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)