Foreign telecoms operators eye RI
By I. Christianto
JAKARTA (JP): A number of overseas global satellite telecommunications operators are seeking alliances with local companies in order to tap into the country's telecommunications sector.
Most of them plan to launch services using either medium-earth or low-earth-orbit (LEO) satellites, some as early as the year 2000.
Among the Global Mobile Personal Communications by Satellite (GMPCS) players attracted to enter Indonesia are Globalstar; Odyssey Telecommunications International Inc; Intermediate Circular Orbit (ICO) Global Communications, developed by International Maritime Satellite (Inmarsat); the Afro-Asian Satellite Communications; Asia-Pacific Mobile Telecommunications Satellite; Ellipso; Global Communications; Signal; Marafon; Orbcomm; Spaceway; Teledesic; and Telesat Mobile Inc.
Indosat's president Tjahjono Soerjodibroto said last week that his company was negotiating with Globalstar of the U.S. to operate ground stations in Indonesia.
He said other GMPCS operators seek cooperation with Indosat in an attempt to expand their dealings to Indonesia.
According to existing regulations, foreign GMPCS operators are allowed to operate in Indonesia only under joint operations, joint ventures or joint-management agreements either with Indosat, which runs the international telecommunications business, or with PT Telkom, the provider of domestic telecommunications services.
Cost is the major competitive edge among operators. Iridium reported that the cost would be US$3 per minute including the space segment fee, gateway fee and local operators fees.
ICO reported it did not intend to provide service to very poor people. The company has compiled user group gradings, such as the higher income bracket, mining sector and airlines. The rate per minute is variable and less than $1.
Odyssey claimed the price could be reduced if operators could improve efficiency in the frequency spectrum. It means the price would depend on bandwidth.
Indonesia's telecommunications industry has grown rapidly in recent years. The country has a number of satellites, with some of them operated commercially.
Indonesia will also adopt a regional satellite-network digital telecommunications systems prepared by PT ACeS which is equally owned by PT PSN of Indonesia, PLDT Co of the Philippines and Jasmine International Public Co Ltd of Thailand.
Other domestic firms recently signed cooperation agreements with foreign GMPCS companies.
Indosat has set up a subsidiary called PT Indokomsat Lintas Dunia to provide ICO services and facilities. Indosat spent $12.87 million to acquire a 1.41 percent stake in ICO. The 10- satellite system is expected to be begin service in 2000.
The ICO system will permit mobile voice and data communications through a hand-held telephone anywhere in the world -- on land, sea or air.
Another firm, PT Citra Sari Makmur, a private value-added telecommunications provider which is 25 percent owned by Telkom, has been appointed by Constellation Communications Incorporated (CCI) of the U.S. as a service provider in Indonesia and Southeast Asia.
CCI is a consortium of Bell Atlantic International, a U.S. telecommunications giant, E-System Raytheon and Space Vest. CCI plans to operate the Equatorial Constellation Communications Organization (ECCO), a $550 million satellite-based telecommunications service using 12 LEO satellites.
The first launching is scheduled for the second half of 1999, while ECCO's commercial operation will commence in early 2000.
Telecommunications sources said the privately owned PT Satelindo had also participated in Odyssey and Iridium.
Odyssey, set up by TRW of the U.S. Teleglobe of Canada, will begin services around the globe by 1999. The system will use 12 satellites in the medium-earth orbit and seven earth stations with the first satellite to be launched in 1999
The Odyssey system, involving an investment of $2 billion, will use medium-earth orbits for its satellites,
Iridium, initiated by America's Motorola plans to develop another system called Iridium, at a cost of $4 billion, using 66 LEO satellites.
Satelindo intends to sign agreements for the two projects soon.
Globalstar
An executive of Globalstar, David C. Benton, told The Jakarta Post that his company had secured a slot in the Indonesian market as one of the company's shareholders, AirTouch Communications, had signed an agreement with Jakarta-based firm PT Intidaya Sistelindomitra.
Based on the agreement, AirTouch, a leading wireless communications company based in San Francisco, California, and Intidaya will offer Globalstar services in Indonesia.
AirTouch and Intidaya, a private Indonesian telecommunications operator, will apply for a license and establish operations to sell Globalstar services in Indonesia.
Intidaya, 25 percent owned by Telkom, will have primary operating responsibility, while AirTouch will be responsible for technical and marketing functions.
Globalstar is a low-earth-orbit satellite-based telecommunications system that will offer low-cost, high quality global telephony, data, fax, and position location services to areas currently underserved, or not served by existing wire-line and cellular telecommunications systems.
Globalstar will operate 48 satellites, with the first four satellites scheduled for launching later this year. The firm aims to commence commercial operations in 1998.
AirTouch, with a 6.4 percent stake, has exclusive service provider rights for Globalstar in the U.S., Indonesia and nine other countries.
Globalstar has been designed so that all calls, including international calls, enter Indonesia's existing terrestrial-based infrastructure from the local Globalstar ground-based gateway.
This gives existing service providers additional revenue opportunities, and permits local regulatory authorities to exercise their accustomed degree of regulatory control.
Users make or receive calls using hand-held or vehicle-mounted terminals similar to today's cellular telephones. Because Globalstar will be fully integrated with existing fixed and cellular telephone networks, Globalstar's dual-mode handset units will be able to switch from conventional cellular telephony to satellite telephony as required.
In remote areas with little or no existing infrastructure, users make or receive calls through fixed-site telephones similar to either phone booths or ordinary wire-line telephones.
Globalstar, based in San Jose, California, is a limited partnership led by Loral Space and Communications, Ltd, of New York City. Along with cofounder Qualcomm Inc of San Diego, California, the partnership includes 10 of the world's leading telecommunications service providers and equipment manufacturers.