Telecom firms to invest Rp 15 trillion this year

The Jakarta Post, Jakarta

Telecommunication companies are expected to invest about Rp 15 trillion (US$1.77 billion) in the country this year, mostly for the development of mobile telephone networks, a telecommunication association said on Wednesday.

About 70 to 80 percent of the estimated investment will be channeled toward cellular development, Indonesian Telecommunications Association (Apnatel) chairman Damsiruddin Siregar was quoted by Antara as saying on the sidelines of a seminar here.

"Telecommunication operators appear to be prioritizing the development of cellular services, although expansion of fixed line services is needed," Siregar said.

About Rp 12 trillion will be spent on cellular networks, while the remaining Rp 3 trillion will go toward the development of the fixed line and wireless access sectors.

Many foreign and local companies are eager to invest in the country's cellular sector, given the huge potential of the local market.

The number of cellular phone subscribers across the country is estimated to reach 18 million by the end of 2003, more than a 50 percent increase from 11.4 million in 2002, according to the Association of Indonesian Cellular Operators (ATSI).

However, the number of cellular phone subscribers account for a mere 8 percent of the nation's 215 million-strong population.