Govt appoints nine new cellular phone providers

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)