Only consortia allowed to provide cellular telephones

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)

Cellular terminals -- Page 8