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