No more cellular operators needed

JAKARTA (JP): A business executive suggested yesterday that the government cancel its plan to license more companies to enter the mobile cellular telecommunications business, which has been tapped by too many firms.

Businessman Setiawan Djody told reporters that the government, which plans to select new operators to provide Personal Communication Networks (PCN), should be careful in increasing the number of mobile cellular telecommunications carriers.

The country currently has seven companies operating cellular mobile telecommunications, with three different systems. The digital Global System for Mobile (GSM) communications -- the most recent system introduced in the country -- is operated by PT Telkomsel, PT Satelindo and PT Excelcomindo. The Advanced Mobile Phone Service (AMPS) -- the analog system introduced earlier -- is operated by PT Metrosel Nusantara, PT Telekomindo and PT Komselindo. The third system is the Nordic Mobile Telephone, an analog service primarily installed in vehicles, which is run by PT Mobisel.

Besides the above mobile cellular communications systems, Indonesia also has the Cordless Telephone (CT-2) system, which is upgradable to the Digital Enhanced Cordless Telephone. The CT-2 is run by PT Telepoint.

"They (the operators) will become skinny cows," he said after signing a document for the acquisition of PT Telkomsel.

The government is expected later this year to launch an open tender to pick up an undisclosed number of PCN operators.

PCN is the next generation of the digital wireless telephone system that uses a light, inexpensive handset with a long battery life to communicate via low-power antenna.

PCN includes the Personal Communications System and the Digital Cordless System from Europe, the Personal Handy-phone Service developed by Japan and Code Division Multiple Access technology from the United States.

Djody said that mobile cellular telecommunications will be the "sexiest" business, especially in countries like China, India or Indonesia, with hundreds of millions of potential subscribers.

"The business will be unprofitable, especially for the new comers, who are required to invest a lot of money in setting up new networks," he said.

Telecommunications analysts believe that there have been at least 70 private consortia, comprising of local and overseas firms, expressing interest to participate in the planned PCN tender in Indonesia.

Worrying of losing their business or facing stiffer competition, the existing cellular operators cited Malaysia and Singapore -- which each have less than four mobile cellular telecommunications operators -- as examples.

"Many countries have halted the analog system and expanded the digital one. "Hong Kong and Australia have announced they would cut back on the utilization of the analog system by 2000," a cellular company executive said. (icn)