First private int'l telecom company to start up soon

JAKARTA (JP): Telephone subscribers will soon have a choice when choosing international telecommunication services because state-owned PT Indosat will soon get a new competitor.

"As Indosat will have PT Satelindo for a competitor in the international calling business, services will become essential in attracting customers," Directorate General of Post and Telecommunications Djakaria Purawidjaja told reporters here yesterday after opening a seminar on an alternative to penetrating the telecommunications market in the Pacific.

He said that customers will be able to select which of the two operators offers better service.

Satelindo, the country's first private international telecommunications operator, will begin operating in August or September with an initial code number of 008, he said.

The code for Indosat's international service is 001.

Djakaria said that in allowing the two companies to compete, the government will prepare technical regulations on inter- connection, numbering, tariffs and other items related to the telecommunications business as there will no longer be a government monopoly in both the domestic and international telecommunications businesses.

Private

The government is inviting investors from the private sector to get involved in telecommunications projects to help improve the industry throughout the country. Several cooperation schemes can be developed between the state-owned domestic telecommunications company PT Telkom and private companies, such as establishing joint ventures, joint operations on a revenue- sharing basis and management contracts.

Joint ventures have already been set up by Telkom and private companies, including Satelindo, PT Ratelindo, PT Pasific Satelit Nusantara (PSN), PT Bangtelindo, PT Telekomindo, PT Lintas Arta and PT Celcom.

Satelindo, operating in the satellite and cellular telephone business, is 30 percent owned by Telkom, 10 percent by Indosat, and 60 percent by PT Bima Graha, an affiliate of PT Bimantara Citra.

Djakaria said that Satelindo will receive an operational license for international calls soon after it conducts trial operations.

Tariffs on international calls handled by Satelindo will likely be similar to those of Indosat, which divides destinations into several zones.

"For international calls, we should refer to the regulations set by the International Telecommunications Union," he said.

The director general also said that his office will review tariffs for domestic calls.

He added that domestic tariffs will likely be lowered. (icn)