'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)