Satelindo's $835m service investment
PARIS (JP): PT Satelindo, one of the country's seven mobile phone operators, has pledged to invest at least US$835 million to improve its services.
The company's director of cellular operations, Saleh Gunawan, said here yesterday about $635 million would be spent on the expansion of its global system for mobile communications (GSM) networks in Java.
The other $200 million would finance the expansion of GSM networks outside Java, he said.
France's Alcatel supplies Satelindo's networks in Java and Germany's Siemens its networks in other areas.
Saleh was here for the signing ceremony between Satelindo and its two major French partners, Paribas and Alcatel.
Satelindo which runs GSM and satellite and international telecommunications services, has secured a $135.89 million loan from French Paribas. The loan was backed by the French Export Credit Agency, COFACE.
Satelindo's managing director of finance, Hessel Fransen, said the credit agreement was signed on Feb. 13.
The signing of additional documentation was done yesterday by Satelindo's president, Iwa Sewaka, and Paribas's board of management chairman, Andre Levy-lang.
Fransen said the loan was to finance a $152 million Alcatel- supplied expansion project. "The equipment for the $152 million expansion project has been 60 percent delivered."
Iwa also signed a $225 million contract extension with Alcatel, making its orders from the French telecommunications equipment maker worth $635 million since 1993.
Alcatel will start supply equipment for the new contract in April or May.
Fransen said Satelindo had several ways to raise the money to pay for the new contract. "We may issue bonds or use other export bank credit. Another possibility is the planned initial public offering scheduled for next year."
Saleh said Satelindo would have 450,000 GSM lines just in Java by August.
"Our backbone microwave network will reach 155 megabytes offering synchronous digital hierarchy (SDH) technology," he said.
Satelindo would operate 1,000 base transceiver stations in Java, he said.
"Our investment in Java will reach up to $1 billion within the next few years," he said.
The other cellular operators in Indonesia are PT Telkomsel and PT Excelcomindo Pratama which run GSM. PT Telekomindo, PT Metrosel and PT Komselindo run the Advanced Mobile Phone System, while PT Mobisel runs the Nordic Mobile Telephone system.
Saleh said Satelindo's GSM network would cover all of Java.
He said Satelindo had signed roaming agreements with several GSM operators in 25 nations, giving its users international access.
"We will start roaming services in China and Saudi Arabia later this month," he said.
Satelindo has 210,000 GSM users and relies on its microwave network, the Palapa-C transponder satellite, submarine cables and fiber optic backbones.
Saleh said the GSM service contributed Rp 360 billion or 60 percent of Satelindo's total revenue last year. "This year revenue from cellular operations is estimated to reach Rp 700 billion," he said. (icn)