RI, RP, Thai firms will set up satellite operator

RI, RP, Thai firms will set up satellite operator

JAKARTA (JP): Three telecommunications companies from
Indonesia, Thailand and the Philippines agreed yesterday to
establish a mobile satellite telecommunication operator.

The agreement was signed by three top executives of the
participating parties -- Adi Rahman Adiwoso from Pasific Satelit
Nusantara of Indonesia, Cesar G. Reyes from Philippines Long
Distance Telephone Co. of the Philippines and Adisai Bodharamik
from Jasmine International Public Co. Ltd. of Thailand.

The new company, called Asia Cellular Satellite System, is
equally owned by the three parties.

Adiwoso said that the new company, capitalized at US$150
million, will operate satellite telecommunications which will use
four geo-stationary satellites to be called Garuda.

"I hope other ASEAN countries would join the venture," he
said. In addition to Indonesia, Thailand and the Philippines, the
Association of Southeast Asian Nations also groups Singapore,
Malaysia and Brunei.

A feasibility study of the US$900-million project has been
completed by PT Pasific Satelit Nusantara in cooperation with
Singapore Technologies Ventures, Singapore Telecommunications
Ltd. and Hughes Communications Inc.

The project, covering the most important region in Asia, will
allow any person with a handheld device to directly communicate
with another person carrying a similar device within the
satellite coverage and, through ground station gateways and
normal public switch telephone networks, to any person with a
cellular or normal fixed telephone anywhere in the world.

"The first satellite will be launched in 1997. We have
currently two bidders for the manufacture of the satellites,
comprising of Hughes Aircraft Co. and Martin Marietta of the
United States," he said.

He said that two million people are expected to subscribe to
the business.

He also said the business will likely break even with about
one million subscribers.(icn)