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Satelindo shifts its orbit from satellites to services

Satelindo shifts its orbit from satellites to services

For many mobile phone users, PT Satelit Palapa Indonesia
(Satelindo) is perhaps most known as a provider of the Global
System for Mobile Communication (GSM) cellular service.

But only a few may realize that Satelindo is among the major
commercial satellite operators in the Asia Pacific -- a supplier of
transponders and other satellite-linked telecommunication services
to its many users in the region.

Satelindo owns and operates the Palapa C1 and the Palapa C2
satellites, the offspring of the Palapa A satellite system.

The two satellites are now being utilized by a wide range of
local, regional and international broadcasters, telecommunications
companies, news services and entertainment networks.

Positioned at 113 degrees east, Palapa-C2 utilization has
already reached 78.6 percent; Palapa-C1 has attained 25 percent
usage.

Satelindo's General Manager for Satellite Operations and
Marketing, Kanaka Hidayat, says 60 percent of the company's
satellite service is used for broadcasting and the remainder for
telecommunications.

This shows in the list of the company's customers, which
include the six domestic TV stations -- state-owned TVRI, RCTI,
SCTV, TPI, Indosiar and ANteve.

Major international broadcasters such as CNN, ESPN and HBO
are also among users of its Palapa-C generation satellites.

Satelindo's path to the satellite business began in 1993, when
state-owned PT Telkom handed over its satellite operation to the
company.

This left it with the task of cultivating the seeds of
commercial satellite development which started in the country more
than 20 years ago.

The Palapa A, the first of the satellite's generation, was
launched in 1976.

Today, Palapa has the largest established dish population in
Southeast Asia. All major cable networks in the region point to
Palapa and distribute channels from it.

In January 1996, Satelindo launched its first satellite, the
Palapa-C1, which marked the first private sector investment in
Indonesia's satellite communications history.

Four months later, the company launched the Palapa C2.
The two satellites enable Satelindo to cover the entire Asia
Pacific region.

Satelindo also assisted the satellite launching of other
operators.

In August the same year, Satelindo assisted Chinasat of China
in launching its satellite, and three months later Satelindo
supported the launching of Malaysia's Measat II satellite.

Today, Satelindo supports the recovery mission of Asiasat 3
satellite using a unique technique of orbiting around the moon, a
first in the world.

Each of the Palapa satellites has 34 transponders with
coverage extended westwards from Iran to Vladivostok and southwards
as far as Sydney and New Zealand.

The C-Band transponders can be unlinked and downlinked either
on Asia or the Association of Southeast Asian Nations (ASEAN) beam.

About 2.6 million dishes are now pointing to Palapa-C2 in
Indonesia alone.

The company recorded a remarkable Rp 86.8 billion in sales in
1996, up from Rp 2.9 billion in the previous year.

Services

Satelindo's satellite division offers a wide range of
services.

This includes a full or partial transponder capacity for both
analog or digital carriers.

But Kanaka says the company is shifting its operation from
merely leasing transponders to providing more broadcasting-related
services.

Using the latest digital video compression technology,
Satelindo offers a studio quality video contribution service for
occasional use.

With its international partners, the company also supplies
global distribution of TV programs for international broadcasters.

For its occasional services, it leases its OB Van as well.
This service was utilized during last year's Southeast Asian Games
in Jakarta.

Satelindo also offers international network services within
the entire Palapa footprint. This service uses the VSAT
technology, which is capable of voice data and video transmission
spanning great distances around the globe.

Satelindo provides Internet service, which is connected via
satellite into the Palapa coverage areas.

As one of the pioneers in satellite operations in Asia,
Satelindo has ground station services for primary launch and back-
up support for satellites in the eastern hemisphere.

The company also offers teleport services from various
originating satellites to Palapa C.

More services will follow as Satelindo continues to develop
its satellite service.

It plans to enter into the Direct-to-Home services business
by providing the whole service chain to a licensed customer. This
includes nationwide retail and support network and nationwide
salesforce to hotels and apartments.

Other new services will be a digital platform and program
bouquet with initially six to eight niche channels on Palapa C2.

Kanaka says Satelindo will face tougher competition ahead.

Most countries in the region, such as Malaysia, Thailand,
China, Hong Kong, Laos, the Philippines and Indonesia, are
launching their own satellites.

"The satellite business is regarded now almost like the pride
of a country," Kanaka says.

These newly launched satellites are targeted for the domestic
market only, due to a very restrictive regulatory situation.

But Kanaka says he is still convinced that Palapa will remain
one of the most popular satellites for the entire region.

Palapa will stay the first choice to target the population of
the fourth largest country, due to the Indonesian free-to-air
channels and the large existing dish population, he says.

This means the company has an unbeatable advantage to provide
broadcasting related services for the entire region, in addition to
Indonesia.

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