Indosat in Cambodia

Indosat in Cambodia

PHNOM PENH (Reuter): The Cambodian government and the Indonesian company Indosat have signed a contract for a US$15 million joint venture to rehabilitate Cambodia's national telecommunications network.

The satellite-based network was set up by the United Nations during preparations for the May 1993 elections and handed over to Cambodian authorities last February.

The joint-venture was agreed last week between Indosat president Tjahjono Soerjobibroto and Cambodian Secretary of State for Post and Telecommunications So Khun.

"First, we will upgrade, install and expand the system to all 21 provinces, which will take three years," Indosat representative in Cambodia Iman Budi said in a telephone interview.

"The joint venture will involve the setting up of a new company, Camintel, in which Indosat will have a 49 percent stake," he said.

Once the telecommunication system is operational nationwide, Indosat will help with maintenance, sales and collection of fees, Budi said.

The contract runs initially for 11 years, with the possibility of a five-year extension.