and in Bontang.

Satelindo, which is owned by PT Bimagraha Telekomindo, Germany's DeTeMobil and the state-owned firms PT Telkom and PT Indosat, is challenging PT Telekomindo Primabhakti, which has run an analog Advanced Mobile Phone System in East Kalimantan for three years, and PT Telkomsel, which plans to activate its GSM service in East Kalimantan later this week.

Satelindo's cellular director, Saleh Gunawan, said that the company has invested some Rp 10 billion (US$4.23 million) installing five base transceiver stations here, three in Samarinda and another in Bontang.

"We expect to gain in the near future 5,000 subscribers in Balikpapan, 3,000 in Samarinda and 1,000 in Bontang."

Telkom's manager for Kalimantan, Bajoe Narbito, told The Jakarta Post that there are currently 3,000 analog system subscribers in Balikpapan, Samarinda and Bontang.

Saleh said that Balikpapan is Satelindo's first expansion area outside of Java and Bali.

Satelindo, which has procured equipment from Siemens of Germany for its expansion in East Kalimantan, has appointed four local dealers to market its GSM service in Balikpapan.

One dealer said that he has received 100 subscription inquiries.

Mayor of Balikpapan Tjutjup Suparna, who launched Satelindo's GSM service in the city, said that the service is expected to help improve social welfare in the city.

"There are currently 376,000 people living here. Development in the city is quite significant with property as one of the most booming businesses," he told the Post.

Satelindo's chief operating officer, Ronald Chesterton, said that the company, which runs GSM as well as international direct calls and satellite transmissions, has 180,000 customers in Java and Bali.

"We will expand our service to Pontianak in West Kalimantan and Palangkaraya in Central Kalimantan. By the end of this year, all big cities in Kalimantan and all main roads connecting them will be covered by Satelindo GSM," he said.

Satelindo began its GSM service in 1994. It will expand its service to Medan, North Sumatra, later this year. (icn)