RI could have 2.4 million cellular phone lines in 1999

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.