Crisis delays appointment of new cellular providers
Crisis delays appointment of new cellular providers
JAKARTA (JP): The currency crisis has forced the government to
delay until 1998 the appointment of 11 new cellular providers to
operate the Digital Cordless System and the Personal Handy-phone
Service regionally in six areas of the country.
Minister of Tourism, Post and Telecommunications Joop Ave said
here yesterday that the government decided, after a series of
assessments, to postpone the announcement of the winners,
originally scheduled for last September.
The rupiah turmoil has affected a wide range of business
sectors including the prospective cellular operators, Joop said.
"Even if we announced the winners, they (the new cellular
operators) would not have any money to start the projects," he
said.
Last September, the government announced the postponement or
review of government and state-related projects worth Rp 105
trillion (approximately US$30 billion) as part of the drastic
measures initiated to cope with the currency upheaval.
As part of the retrenchment program, the government also
decided to postpone Rp 38.92 trillion worth of investment
projects sponsored by state and private companies and to review
other projects worth Rp 62.69 trillion.
Joop said that the cellular tender process was now in a pre-
qualification phase, in which 36 consortiums were participating.
"I have notified the 36 consortiums of the delay. Those who
want to withdraw from the tender can submit written notifications
and the government will return their Rp 200 million financial
guarantee," he said.
The government would repay the funds accordingly based on the
rules. "But withdrawing parties cannot participate anymore in the
tender," he said.
Parties still interested in the tender should also write a
notification to his office by Monday at the latest, Joop added.
He said that the tender would then be reevaluated quarterly.
"Next January will be the first quarterly review. We will
evaluate the situation. If necessary, the tender will be
postponed for one year."
Last June, the government put up for bid 11 licenses to
operate the Personal Communication Network (PCN) which includes
the Digital Cordless System (DCS-1800) and the Personal Handy-
phone Service (PHS).
The PCN is a digital remote telephone system that uses light,
inexpensive handsets with long-life batteries to communicate via
low-powered antennas. The DCS-1800 was developed from the Global
System for Mobile communications (GSM) originally from Europe,
while the PHS was developed by Japan.
The 11 licenses include six regional licenses to operate the
DCS-1800 in Sumatra, West Java, Central Java, East Java,
Kalimantan and the eastern areas and five regional licenses to
operate the PHS in Sumatra, West Java, Central Java, Kalimantan
and the eastern islands.
Secretary-General of the Ministry of Tourism, Post and
Telecommunications Jonathan L. Parapak said that among the
bidders are the partners of PT Telkom (in developing and
operating telecommunications networks outside the greater Jakarta
area and East Java), PT Pramindo, PT Ariawest and PT Mitra
Global. (icn)
JAKARTA (JP): The currency crisis has forced the government to
delay until 1998 the appointment of 11 new cellular providers to
operate the Digital Cordless System and the Personal Handy-phone
Service regionally in six areas of the country.
Minister of Tourism, Post and Telecommunications Joop Ave said
here yesterday that the government decided, after a series of
assessments, to postpone the announcement of the winners,
originally scheduled for last September.
The rupiah turmoil has affected a wide range of business
sectors including the prospective cellular operators, Joop said.
"Even if we announced the winners, they (the new cellular
operators) would not have any money to start the projects," he
said.
Last September, the government announced the postponement or
review of government and state-related projects worth Rp 105
trillion (approximately US$30 billion) as part of the drastic
measures initiated to cope with the currency upheaval.
As part of the retrenchment program, the government also
decided to postpone Rp 38.92 trillion worth of investment
projects sponsored by state and private companies and to review
other projects worth Rp 62.69 trillion.
Joop said that the cellular tender process was now in a pre-
qualification phase, in which 36 consortiums were participating.
"I have notified the 36 consortiums of the delay. Those who
want to withdraw from the tender can submit written notifications
and the government will return their Rp 200 million financial
guarantee," he said.
The government would repay the funds accordingly based on the
rules. "But withdrawing parties cannot participate anymore in the
tender," he said.
Parties still interested in the tender should also write a
notification to his office by Monday at the latest, Joop added.
He said that the tender would then be reevaluated quarterly.
"Next January will be the first quarterly review. We will
evaluate the situation. If necessary, the tender will be
postponed for one year."
Last June, the government put up for bid 11 licenses to
operate the Personal Communication Network (PCN) which includes
the Digital Cordless System (DCS-1800) and the Personal Handy-
phone Service (PHS).
The PCN is a digital remote telephone system that uses light,
inexpensive handsets with long-life batteries to communicate via
low-powered antennas. The DCS-1800 was developed from the Global
System for Mobile communications (GSM) originally from Europe,
while the PHS was developed by Japan.
The 11 licenses include six regional licenses to operate the
DCS-1800 in Sumatra, West Java, Central Java, East Java,
Kalimantan and the eastern areas and five regional licenses to
operate the PHS in Sumatra, West Java, Central Java, Kalimantan
and the eastern islands.
Secretary-General of the Ministry of Tourism, Post and
Telecommunications Jonathan L. Parapak said that among the
bidders are the partners of PT Telkom (in developing and
operating telecommunications networks outside the greater Jakarta
area and East Java), PT Pramindo, PT Ariawest and PT Mitra
Global. (icn)