No more cellular operators needed
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)