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)