Only consortia allowed to run cellular telephones

Only consortia allowed to run cellular telephones

JAKARTA (JP): The government will license only consortia
comprising of several corporations rather than single companies
to provide the new generation of digital mobile cellular
telecommunications in Indonesia.

Minister of Tourism, Post and Telecommunications Joop Ave told
a press conference here yesterday that both new players and the
existing private telecommunications operators will have the same
opportunities in the tenders for cellular telecommunications,
which he guaranteed will be held transparently.

"There are already 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 about the correct number of the bidders as I
have not received any reports from my staff," he said.

Several media reported last week that there have been at least
120 companies already submitting applications for the
government's licenses to provide the new generation of the
digital mobile cellular telecommunications called Personal
Communication Network (PCN) and the Personal Handy-phone Service
(PHS) services in the country.

"In Japan, the country which develops PHS, there are currently
three operating providers of the system. Each of them comprises
of about 20 or 30 parties. In South Korea a PHS operator even
comprises of 80 parties," Joop said.

Businessmen and telecommunications executives expect the
government to open the tenders for such businesses later this
year. But Joop said that the tenders will be held next year as
there were still several matters to be discussed.

He also indicated yesterday that the PHS and the Digital
Cordless System (DCS-1800), the upgraded system of the Global
System for Mobile communications which is developed in Europe,
are the systems most likely to be adopted by the government in
the personal telecommunications network system.

"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, a
foster brother of President Soeharto, and Siti Hutami Endang
Adiningsih Soeharto, one of the President's daughters. Inti is a
state-owned telecommunications equipment manufacturer 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 were handled in cooperation with
state-owned domestic telecommunications provider PT Telkom and
will last by the end of this year.

Secretary-general of the Ministry of Tourism, Post and
Telecommunications Jonathan L. Parapak said that based on the
country's telecommunications law, any PCN/PHS providers will 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 the next generation of the digital wireless telephone
system that uses light, inexpensive handsets with long-life
batteries to communicate via low-powered antenna. The system work
in the frequency at between 1.8 gigahertz and 1.9 Ghz.

In addition to DCS-1800 and PHS, there are other systems,
including the Personal Communications System (PCS-1.900) and the
Code Division Multiple Access technology from the United States.
(icn)