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)