Indosat to sign telecom project in Cambodia

Indosat to sign telecom project in Cambodia

JAKARTA (JP): The state-owned international telecommunications
company, PT Indosat, currently finalizing negotiations on a
project for telecommunication refurbishment in Cambodia, expects
to sign the contract next month.

"We expect to conclude negotiations by Monday and sign a
contract on the project here on Nov. 10," senior expert of
Indosat, D. Habimono Koesoebjono, told The Jakarta Post during a
break of the seminar on telecommunications held by the Pacific
Telecommunications Council (PTC) at the Borobudur Inter-
Continental hotel yesterday.

Under the planned contract, which will be signed by Indosat's
president and an official of Cambodia's Ministry of Post and
Telecommunications, a joint venture will be established with a
Cambodian party in developing the project, he said.

In September, Indosat won a lucrative project for Cambodia's
domestic telephone network, including the installation of 10,000
phone lines and renovation of the old cellular network utilized
by UNTAC (United Nations Transitional Authority in Cambodia).

The network, originally installed two years ago at a cost of
US$50 million by Telstra of Australia, is currently in disrepair.

Another source at the recently public-listed company said the
refurbishment project will be worth twice that of the original
installment and Indosat is likely to invest US$15 million in the
joint venture.

Six international telecommunications companies participated in
the tender, including Telstra, France Telecom, DeTecom of
Germany, two Thai companies Shinawatra and CP Telecom, and Korea
Telecom.

Meanwhile, Minister of Tourism, Post and Telecommunications
Joop Ave told reporters yesterday that the government encourages
both Indosat and the state's domestic telecommunications operator
PT Telkom to pursue feasibility studies on telecommunication
projects in various developing countries.

Joop told the two-day seminar that Indonesia, and several
other countries in the Asia-Pacific region, still need to
aggressively increase its telecom-density.

"Let me encourage PTC and its members to help these countries
in building their telecom infrastructures," he said.

He also said early next year Telkom will conduct studies on
telecommunication projects in African countries, including
Tanzania and Somalia, which will be financially supported by
Japan.

Inmarsat-P

Meanwhile, Indosat's president Tjahjono Soerjodibroto told
reporters that his company will participate in a US$2.6 billion
mobile satellite telephone project proposed by the International
Maritime Satellite Organization (Inmarsat).

"This is a future telecommunications business. We will be left
behind if we do not take part," he said.

Inmarsat is a leading global mobile satellite communications
operator, owned by 76 signatories -- telecommunications firms
from all over the world. Indosat became a member in 1986, and
controls a 0.26 percent stake in the London-based organization.

Tjahjono said his company has not yet discussed financial
conspiracy in the project which is called Project 21.

The project was first announced in 1991, as a major initiative
to develop advanced satellite based personal mobile
communications system to meet market demands for the remainder of
the decade and into the next century.

The principal development of the project's program is called
Inmarsat-P which will use 12 satellites in an intermediate
circular orbit system for its space segment. Scheduling for full
service availability will be in September 2000.(icn)