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 (<200 km) Rp 2,400/minute

- Zone 2 (

3. Fren to other mobile operators

- local Rp 1,500/minute

- nonlocal Rp 3,800/minute

4. SMS Rp 350/message 5. Roaming charge Free 6. Internet & data Free during promotion

(until April 2004)