Telkom eyes cell phone services
Telkom eyes cell phone services
BANDUNG (JP): State telecommunications company PT Telkom is
considering a plan to enter the mobile telecommunications sector,
vice president and coordinator for new business development at
the state firm Garuda Sugardo announced on Friday.
Garuda said entering the cellular business would boost the
company's image and corporate value.
He said Telkom, which currently owns a majority stake in the
country's cellular telephone operators, was currently assessing
the feasibility of directly running a cellular telephone
business.
"If it is feasible, I will recommend Telkom enter the cellular
business in Jakarta and Surabaya," he said, adding that the
results of the study were expected in the near future.
He projected that Telkom would need to spend at least US$400
million to establish one base transceiver station to support
cellular services using the global system for mobile (GSM)
telecommunications system.
He said Telkom should not establish a new subsidiary to run
the cellular business, but instead put the new division directly
under its command. He added that the state telecommunications
monopoly currently had too many subsidiaries.
Telkom holds a 25 percent stake in PT Mobisel, 35 percent in
PT Komselindo and 20.1 percent in PT Metrosel, 42.7 percent in PT
Telkomsel, 22.5 percent in PT Satelindo. Telkom also has an
interest in PT Excelcomindo through its subsidiary PT
Telekomindo, which controls 60 percent of Excelcomindo.
Telkom also set up in 1997 two joint ventures: PT Selnet
Nasional Indonesia (Selnas) and PT Indomedia Telephone Cellular
National (Indophone). The two companies have received licenses to
enter the cellular telephone service market, but have yet to
realize their plan.
Selnas is 10 percent owned by Telkom and 90 percent owned by
PT Cellnet Nusantara, a private firm controlled by businessman
Sudwikatmono -- one of former president Soeharto's close
relatives -- and his youngest daughter Siti Hutami Endang
Adiningsih.
Telkom has a 35 percent share in Indophone, which is 65
percent controlled by PT Nusantara Ampera Bakti (Nusamba).
Nusamba's shareholders include timber tycoon Mohamad "Bob" Hasan,
who is also the company's president commissioner.
The two companies, along with at least nine other companies,
have received licenses to run cellular telephone services under
the Digital Cordless System (DCS-1800) system.
None of the companies, however, have started their operations.
Telkom announced on Friday that it had increased its stake in
its subsidiary PT Infomedia Nusantara to 51 percent, worth Rp
12.75 billion.
Telkom previously controlled only 35.8 percent of the stake in
Infomedia, the publisher of telephone directory books. (43/cst)