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)