Surabaya cellular operator to start up next month

SURABAYA (JP): Cellular operator PT Natrindo Telepon Seluler will commence operation of its DCS-1800 global system for mobile communication services in East Java next month.

Natrindo, which trades as Lippo Telecom, will be the first operator to implement the high-capacity GSM system from seven companies granted licenses two years ago.

The seven regional operators are Astratel for Sumatra, AW in West Java, Inti in Jakarta, Mitra in Central Java, Natrindo in East Java, Primarindo in Kalimantan, and Kodel in Bali and Sulawesi.

Lippo Telecom president and CEO, Michael Chow, said on Tuesday that the company would target customers in Surabaya, Malang, Sidoarjo, Gresik, Pasuruan and Probolinggo, all of which he considered potential market centers.

He said that during the first phase the company would focus on covering the Surabaya-Malang service, and has already set up about 25 base transceiver stations (BTS) between the two largest cities in East Java.

"We have the ultimate aim of providing services to 95 percent of the East Java population as soon as possible," Chow said.

East Java has a total population of about 35 million people, of which only 1.5 percent can access mobile services, he added.

Mobile systems vendor Ericsson was appointed to set up the network, and Ericsson's president for Indonesia, Mats Olson, said that it has invested about $16 million for network infrastructure such as BTS, a mobile switching center and base station controller.

Chow said that he expected to attract at least 150,000 customers in the first year, with the majority expected to use Lippo Telecom's pre-paid services.

The company will compete with existing national operators that would soon convert to DCS-1800 from the current GSM-900 service, as well as with new cellular companies such as state-owned PT Telkom and PT Indosat which would soon enter the market.

Existing GSM operators are PT Telkomsel with its Kartu Halo post-paid subscriber identity module (SIM) card and Simpati prepaid card, PT Satelindo with its Satelindo GSM post-paid card and Mentari pre-paid card, and PT Excelcomindo Pratama with its proXL post-paid and pre-paid cards.

Lippo Telecom is a subsidiary of Across Asia Multimedia (AAM), which is listed on the GEM stock exchange in Hong Kong.

AAM has an extensive range of businesses in Indonesia including Lipposhop, Lippo Star, Kabelvision, and Multipolar Corporation. (nur/tnt)