Globalstar seeks local partner

Globalstar seeks local partner

JAKARTA (JP): Globalstar, an alliance of worldwide
telecommunications and aerospace firms, is looking for a
strategic partner in Indonesia to set up a join venture to expand
its global satellite system.

Globalstar's spokesman, David C. Benton, said yesterday that
the consortium comprises leading firms including France Telecom
and Alcatel of France, Deutsche Aerospace, Dacom and Hyundai of
Korea, AirTouch Communications and Qualcomm of the United States.

"Our project is a low-earth-orbiting satellite-based digital
telecommunications system which will offer wireless telephone and
other telecommunications services worldwide," he said.

He also said that Globalstar, which will use 48 satellites,
expects to begin launching its first four satellites in the
middle of 1997 and to commence initial commercial operation via a
24-satellite constellation in 1998.

"Full coverage date is expected to occur in the first half of
1999. Globalstar expects to require capital of approximately
US$1.9 billion from inception through the full coverage date and
to begin generating positive cash flow in 1999," he said.

Benton said that Globalstar's system allows users to make or
receive calls using hand-held or vehicle-mounted terminals
similar to today's cellular phones, through fixed telephones
similar either to phone booths or ordinary wire-line telephones
and through data terminals and telecopiers.

Each subscriber terminal will communicate through a satellite
to a local Globalstar service provider's interconnection point
(gateway) which will connect into existing telecommunications
networks, he said.

"AirTouch Communications is now looking for a strategic
partner or partners to establish a join venture which will
operate about three gateways in Indonesia," Benton said, adding
that each gateway will cost between $2.5 million and $5 million.

"We are confident that we can enter Indonesia
telecommunications market. Besides, this business is very
lucrative," he said.

The country's telecommunications industry has been growing
rapidly in the least few years. In the coming years, Indonesia
will also adopt a couple of satellite-network digital
telecommunications systems, including the Asian Mobile Satellite
system which is developed by the Asia Cellular Satellite System,
owned by Pasific Satelit Nusantara of Indonesia, Philippines Long
Distance Telephone Co. of the Philippines and Adisai Bodharamik
from Jasmine International Public Co. Ltd. of Thailand.(icn)