RI could have 2.4 million cellular phone lines in 1999

By I. Christianto

SINGAPORE (JP): There could be 2.4 million cellular telephone lines in Indonesia at the end of the country's sixth five-year development plan in March, 1999, said a senior official.

This is about 80 percent more than five-year period's target of 1.3 million lines.

Indonesia's Ministry of Tourism, Post and Telecommunications Secretary-general Jonathan L. Parapak said here yesterday that the higher than estimated growth in the cellular telephone market was in line with the rapid growth in cellular telephone services throughout the world.

"At the end of the five-year development plan, cellular lines in Indonesia may account for between 30 percent or even 40 percent of the total eight million telephone lines (both fixed and cellular) expected to be installed by 1999," he said on the sidelines of the Asia Telecom 1997 conference.

Jonathan was also in Singapore to promote Asia-Pacific Telecom 97, to be held in Jakarta from Nov. 29 to Dec.3.

The government said late last year it would install 6.7 million fixed-telephones lines and 1.3 million mobile telephone lines during the on-going Sixth Five-Year Development Plan, to end March, 1999.

Parapak said there could be 2.4 million cellular lines alone at the end of the five-year development plan, far more than the targeted 1.3 million lines.

Indonesia has seven operators running three different cellular telephone systems. PT Telesera, PT Metrosel and PT Komselindo run the advanced mobile phone system (AMPS); PT Mobisel runs the Nordic mobile telephones (NMT) system; and PT Satelindo, PT Telkomsel and PT Excelcomindo run the Global System for Mobile Communications (GSM).

Since the cellular system was introduced in the early 1980's, the number of cellular mobile telephone subscribers has increased rapidly, especially after the government eliminated import duty on handheld models in 1995.

Now, there are some 670,000 cellular users in Indonesia. The number will likely triple in the near future as the government has invited private firms to run new cellular systems.

The government opened Monday the tender of 11 new cellular licenses to operate the Personal Communication Network (PCN), which includes the Digital Cordless System (DCS-1800), and the Personal Handy-phone Service (PHS).

Five other PCN licenses have been awarded to five firms, including PT Cellnet, PT Primasel and the consortium of the state-owned PT Telkom, PT Indosat and PT Inti.

In its report Monday, ITU said cellular was one of the fastest growing telecommunications market segments in the Asia-Pacific region.

The number of cellular users increased 84 percent in the region in 1996, compared to a 14-percent increase in main lines and an 11-percent increase in international telephone calls, according to the report.

The Union said the converting of revenue sharing arrangements of cellular operators into joint ventures with Telkom had caused the significant increase.

ITU estimated that there would be up to five million cellular users in Indonesia by 2000, while cellular density (the ratio of a cellular user per 100 inhabitants) would be 2.36 in 2000, much more than 0.28 recorded in 1996.