Indosat plans to use more submarine cables in future

JAKARTA (JP): Publicly listed state-owned telecommunications company PT Indosat will boost the use of submarine cables to support its future transmission activities.

Indosat planning and engineering general manager Djoko Prajitno said submarine cables were more favorable due to their durability, cost effectiveness and higher transmission quality.

A concentration of submarine cables, however, would not necessarily terminate the company's use of satellite transmission facilities, he said.

"We are going to continue leasing some circuits of the Intelsat satellite, but it will be used more as a backup for the submarine cables," he said.

Indosat was utilizing submarine cables more than the satellite, he said, adding that around 75 percent of the company's current telecommunications products and services were supported by submarine cables.

He said submarine cables had a higher bandwidth capacity, faster and clearer transmission, a longer service life of up to 25 years and more economic value.

Satellite circuits had limited frequency, slower transmission, were sensitive to weather change and had a maximum 15-year life, he said.

"The only advantage satellites have that cable does not is global coverage. Submarine cables are good for regional coverage ... that's why we have to participate in many regional and international cable projects," he said.

Indosat manager of planning and engineering for submarine cables, Marwan Batubara, said the company had invested more on international consortiums to install submarine cables worldwide than on leasing satellite circuits.

About 80 percent of the company's investment funds were used to finance international and regional submarine cable projects, he said, adding that Indosat was so far involved in the development of 19 submarine cable projects.

"That's why we are not interested in developing satellites like other telecommunication companies here have done," he said.

One of the projects, the SEA-ME-WE 3, which links the Middle East, Southern Asia, Australia and Western Europe regions, commenced its commercial operation last month, he said.

He said Indosat, which invested about US$48 million in the $1.4 billion submarine cable project, had direct access to the cables because it spent much more money in building a landing point for the network in its area.

The other projects include the SEA-ME-WE 2, a project linking Southern Asia and the Middle East in which Indosat holds a 3.3 percent stake valued at about $20 million, and the APCN-1, a project linking countries in Asia-Pacific regions with Indosat's investment reaching $20 million as well.

Marwan said Indosat would continue investing in other submarine cable projects. The company is considering to invest in the SAFE project, which will link countries in Southern Africa to those in Eastern Asia, and the APCN-2.

He said it was unlikely Indosat would participate in the Oxygen cable project, which is currently being prepared by other state-owned telecommunications companies PT Telkom and PT Satelindo, due to the project's uncertain schedule and lack of feasibility. (cst)