Satelindo reforms billing system

Satelindo reforms billing system

JAKARTA (JP): Private telecommunications operator PT Satelindo
signed agreements yesterday with nine banks to support its
billing services for subscribers to its global system for mobile
(GSM) cellular communication network.

The agreements were signed by Satelindo president Iwa Sewaka
and the top executives of nine domestic banks: Bank Ekspor Impor
Indonesia, Bank Dagang Negara, Bank Artha Graha, Bank Dagang
Bali, Modern Bank, Lippo Bank, Bank Internasional Indonesia, Bank
Central Asia and Bank Danamon.

Under the accords, the banks will directly deduct the monthly
fees due to Satelindo from its GSM subscribers' accounts.

The banks will withdraw the charges five days prior to the
last date for payment and then channel the collected funds to
Satelindo's account after deducting a collection fee.

Iwa said that Satelindo, which provides GSM services in seven
major cities in Indonesia, had so far listed 82,000 subscribers.
"The number will likely reach 100,000 by the end of this year,"
he said.

Satelindo is 45 percent owned by PT Bimagraha Telekomindo,
22.5 percent by PT Telkom, 7.5 percent by PT Indosat and 25
percent by DeTeMobil of Germany. Satelindo raised US$586 million
in March from the sale of the 25-percent stake to DeTeMobil.

"We expect to gain a profit of between Rp 50 billion and Rp 75
billion next year," Iwa said.

Satelindo, which was established in 1993, operates both GSM
and international telecommunications services. The company will
also operate the country's Palapa-C1 satellite, which will be
launched next month.

The company decided to seek a loan after canceling a plan to
issue debt instruments to generate additional funds to finance
its expansion projects.

Iwa said that his company will receive a loan of $230 million
from Bank Ekspor Import Indonesia. The Export Import Bank of the
United States has already extended a $100 million loan to
Satelindo for the launching of Palapa-C1.

"Our annual revenues from international call services this
year may reach Rp 60 billion and from GSM services Rp 120
billion," he said. "We also expect to raise revenues of $56
million per annum from leasing Palapa-C1's transponders."

Palapa-C1 has 34 transponders, each of which is leased at
between $1.5 million and $3 million per year. (icn)