PT Telkom invites private firms to set up multimedia business

JAKARTA (JP): The state-owned domestic telecommunications carrier PT Telkom is inviting private firms to set up a company to offer multimedia services.

Several private firms including some from the Bimantara and Rajawali groups have expressed interest in the venture.

Telkom's president Asman Akhir Nasution, Bimantara Group's Bambang Trihatmodjo, Rajawali Group's Peter Sondakh and Rali Siregar of the private TV station Rajawali Citra Televisi Indonesia (RCTI) met at Telkom's Jakarta office yesterday to discuss the multimedia services plan.

Informed sources said the top executives exchanged views on the planned multimedia business which will include video on demand, news on demand and other services planned to be applied in Jakarta.

None of the executives were willing to comment on the meeting and reporters were not even allowed to enter the meeting room's lobby.

Last year, Telkom signed a preliminary deal with cellular telephone operator PT Telekomindo Primabhakti of the Rajawali Group and RCTI to develop multimedia services.

Telkom has well-prepared infrastructure potential for voice and visual image telecommunications. Its infrastructure includes the Integrated Services Digital Network (ISDN) and Intelligent Network (IN) facilities, which are already being used in big cities.

Apart from existing services, Telkom plans to replace conventional cable networks with optical fiber cables.

Cooperation and alliances with private firms are a must for Telkom because multimedia services are a convergence of various businesses.

Nasution said yesterday in Cipanas, West Java, that Telkom would be left behind if the company did not offer multimedia services.

"However, we have not planned any joint multimedia company. The process will take a long time," he said.

Sources said with its planned steps into multimedia services, Telkom has showed it wants to follow the foot steps of PT Indosat, the state-owned international telecommunications provider. Indosat which earlier this year acquired production house PT YTC, has set up a new company called PT Indosat Mega Media which will handle its multimedia business. (icn)