Indosat ties up with Mega Asia

Indosat ties up with Mega Asia

JAKARTA: Telecommunications firm Indosat signed on Wednesday a preliminary agreement with Mega Asia Consortium for the development of a fixed wireless network in Jakarta and Surabaya over the next three years.

Under the preliminary agreement, the consortium will develop 450,000 fixed wireless lines in Jakarta and surrounding areas and another 250,000 lines in Surabaya and surrounding areas during the three-year period, Indosat said in a statement.

The consortium comprises Bakrie Communication Company, Tomen Corporation, PT Asiabumi Piramida and PT Saranainsan Muda Selaras.

The consortium will secure its own finances to build the network based on Indosat's license.

It will operate the network for about 10 years, with the revenue to be shared with Indosat. After 10 years of operation, the consortium will transfer the network to Indosat.

"The revenue-sharing contract period could be longer or shorter, depending on the return on the project's investment," Indosat said.

The project will use CDMA 2000-1X technology. The capital expenditure for the project is estimated at US$164 per line or about $115 million for the total 700,000 lines. -- JP