Mobile-8 launches first fully wireless phone service
Mobile-8 launches first fully wireless phone service
Sari P. Setiogi, The Jakarta Post, Jakarta
PT Mobile-8 Telecom launched on Monday the country's first
fully wireless code division multiple access (CDMA) mobile phone
service.
The relatively new company aims to become the third-largest
mobile phone operator after three years.
Mobile-8, set up at the end of last year, is 70.52 percent
controlled by publicly listed PT Bimantara Citra. The remaining
shares are held by PT Centralindo Panca Sakti -- a subsidiary of
Bimantara -- (9.54 percent), Asialink (8.5 percent), Qualcomm,
Samsung Electronics, Samsung Corporations, KTF Korea and
Converse. No data is available on the extent of ownership of the
last group of shareholders.
The brand name of the company's wireless phone service is
Fren.
"We expect Mobile-8 could have 1 million subscribers by the
end of 2004," Bimantara president Hary Tanoesoedibjo told a media
conference.
He added that the company planned to provide up to 2 million
lines by the end of 2005 in a bid to become the third-largest
player in the country's cellular phone sector.
To achieve this ambitious target, the company is relying on
its CDMA-based technology, which can provide a high-speed data
access capability of about 80 kilobytes per second (kbps).
In comparison, global system for mobile communications (GSM)
technology offers data access at only 20 kbps to 30 kbps. The
country's largest mobile phone operators, PT Telkomsel and PT
Satelindo, rely on this technology.
"I'm very confident at the data communications growth here,"
said Mobile-8 president BT Lim, pointing out that when the SMS
service was launched three years ago by mobile operators the
service contributed only about 3 percent to operators' revenue
but that is now up to 20 percent.
"I believe data communications will rapidly increase here."
Mobile-8 will not directly compete with fixed-wireless network
operators which offer cheaper service, but will compete with GSM
operators. Unlike fixed-wireless operators, the other operators
have to pay frequency charges to the government.
According to Hary, Mobile-8 is allocating around $200 million
in initial investment, including the cost of acquiring three
failed advanced mobile phone service (AMPS) operators: PT
Komselindo, Metrosel and Telesera. The three failed in
competition with GSM operators.
Eyebox:
Fren price charges:
1. Fren to Fren
- Local Rp 800/minute
- Nonlocal Rp 1,500/minute
2. Fren to fixed line
- Local Rp 800/minute
- Zone 1 (