Telkom to launch new satellite by end of 2004
Tony Hotland, The Jakarta Post/Jakarta
PT Telekomunikasi Indonesia (Telkom) plans to launch a new satellite with broader coverage in December to capitalize on the increasing use of satellites in Asia.
The new satellite, to be known as Telkom-2, will replace Telkom's Palapa B4 satellite. It has a total of 24 transponders and a useful life of 15 years.
"The total investment is around US$170 million, and has been taken from our internal reserves. Unlike the Palapa B4 satellite, whose footprint only covers the Southeast Asia region, the Telkom-2 footprint goes all the way to India and China," Telkom president Kristiono said on Thursday in Cibinong, West Java, after a ceremony to mark the anniversary of the launching of Telkom's first satellite, Palapa A1, 28 years ago.
Telkom-2 will be launched into orbit by European commercial launch service provider Arianespace from Guyana, South America, and will be in full operation by February 2005.
Besides running Palapa B4 with 24 transponders, Telkom also operates Telkom-1, which was launched in 1999 and has 36 transponders and a useful life of 15 years.
Forty-six transponders on both satellites are occupied by Telkom, while the rest are leased to 12 operators of very small aperture terminals (VSAT), nine national television stations, three local television stations, and foreign leaseholders such as Reuters and NHK.
"Eventually, we'll occupy less transponders as for long distance services, Telkom will gradually switch to undersea cable and fiber optic infrastructure. So, more transponders will be available for lease by foreign customers," said Kristiono.
Currently, Telkom leases out one transponder for around $1.1 million per year. However, Kristiono said that it would be difficult to maintain this price due to increasing competition among satellite service operators in the region.
Kristiono added that Telkom would still use Jasindo as the insurance provider for the new satellite, although Jasindo would likely have to form a consortium to insure an asset of such value.
At present, Telkom is the second biggest satellite provider after AsiaSat in the Southeast Asia region, with a market share of 17 percent in 2003.