PSN to build rural telecoms networks

PSN to build rural telecoms networks

JAKARTA (JP): Publicly listed PT Pasifik Satelit Nusantara
(PSN) is to develop telecommunications networks in West Java
using its satellite services in cooperation with PT
Telekomunikasi Nusantara Prima (Telnus) and PT Ariawest
International.

Under an agreement signed here yesterday, PSN and its partners
will develop telecommunications facilities in 500 rural areas in
the province.

Based on a joint-operation contract, PT Ariawest will be
responsible for installing 500,000 lines in the province by March
1999. Ariawest is also required to operate them along with
existing lines until 2010.

Yesterday's agreement was signed by PSN's president, Adi
Rahman Adiwoso, Ariawest's vice president, Gatot Kahrmadji,
Telkom's West Java regional division general manager, Adek
Julianwar, and Telnus's president, Gunoto Abdul Latief.

Adiwoso said the 500 rural areas, which include about 50
percent of total villages in Telkom's West Java regional
division, are part of the first phase, which is scheduled to
begin in August and completed by March 1999.

"Each village will have at least one telephone line using Very
Small Aperture Terminal Xpress Connection of PSN," he said.

Xpress Connection is a satellite-based wireless
telecommunications facility operated by PSN.

"The rural telecommunications facilities will be public
telephones or telecommunications kiosks operated by Telkom, PSN
and Telnus in cooperation with Village Cooperatives Units or
other local institutions under revenue sharing schemes," Adiwoso
said.

Adek Julianwar said the program was part of the effort to
accelerate telecommunications development in West Java while
satellite technology would facilitate the development in remote
areas difficult to reach with wire lines.

The program will also accelerate the Universal Service
Obligation required by the government, Kahrmadji said.

PSN, which is listed on the Nasdaq Capital Market in the U.S.,
is a joint venture between overseas and domestic firms, including
Telkom, PT Elektrindo Nusantara (a Bimantara Group subsidiary),
PT Primaupaya Lintaswara, Hughes Space and Communications Inc. of
the U.S. and Telesat Canada.

In addition to an inclined satellite previously owned by
Telkom, PSN also provides satellite-based communication services
within the Asia-Pacific region using 12 transponders of the
Palapa-C satellites.

Telnus is a joint venture owned by Telkom, the state-owned PT
Indosat and PT Pos Indonesia, a cooperative of the Ministry of
Tourism, Post and Telecommunications. (icn)