PSN to launch M2A satellites in 1999

PSN to launch M2A satellites in 1999

JAKARTA (JP): PT Pasific Satelit Nusantara (PSN)
will spend about US$340 million making two Multi-Media Asia (M2A)
satellites.

PSN's operating director, Achadiat Djajawinata, said here
yesterday the two satellites would be launched by the first
quarter of 1999, and begin operation in August 1999.

"The cost of launching the satellites alone will reach around
$72 million," he said on the sidelines of a telecommunications
seminar.

The satellites' coverage will include almost all of Asia and
Australia.

Achadiat said M2As were a suitable communications system for
Indonesia because they will be able to support its seventh five-
year development period.

The M2A satellite is a new generation satellite which will
deliver high debit transfer. It will be the first satellite-based
system to provide major telecommunications services as an adjunct
to the switched public telephone network.

The satellite, developed by U.S. firm Space System/Loral, has
a 10-year mission life.

French telecommunications giant Alcatel will participate
assembling the satellite with a contract worth $100 million.

The satellite is expected to provide telephone, data and
figure communications, television and other telecommunication
services.

PSN, a joint-venture with the firm state-owned domestic
telecommunications firm PT Telkom, has already received
applications from 20 multinational vendors to develop user
terminals -- equipped with SMART Card technology for TV reception
and SIM card technology for telephones -- which enables it to
receive and transmit all services.

Among the applicants are four foreign companies -- the
Netherlands' Phillips, France's Alcatel, Sweden's Ericsson and
U.S. firm Motorola.

PSN will set up a joint venture firm with PT Indosat and
Telkom to operate and manage the terminals.

PSN estimates about four million terminals will be sold over
10 years for $650 each.

PSN, which is listed on the U.S. Nasdaq market, expects 5,000
terminals to be operational a year after full commercial service
starts later this year.

Achadiat said break-even point would be reached when about
200,000 terminals had been sold.

PSN said the potential market was driven by the rapid
development in the TV broadcast industry, which is estimated to
have 6.1 million households by 2000 and 10.8 million households
in 2005 using the satellite service for direct to home satellite-
pay TV service. (10)