Thu, 22 Apr 1999

Iridium users can access local GSM network

JAKARTA (JP): Iridium satellite mobile phone users visiting the country can now access the local global system of mobile (GSM) network of PT Excelcomindo Pratama and save up to 75 percent on their telephone costs, an executive of Excelcomindo said on Wednesday.

Customer service and corporate affairs director Rudiantara said Iridium users here would pay US$1.5 per minute for roaming Excelcomindo's GSM network, a fraction of the regular cost.

"On the usual basis, international roaming would cost Iridium users up to $7.5 per minute," he said.

Excelcomindo is the first GSM operator in Indonesia, and second in Southeast Asia after Thailand, to enable Iridium users to roam in the local GSM network to their destinations, he said.

The Iridium system in Asia is provided by Pacific Iridium Telecommunications Co. Ltd, a Taiwan-based telecommunications firm owned by Iridium LLC of the U.S.

Iridium LLC operates 66 satellites through its 12 gateway operators worldwide, serving about 9,000 subscribers.

Rudi said the memorandum of understanding on roaming cooperation between Excelcomindo and Pacific Iridium was actually signed last year, but came into practice only this week due to thorough preparation and testing processes, including on technical matters and customer billing.

In May, users of Excelcomindo's GSM-XL will be able to access the Iridium satellite network whenever they travel to overseas destinations where the GSM network is unavailable, he said.

"We estimate the addressable market of GSM-XL users to access the Iridium satellite network overseas is about 3,000 out of the total 200,000 GSM-XL and Pro-XL active subscribers," he said.

Asked about the financial benefits of the agreement to Excelcomindo, Rudi said the company would charge Pacific Iridium a roaming fee of $1.5 per minute per user, whereas Iridium will charge its subscribers a surcharge of about 15 percent for accessing through Excelcomindo's network.

Rudi did not disclose the charge for GSM-XL users who access Iridium satellite network overseas.

Most users of the Iridium network here and overseas are workers in the maritime, forestry, search and rescue and oil fields, he said.

"Those are the places where the GSM network is sometimes not available," he added.

GSM-XL users who want to access the Iridium satellite network overseas need special satellite cellular telephones, such as Motorola's satellite series.

Excelcomindo began operations in late 1996 and currently serves Greater Jakarta, West Java, Central Java, East Java, Bali and Lombok.

It is owned by Nynex Corp. of the U.S., Japan's Mitsui, Asian Infrastructure Fund and Indonesia's PT Telekomindo Primabhakti. (cst)