Governmentt likely to invite more 3G players
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.