Telecom firms to invest Rp 15 trillion this year

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.