Excelcomindo to build network in Aceh

Leony Aurora, The Jakarta Post, Jakarta

In the face of the utter destruction caused by the tsunamis in Nanggroe Aceh Darussalam, cellular operator Excelcomindo plans to expedite the construction of its network there with an investment of up to US$20 million in the first phase.

Marketing business solutions director Rudiantara said on Tuesday that the company had completed a survey in Aceh on Dec. 24, two days before the catastrophic quake and tsunamis crushed houses along with most infrastructure.

"We'll speed up the deployment (of installation) there," he said. Another team of surveyors will be sent next week to observe current conditions.

Excelcomindo, the country's third largest operator with pre- paid products Jempol and Bebas and post-paid Xplor, will build 20 to 25 base transceiver stations in Aceh province, including in severely damaged areas such as Banda Aceh, Meulaboh and Sabang.

"We'll invest between $15 million and $20 million in the first phase of network construction," said Rudiantara. It is unclear as to how soon the service can be used.

The operator holds about 15.5 percent of Indonesia's cellular market with some 4.4 million customers. Capital expenditure for 2005 is yet to be announced, pending a shareholders meeting, but is reported to exceed the $200 million it spent last year.

Some 27.3 percent of Excelcomindo's stake was recently acquired by Malaysia's biggest telecommunications company, Telekom Malaysia. Some 60 percent of the company is owned by local investors while the other 12.7 percent by Asia Infrastructure Fund.