Governmentt likely to invite more 3G players

Sari P. Setiogi, The Jakarta Post, Jakarta

The government said on Monday it was likely to invite more players to provide the most advanced third generation (3G) mobile service in the country.

The statement came only days after the government announced on Wednesday that it had picked PT Cyber Access Communication as the sole winner of the tender for the 3G service license.

"Cyber Access is going to do a sort of trial project.

"For the second phase, it is possible for prominent players (in Indonesia's telecommunication sector) to join the business," Directorate General of Post and Telecommunication spokesman I Ketut Prihadi at the office of the Minister of Transportation told The Jakarta Post on Monday.

Cyber Access will be given three years to build its infrastructure and the government will review its performance before issuing an operational license, Ketut said.

"It might take about four years before we launch the second phase," Ketut said.

Cyber Access is not well known in the country's telecommunication business, and as such, its winning the contract has surprised many telecommunication business observers.

The government only allowed new players to participate in the tender, with the criteria that bidders should be affiliated with a world-class telecommunication provider and have a customer base of at least 1 million.

Ketut said Cyber Access' shareholders included Thai conglomerate Charoen Pokphand and its subsidiary, TelecomAsia.

TelecomAsia is Thailand's leading provider of communications services, as well as the largest fixed line provider in that country.

Some analysts have voiced concerns over the government's decision to select only one company as the winner, as more than one licensed service provider would make the business more competitive and consumers would get better services.

"With more players, people would become more educated and the market would be more active in responding to the new technology," telecommunication expert Roy Suryo told the Post.

He also regretted that the government had thus far withheld information on the process leading to the selection of Cyber Access as the winner of the tender.

"The public deserves (to know) the information," he said.

Ketut said the government had decided not to publicly disseminate information on the process, as confidential data was submitted to the selection committee, and that revealing this data could affect those companies affiliated with the bidders.

The 3G technology enables users to send voice, digital and video information as it combines a mobile phone, laptop and video monitor.