Indosat invests Rp 50b to set up multimedia firm

Indosat invests Rp 50b to set up multimedia firm

JAKARTA (JP): The state-owned international telecommunications
carrier PT Indosat has invested Rp 50 billion (US$21.4 million)
to set up a new multimedia company.

A senior Indosat executive, Budi Prasetyo, told The Jakarta
Post yesterday that the new company, PT Indosat Mega Media (IMM),
is 99.5 percent owned by Indosat and 0.5 percent by Indosat's
employee cooperative.

"The agreement establishing IMM was officially signed on Sept.
25," he said.

He said that choosing the multimedia business was part of
Indosat's diversification plans.

Indosat had earlier announced that it was exploring the
possibility of providing multimedia services and would budget
$13.5 million for the development of a pilot network in 1996.

The company recently acquired 40 percent of PT Yasawirya Tama
Cipta, a Jakarta-based firm producing video recordings for
television broadcasters.

Cellular

Indosat, together with the state-owned domestic
telecommunications operator PT Telkom, plans to help in the
establishment of a 500-meter tower in Kemayoran, Central Jakarta.
The planned tower is expected to become a multimedia center. It
is being constructed by PT Indocitra Graha Bawana, a consortium
involving businessmen Sudwikatmono, Prayogo Pangestu and Henry
Pribadi.

Meanwhile, PT Telkomsel and PT Satelindo, two operators of the
Global System for Mobile Communications (GSM), in which Indosat
owns 35 percent and 7.5 percent, respectively, plan to launch
service expansions in South Sulawesi and North Sumatra.

Satelindo, whose subscribers can use its GSM service in 14
countries under roaming agreements, is scheduled to begin
operating in North Sumatra today.

Satelindo will use seven Base Transceiver Stations (BTS) at
the Belawan seaport, the Pulau Brayan industrial zone, TVRI's
television complex, the Tembung area, Garuda area, Padang Bulan
area and the Cinta Damai area, all in North Sumatra, the company
said in a statement.

"By Oct. 28, there will be a total of 16 BTSs in service in
North Sumatra covering Binjai, Titipapan, Bandar Baru, Tuntungan,
Simpang Limun, Lubuk Pakam, Perbaungan, Tebing Tinggi, Pematang
Siantar, Simarjarunjung and Parapat," the statement said.

Satelindo last month launched its service in East Kalimantan,
the company's first expansion outside of Java and Bali.

Telkomsel, Satelindo's only competitor, is scheduled today to
launch its service in Ujungpandang, South Sulawesi.

Telkomsel's director, Garuda Sugardo, told the Post yesterday
that his company will be the first digital mobile cellular
operator to expand GSM service into the eastern part of the
country.

"We have six BTSs in Ujungpandang. A total 11 BTS will be in
service next month covering Ujungpandang to Pare-pare in South
Sulawesi. Three additional BTSs will be activated to cover
Sorowako in November," he said.

He said that Telkomsel expects to attract 20,000 subscribers
in South Sulawesi by the end of this year.

"Currently there are some 4,000 users of the analog cellular
system. The market of a 1.2 million population in Ujungpandang
has great potential," he said, adding that Telkomsel's outdoor
coverage in the city reaches 95 percent.

According to Garuda, today's expansion, scheduled to coincide
with national tourism, post and telecommunications day, is a kind
of breakthrough in cellular telecommunications. Telkomsel is also
committed to activating in December eight BTSs in Manado, North
Sulawesi, and eight others in Jayapura, Timika and Kuala Kencana
in Irian Jaya. (icn)