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First private int'l telecom company to start up soon

| Source: JP

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)

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