Govt to restrict mobile cellular operators
Govt to restrict mobile cellular operators
JAKARTA (JP): The government will carry out its plan to
restrict range of mobile cellular technology and the number of
operators, the secretary-general of the Ministry of Tourism, Post
and Telecommunications said yesterday.
Jonathan L. Parapak, speaking after the opening of the
ministry's annual coordinating conference, said the government
would no longer issue cellular licenses after the granting of 11
new licenses scheduled for next year.
"Seen from the range of technology and number of operators
already licensed (12) and those to be licensed (11) next year, we
will have enough systems and operators," he said.
The country currently uses three different systems in the
cellular mobile telecommunications provided by seven different
operators. The digital GSM, the most recent system introduced in
the country, is operated by Telkomsel, PT Satelindo and PT
Excelcomindo.
The Advanced Mobile Phone Service (AMPS), the analog system
introduced earlier, is operated by PT Metrosel Nusantara, PT
Telesera and PT Komselindo. AMPS can be upgraded into the Code
Division Multiple Access (CDMA) system which will soon be applied
by the existing three AMPS operators.
The third system applied in Indonesia is the Nordic Mobile
Telephone (NMT-450), the analog service primarily installed in
vehicles run by PT Mobisel.
The government is assessing some 30 bidders in the tenders for
11 new cellular licenses to operate two different systems,
including the Digital Cordless System (DCS-1800) and Personal
Mobile Phone Service (PHS) regionally.
In June, the government licensed five firms to operate DCS-
1800 and PHS in "exclusive regions".
The firms include PT Selnas and PT Indophone which will
operate DCS-1800 nationwide; PT Primasel which is to operate PHS
in East Java; two more firms, controlled by a consortium of the
state-owned PT Telkom, PT Indosat and PT Inti, which will operate
PHS in the greater Jakarta area and DCS-1800 in East Java.
The country will then have a total of 23 cellular operators
applying six different systems, with Greater Jakarta and East
Java as the key markets.
Minister of Tourism, Post and Telecommunications Joop Ave said
on Monday that the cellular licenses had "eternal operational
lifetime".
He added: "I don't think it's necessary to limit the
operational life of cellular licenses.
However, Parapak said the government still had the right to
cancel the licenses if the operators failed to perform well in
serving the public.
He said the licenses were not the same as the limited
exclusive rights secured by Telkom and Indosat.
The government awarded exclusive rights for Telkom to long-
distance calls until 2006 and domestic calls until 2011, and to
Indosat and PT Satelindo to provide international calls until
2005.
"The rights are different with (respective) licenses. We
awarded Telkom and Indosat the rights to support their initial
public offerings," Parapak said. (icn)