Govt appoints nine new cellular phone providers
JAKARTA (JP): The government has appointed nine companies to operate the Digital Cordless System and the Personal Handy-Phone Service in six areas of the country, the Ministry of Communications announced on Wednesday.
The Director General of Post and Telecommunication in the ministry, Sasmito Dirdjo, said the nine companies awarded the licenses were chosen from the 22 firms that won through to the final stage of the tender in late October.
"The Ministry of Communications has issued principle licenses to the nine companies," Sasmito told reporters at his office.
Principle licenses allow the companies to begin preparations for the services, however licenses to begin the operations have yet to be issued.
In June 1997, the government put 11 licenses to operate the Personal Communication Network (PCN) out to tender. The network includes the Digital Cordless System (DCS-1800) and the Personal Handy-Phone Service (PHS).
The PCN is a digital remote telephone system that uses light, inexpensive handsets powered by long-life batteries to communicate via low-powered antennas.
The DCS-1800 was developed from the Global System for Mobile Communications (GSM), which originally came from Europe, while the PHS was developed in Japan.
Sasmito said Astratel Nusantara Consortium has been appointed to operate the DCS-1800 in Sumatra, while PT Ariawest International won the license for West Java.
Mitra Perdana consortium will operate the DCS-1800 in Central Java, Natrindo Telepon Seluler Consortium in East Java, Primarindo Sistel Consortium in Kalimantan and Kodel Margahayu Consortium in the eastern region of the country.
The three winners of the PHS licenses are PT Jaya Telesarana Intisel for Sumatra, Patria Caraka Nusantara Consortium for West Java and Bima Investa Utama for Central Java.
The appointment of cellular providers was delayed until the end of October this year because of the monetary crisis. It was initially planned to award the licenses in December 1997.
Telecommunications bill
Sasmito also said the ministry is currently drafting a telecommunications bill which would open the sector up to both foreign and local investors.
The bill is expected to be completed by the end of this month, after which it will be submitted to President Habibie before being deliberated by the House of Representatives, he said.
The ministry will also draft a government regulation on the implementation of the law, which he said should be completed by January.
"The telecommunications bill is being drafted because of concerns that Law No.3, 1989 on telecommunications has been left behind by the progress made in telecommunications, both with regards to technology and industry concepts," Sasmito said.
The bill will end the monopoly held by the state companies PT Telkom and PT Indosat over the operation of telecommunications systems in the country, Sasmito said.
The bill also differentiates between the operators of networks, services and special services.
It will allow all foreign and local investors to operate domestic, long distance and international telephone networks.
However, the government intends to maintain the exclusive rights bestowed by permits given to the current network providers throughout their agreed lifespan, Sasmito added. (das)