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)