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