Telkom, Motorola to build fixed phone

Telkom, Motorola to build fixed phone

JAKARTA: State-owned telecommunications company PT
Telekomunikasi Indonesia (Telkom) said Thursday it has signed an
agreement with Motorola Inc. to build 225,000 fixed wireless
telephones in Sumatra Province until approximately mid-2006.

Each fixed wireless telephone will cost US$116 to produce and
install, Telkom said in a statement.

Under the agreement, the U.S. company will design, develop and
build the fixed wireless telephone network, which will use the
code division multiple access, or CDMA 2001-X, system. Telkom
will operate the network.

Unlike a cellular phone, which uses satellites to transmit its
calls, a fixed wireless telephone uses a base station and has a
limited range. An advantage of fixed wireless is the ability to
connect users in remote areas without the need for laying new
cables.

Telkom operates more than 7.5 million fixed lines across
Indonesia. The government has 52 percent stake in Telkom, while
the rest is owned by the public. -- Dow Jones