Nynex to expand telecom business in Indonesia
Nynex to expand telecom business in Indonesia
HONG KONG (JP): Nynex Network Systems Company, a divestiture of the Bell system based in New York, plans to expand its business in Indonesia as part of its global market strategy to strengthen its operations in the Asia-Pacific region.
The president and group executive of Nynex Worldwide Services, Richard Blackburn, said here on Tuesday said that the company's target is to capture a 10 percent share of the worldwide telecommunications market and "become the number one provider of communication infrastructure in the Asia-Pacific".
The region is currently dominated by NTT, AT&T and DBP Telecommunications in telecommunications operations and Alcatel, Siemens, NEC and AT&T in equipment vending.
Daniel Petri, vice president of Nynex Worldwide Services, said that in Indonesia, Nynex plans to develop fiber-optic cables in addition to its network infrastructure programs, which are already underway.
Plans for a Fiber-optic Link Around the Globe (FLAG) cable passing through Indonesia have already been drawn up, but are presently suspended until agreements are reached with its Indonesian partners, PT Satelindo and PT Indosat.
"We were in the process of discussing the project ... but we have deferred to a later date," Petri told The Jakarta Post.
Nynex has already completed the first stage of talks with the two companies, but uncertainty arose on the question of the most suitable landing point for the project.
Petri explained that the FLAG system, of which Nynex is the managing sponsor, would be the world's longest undersea fiber- optic cable, following the 27,000 kilometer sea route between Britain and Japan via the Mediterranean and Indian Ocean regions, at the time of its completion next year.
The cable currently has landing points in Britain, Spain, Italy, Egypt, the United Arab Emirates, India, Thailand, Malaysia, Hong Kong, China, South Korea and Japan.
Prospect
Michael Heath, a senior vice president and managing director for business development, who is based in the company's Hong Kong office, said that Nynex also plans to continue expanding network construction projects in Indonesia, joining hands with partners such as Rajawali Group, PT Wahana Esa, Bimantara Group's PT Elektrindo Nusantara and Pertamina's PT Elnusa.
"The prospect in Indonesia is promising, although it may take some time to sort out," Heath said.
Nynex is currently preparing network construction projects in Indonesia to build 70,000 lines under a revenue-sharing scheme with local partners.
Nynex was selected two years ago in a bid by state-owned PT Telkom ago to build 100,000 lines under the Telecom III Package I project.
The project, which is now completed, was a major expansion funded by the World Bank.
Nynex is a partner in Indotel, one of the 12 consortia selected last year in a pre-qualification round for developing two million lines across the country. Winners of the $10 billion project have yet to be announced.
Robert Anderson, a vice president for business development, explained that because Nynex provides services -- which include designing, building, integrating and operating communications systems -- it does not produce equipment.
"We are not tied to a certain product or manufacturer. Thus, we can choose which products will best meet the requirements of an operation," he said.
With total assets of $30.1 billion, Nynex gained operating revenues of $13 billion last year, with a net income of $793 million.
Its activities are conducted in Thailand, China, Indonesia, the Philippines, Japan, Gibraltar, Greece, Poland, the Czech Republic, Britain and other places.(pwn)