Official expects cellular tenders to be transparent

Official expects cellular tenders to be transparent

JAKARTA (JP): A senior official of the National Development
Planning Board (Bappenas) expects that the most-awaited cellular
telecommunications tender will go transparent even before the
lucrative bids are opened by the government.

"It will be very fair if the government, before the tenders
are opened, announces first how it will evaluate the
applications," Bappenas Deputy Chairman Rahardi Ramelan told
reporters after speaking at a seminar organized by the Indonesian
Transport Society at the headquarters of Garuda Indonesia
yesterday.

He said that based on Presidential Decree No. 16/1995, the
government must announce the evaluation system in any open tender
to warrant fairness and transparency.

He admitted that in some cases, however, Bappenas was
disappointed to learn that an unexpected firm which had never
been involved in a tender often turned out to be the winner.

"I hope the cellular telecommunications tenders will be
transparent and fair, in spite of the names standing behind the
participating parties," Rahardi said.

By the end of last month, there were at least 120 companies
already submitting applications for the government's licenses to
provide Personal Communication Network (PCN) services in the
country, even though the government has not yet officially
announced when the tender for such a business will be opened.
Most of the bidders are backed by "high-level" names.

Rahardi, who is also the chief commissioner of PT Telkomsel,
said that Bappenas would not be involved in the tenders, which
will be the first ever held in the country's cellular
telecommunications history.

In a list leaked to the press, the Ministry of Tourism, Post
and Telecommunications has registered the firms to be selected in
a prequalification process. Among the names on the list were
Probosutedjo, the half-brother of President Soeharto (with his
company PT Citra Buana Nusa); Sudwikatmono, a foster brother of
President Soeharto and Siti Hutami Endang Adiningsih Soeharto,
one of the President's daughters (PT Cellnet Nusantara).

Executives of leading companies and business groups interested
in the projects included Peter Sondakh of Telekomindo, James T.
Riady of Lippo, Fadel Mohammad of Bukaka and hotelier Pontjo
Sutowo.

Other names on the list were Agus Kartasasmita, Nunun
Daradjatun, Dewi Motik Pramono, Mrs. Nuryana Prasetyo, Alex E.
Kawilarang, Mrs. Syaukat Banjaransari, Let. Gen. (ret.) Kemal
Idris, Hari Indra Utama Tahir, Roy Rahajasa Yamin and M. Arifin.

There were also young professionals, including Thareq K.
Habibie, a son of State Minister of Research and Technology B.J.
Habibie, Isfan Fajar Satryo Try Sutrisno, a son of Vice President
Try Sutrisno and Ary Sigit Soeharto, one of President Soeharto's
grandsons (PT Ari Citra Adhitama).

Other parties registered on the list included Mrs. Hartini
Soekarno, Mrs. Nelly Adam Malik and Mrs. Rahmi Hatta;
Coordinating Minister for Political Affairs and Security Soesilo
Soedarman; former Air Force chief marshal (ret.) Rilo Pambudi;
Mrs. A.Y.S.W. Djatikusumo, chairman of the Commission V of the
House of Representatives Achmadi and secretary-general of the
Ministry of Defense and Security Let. Gen. (ret.) Sugeng
Subroto.

Existing cellular operators found on the list were Telkomsel,
Telekomindo and PT Satelindo.

The applicants will first undergo prequalifications before
participating in open tenders.

Telecommunications analysts believe that the government will
launch the tenders later this year to pick up several PCN
operators.

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

The new generation of digital mobile cellular
telecommunications includes the Personal Communications System
(PCS-1900) and the Digital Cordless System (DCS-1800) from
Europe, the Personal Handy-phone Service (PHS) developed by
Japan, and Code Division Multiple Access technology from the
United States.

The country currently uses three different cellular mobile
telecommunications systems provided by seven different operators
serving some 300,000 users.

The three systems include the Global System for Mobile
Telecommunications (GSM), the Advanced Mobile Phone Service
(AMPS), and the Nordic Mobile Telephone.

PCN includes the Code Division Multiple Access system, which
is derived from the AMPS, while DCS-1800 and PCS-1900 are from
GSM.

The PHS and DCS-1800 are the systems most likely to be adopted
by the government in the personal network system.

Based on the country's telecommunications law, any PCN
providers will be required to work with the state-owned
telecommunications operators, just like the seven existing
cellular providers. As PCN is categorized as a basic domestic
telecommunications service, such a service must be run jointly by
PT Telkom. (icn)