Only consortia allowed to provide cellular telephones
JAKARTA (JP): The government assured yesterday that the contracts for the latest generation of digital mobile cellular telecommunication networks would be awarded through a competitive bidding.
Minister of Tourism, Post and Telecommunications Joop Ave told a press conference that new players and existing private telecommunications providers would have an equal chance to win the tender for cellular telecommunications.
But only consortia of companies would be awarded contracts to provide the Personal Communication Network (PCN) and the Personal Handy-phone Service (PCS) networks, Joop added.
"There have already been 92 applications sent to my office and it's true that some of the bidders are backed by 'high-level' names."
"This morning I found two more proposals on my table, but I don't have any idea on the correct number of bidders as I have not yet received complete reports from my staff," he said.
At least 120 companies had submitted applications for government licenses to provide the latest generation of digital mobile cellular telecommunications, called the Personal Communication Network (PCN) and the Personal Handy-phone Service (PHS).
"In Japan, the country which developed PHS, there are currently three providers of the system. Each of them comprises about 20 or 30 parties. In South Korea a PHS operator even comprises 80 parties," Joop said.
Businessmen and telecommunications executives expect the government to open the tenders for providers later this year. But Joop said the tenders would be held next year because there were still some matters to be discussed.
Joop said the winners of the tender were expected to join one of the two consortia which have been licensed to operate PHS and PCN pilot projects.
"The government has licensed PT Celnet Nusantara and the Association of Retired Military Officers (Pepabri) to conduct a DCS-1800 pilot project in Jakarta, and PT Inti and the Foundation of Military Headquarters (Yamabri) to conduct a PHS pilot project in Surabaya, East Java," he said.
PT Celnet is a private firm owned by tycoon Sudwikatmono, who is a foster brother of President Soeharto, and Siti Hutami Endang Adiningsih Soeharto, one of the President's daughters. PT Inti is a state-owned telecommunications equipment manufacturer which is supervised by the Agency for the Management of Strategic Industries, which is chaired by State Minister of Research and Technology B.J. Habibie.
Joop said the pilot projects will be implemented in cooperation with the state-owned domestic telecommunications provider PT Telkom, and will be completed by the end of this year.
He also said the PHS and the Digital Cordless System (DCS- 1800), an upgraded global system for mobile communications, developed in Europe, are the systems most likely to be adopted for the new personal telecommunications networks.
Secretary-general of the Ministry of Tourism, Post and Telecommunications Jonathan L. Parapak said that according to the country's telecommunications law, PCN/PHS providers would be required to work with Telkom because the systems are categorized as basic domestic telecommunications services which must be run jointly with a state-owned firm.
PCN is a digital remote telephone system that uses light, inexpensive handsets with long-life batteries to communicate via low-powered antennas. The system's frequency is between 1.8 gigahertz and 1.9 Ghz.
Meanwhile, Joop announced that the period for the 75 percent discount phone calls will be changed to between 23:00 and 08:00 hours as from next month from 21:00-06:00 hours at present.(icn)
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