'PCSs must work with state firms'

'PCSs must work with state firms'

JAKARTA (JP): Any satellite-based personal communications
services provider planning to enter the Indonesian market will be
required to work with the state-owned telecommunications
operators, a senior official said yesterday.

"Personal communications services (PCS) are categorized as a
basic service, so that under the country's telecommunications
law, such a services must be run by state-owned companies,"
Ministry of Tourism, Post and Telecommunications Secretary-
General Jonathan L. Parapak said.

He said that the involvement of private operators in the
Indonesian telecommunications industry will be permitted only on
condition that such firms cooperate with the state-owned
companies under a joint-operation, joint-venture or management
agreement.

"The growth of PCS is very promising, as the price has dropped
significantly and there are many foreign operators are in the
Indonesian market," he said, adding: "It's quite clear that
foreign operators should cooperate with the state-owned
telecommunications firms."

There are two state-owned telecommunications firms, PT
Telekomunikasi Indonesia (Telkom) which runs the domestic
telecommunications business, and PT Indosat, which runs the
international telecommunications business.

Several overseas PCS operators have expressed interest in
entering the Indonesian market. Most of those plan to launch
services using either medium-earth or low-earth orbit satellites,
some as early as the year 2000.

Among the PCS operators which have approached Indonesian
partners are Globalstar, which has formed an alliances with
world-class telecommunications firms; Odyssey Telecommunications,
which is run by TRW of the United States and Teleglobe of Canada;
and Inmarsat P, which is being developed by International
Maritime Satellite. (icn)