Hong Kong firm eyes RI's cellular phone business
Hong Kong firm eyes RI's cellular phone business
JAKARTA (JP): Hong Kong business group Hutchison Whampoa Ltd
is looking for a niche in Indonesia's lucrative cellular mobile
telecommunications business.
Khoo Chek Ngee, managing director of Hutchison Telecom, a
telecommunications affiliate of Hutchison Whampoa, told reporters
here yesterday that his company had set up a consortium with
Natrindo and Lippo Group of Indonesia to participate in the
country's digital cellular business.
"We will conduct a feasibility study on personal
communications networks in Indonesia," he said.
He said that the consortium would then participate in a tender
on digital wireless telecommunications services, expected to be
held later this year.
The government will hold a tender in the near future to select
some operators of wireless telecommunications using new
generation systems, including the personal communications system,
the personal handy-phone service developed by Japan, the DCS-1800
system from Europe and code division multiple access technology
from the United States.
Most of the improved digital wireless telephone systems
operate at high frequencies, between 1,800 and 1,900 megahertz.
The government plans to launch a personal handy-phone service
pilot project soon in Surabaya, East Java, and a DCS-1800 system
project in Jakarta.
In addition to Lippo and Hutchison Telecom, a number of
private conglomerates and state-owned firms, including PT Indosat
and PT Inti, have prepared themselves to take part in the much-
awaited tender.
In addition to his consortium announcement, Khoo was here
yesterday to witness the launch of a paging service called
Personal.
Hutchison Telecom is one of the developers of Personal, which
is operated by PT Hutchison Sewu, a joint venture company. The
company is 42.5 percent owned by Hutchison Telecom, 42.5 percent
by PT Gunung Sewu Kencana, a subsidiary of the Gunung Sewu group,
10 percent by the foundation of employees of the office of the
Coordinating Minister for Political Affairs and Security and 5
percent by the foundation of the Association of Retired Military
Officers.
The Gunung Sewu group has more than 40 subsidiaries, operating
businesses of food commodities, properties, agribusiness and
manufacturing.
Hutchison Sewu's president, Josep Lay, said yesterday that his
company would invest Rp 8 billion during the first year of
operation.
"The investment will reach Rp 20 billion in the third year,"
he said.
He said that Hutchison Sewu expected to net 2,000 subscribers
in the first year and 125,000 subscribers within the next four
years. (icn)