PT Telselindo to operate CDMA technology in 2002
PT Telselindo to operate CDMA technology in 2002
JAKARTA (JP): Local cellular phone operator PT Telselindo
Nusantara and its British partner Inquam Limited announced on
Friday plans to develop a US$300 million cellular phone network
in the country, based on Code Division Multiple Access (CDMA)
technology.
Telselindo's chief commissioner Purnardi Djojosudirjo said
both companies had signed an agreement last month to develop the
CDMA cellular phone network.
In the beginning, he said, the joint venture will build a
network in Java, Bali and Lampung.
The network will be later expanded to Sulawesi, the rest of
Sumatra and other areas in the eastern part of Indonesia.
"If the development plan runs as scheduled, we shall be on air
early next year," Purnardi told a news conference.
He acknowledged that the joint venture's development plan had
yet to receive the go-ahead from the government.
Inquam is jointly owned by Saudi Arabia-based investment group
Omnnia and United States telecommunications firm Qualcomm Inc.
According to a statement issued by Telselindo and Inquam,
Qualcomm is a patent holder of CDMA 450 technology. The other
patent holder is Lucent Technologies, also of the U.S.
Purnardi said Telselindo and Inquam would use Qualcomm's CDMA
450 technology in the country.
CDMA is one of two digital cellular technologies most widely
used today, the other being the Global System for Mobile
Communications (GSM). GSM is, however, more popular among
Indonesian operators, including PT Telkomsel, PT Satelindo and PT
Excelcomindo Pratama.
Other technologies based on the analog system include NMT and
the Advanced Mobile Phone System (AMPS). AMPS is used by
Telesera, Metrosel and Komselindo.
Last month, another cellular operator, PT Mobile Selular
Indonesia (Mobisel), announced that it would invest $200 million
to replace its current analog Nordic Mobile Telephone (NMT)
technology with CDMA.
Purnardi voiced optimism that the joint venture of Telselindo
and Inquam would able to compete with Mobisel, citing the
reliability of the CDMA technology owned by Qualcomm.
"Competition is common in business. But we are optimistic that
we can obtain a greater share from the prospective business," he
said.
Telselindo's operational director Muslim Mahmud said the joint
venture expected to secure around 50,000 subscribers in its "soft
launching" period.
"We target to net around two million subscribers in total," he
added.
Muslim said the company targeted people living in rural areas
rather than those in urban areas.
"CDMA technology, with its low frequency of 450 megahertz, can
cover a wider area than the higher frequencies applied by other
operators such as GSM," he explained.
Inquam's chairman and chief executive officer Chris J.
Bataillard said the CDMA technology still lacked appreciation in
the country, but, he said, the prospect for the technology was
very bright given the fact that most of the population lived in
rural areas.
He said he was optimistic the company would reach breakeven
after two years of operation. (03)