Indosat to try out its 3G technology
The Jakarta Post, Jakarta
Indonesia's second largest telecommunications company PT Indosat aims to try its third generation (3G) technology next month to support its bid for a license and increase its customers.
"We will start with a pilot project in August. The pilot project is designed to monitor the market response, the technical implications, how to deal with customer service and how to offer the technology," the company's newly elected president director Hasnul Suhaimi told reporters in a gathering on Monday.
With 3G technology cellular phone operators such as Indosat can provide multimedia facilities at faster speeds and with much more data than the cellular technology now being used here, which is classified as 2.5G.
Hasnul said the tryout of the 3G technology would support the company's vision to become a leading cellular operator.
For that purpose, the company allocated US$900 million, or 80 percent of its Rp 1 trillion bonds released to the market recently, to expand its cellular business.
He also added that one of the aims of the expansion is to get the 3G license, which is only granted by the government.
"Hopefully with this pilot project, we will get the license next year and launch the product later on," Hasnul told The Jakarta Post.
Only two companies, PT Natrindo Telepon Seluler, or Lippo Telecom, and PT Cyber Access Communications (CAC), an affiliate of Thailand's leading cellular operator Telecom Orange Asia, were granted the license by the government in 2003.
The government plans to offer additional frequencies to companies that will operate cellular services based on 3G technology if they can develop their businesses.
Wityasmoro Sih Handayanto, the director of planning and project development, said that Indosat would try its 3G technology in Jakarta and Surabaya, the two biggest cities in the country.
"Applying 3G technology is a strategic business development because it carries high-band-width and high capacity. Operators with many subscribers like us should apply the technology," he said.
As of June, Hasnul said that Indosat recorded 13 million subscribers and targeting another one million by the end of the year.
He also said that the company would expand its coverage by building more BTS (Base Transceiver Stations) that would cover over 400 regencies in the country, from its coverage capacity of 383 regencies. (006)