Fri, 29 Aug 1997

Telkom sets up 2 new cellular operators

JAKARTA (JP): PT Telekomunikasi Indonesia (PT Telkom) has set up two new joint venture companies with private firms to operate the Digital Cordless System (DCS-1800) nationwide.

The company said here yesterday the new companies were PT Selnet Nasional Indonesia (Selnas) and PT Indomedia Telephone Cellular National (Indophone).

Selnas is 10 percent owned by Telkom and 90 percent owned by PT Cellnet Nusantara, a private firm controlled by businessman Sudwikatmono, one of President Soeharto's close relatives and Siti Hutami Endang Adiningsih, the President's youngest daughter.

Telkom has 35 percent shares in Indophone which is 65 percent controlled by PT Nusantara Ampera Bakti (Nusamba). Nusamba's shareholders include timber tycoon Bob Hasan, who is also the company's president commissioner; businessman Sigit Hardjojudanto, Soeharto's eldest son; and the Supersemar, Dakap and Dharmais foundations, chaired by Soeharto.

Telkom said yesterday that with PT Prima Tangara Citra and Bank BNI's Swadharma Cooperative, it had also set up PT Tangara Mitrakom which will provide very small aperture terminal (VSAT) services. The new company is 25 percent owned by Telkom.

Sources said Selnas was incorporated with an authorized capital of Rp 200 billion, while Indophone and Tangara had an authorized capital of Rp 20 billion and Rp 4 billion, respectively.

It is not yet known when the new companies will start operations.

Licenses

The government awarded in June five licenses -- without any tender -- to several companies to run the DCS-1800 and Personal Handyphone Service (PHS), two digital cellular telecommunications systems. The DCS-1800 was developed from the Global System for Mobile communications (GSM) originally from Europe, while PHS was developed by Japan.

Two of the five licenses go to Telkom and Cellnet which are allowed to operate the DCS-1800 system nationwide.

One of the licenses was presented to PT Indoprima Mikroselindo (Primasel), partly owned by state-owned PT Indosat and PT Inti, to run PHS only in East Java.

Two other free-of-bid licenses go to a consortium of Telkom, Indosat and Inti to operate DCS-1800 in the greater Jakarta area only and PHS only in East Java. The consortium of three state- owned firms is allowed to invite private firms to cooperate.

The government is still evaluating tender participants for 11 regional cellular licenses. The licenses include six regional licenses to operate DCS-1800 in Sumatra, West Java, Central Java, East Java, Kalimantan and the eastern areas and five regional licenses to operate PHS in Sumatra, West Java, Central Java, Kalimantan and the eastern islands.

In the next few years, at least five cellular systems will be adopted in Indonesia. Three existing systems are currently run by seven operators. The three existing systems are the global system for mobile communications (GSM), the advanced mobile phone service (AMPS) and the Nordic mobile telephone (NMT).

GSM is run by three operators PT Telkomsel, PT Satelindo and PT Excelcomindo of PT Telekomindo Primabhakti; AMPS is also run by three firms PT Komselindo, PT Metrosel and PT Telesera of Telekomindo. PT Mobisel is the operator of NMT.

As regulated by the country's telecommunications law, any basic telecommunications service operations have to involve state-owned providers. Hence, Telkom has stakes in each of the existing cellular operators.

Telkom has 42.72 percent shares in Telkomsel, 22.5 percent in Satelindo, 20.17 percent in Metrosel, 35 percent in Komselindo, 25 percent in Mobisel and 10 percent in Telekomindo. (icn)