Nynex joins Indonesian digital cellular venture

Nynex joins Indonesian digital cellular venture

NEW YORK (UPI): Nynex Corp. announced Wednesday it will buy a
23 percent stake in Excelcomindo, a digital cellular venture
aimed at the untapped Indonesian market of 195 million.

Nynex did not disclose the value of the investment, but called
it the largest U.S. interest in the Indonesian telecommunications
market to date.

Nynex spokesman Dave Frail said the partners estimate the
venture will require US$800 million in capital investment and
added Nynex and two other non-Indonesian partners plan to invest
$250 million. Frail noted the partners have agreed not to
disclose the value of their individual investments.

Excelcomindo plans to begin offering digital mobile telephone
service based on the European global standard for mobile (GSM)
system beginning in mid-1996 and to reach large Indonesian cities
throughout the country by 1998.

The New York-based regional Bell operating company said the
investment builds on its other investments in neighboring
Thailand and the Philippines.

Indonesia, the world's 15th largest nation with more than
17,000 islands, has one of the lowest telephone penetration rates
in the world -- about 1.8 telephone lines per 100 people, Nynex
said.

Its current mobile communications market comprises between
100,000 and 150,000 subscribers on four regional analog networks
and two recently licensed national GSM networks, Nynex said.

Nynex said it will be the strategic operating partner with PT
Telekomindo, the major Indonesian shareholder; Mitsui, the
Japanese trading firm; Asian Infrastructure Fund, an Asian
investment firm; and several local investors, including Santana
Telekomindo, Yayasan Kartika Eka Paksi, and Yayasan Tridaya.

Nynex, Mitsui and the Asian fund are contributing the $250
million, the spokesman said.

"A very low telephone penetration rate coupled with rapid
economic-growth have led to a dramatic increase in demand for
telecommunications in Indonesia," said Frederic Salerno, Nynex
vice chairman -- Finance and Business Development. "Digital
cellular service using state-of-the-art engineering and
technology is an ideal way to rapidly make telephone service
available in densely populated cities."

Excelcomindo will hold one of three nationwide licenses for
GSM cellular service. The new company represents Nynex's largest
international cellular venture to date.