Indonesian Political, Business & Finance News

Telkom to prepare multimedia services

Telkom to prepare multimedia services

JAKARTA (JP): Relying on its digital and fiber-optic networks, state-owned domestic telecommunications operator PT Telkom plans to develop multimedia services in cooperation with private firms.

Telkom's president, Setyanto P. Santosa, said yesterday that his company had agreed with PT Telekomindo Primabhakti and PT Rajawali Citra Televisi (RCTI) to develop the services.

"Telkom has well-prepared infrastructure potential for voice, visual and image telecommunications. Through partnership, we will enter multimedia services," Setyanto said, adding that multimedia would be a promising business in the future.

Telekomindo is a private cellular telecommunications operator. Telekomindo, 10-percent owned by Telkom, is controlled by the Rajawali Group, which has ties with both businessman Peter Sondakh and the Bimantara Group, which owns the RCTI television station.

Setyanto said yesterday that the agreement for the development of multimedia services was just a preliminary arrangement.

In a related development, Telekomindo's vice president, Peter Djatmiko, said yesterday that his company will launch global system for mobile (GSM) cellular telephone services in Jakarta and Surabaya, East Java, in June next year.

"We plan some 100,000 lines in Jakarta and 50,000 lines in Surabaya," he said.

In August, Telekomindo was granted a permit to become Indonesia's third GSM operator. The two other GSM operators are PT Satelindo, which is owned by Bimantara, DeTeMobil of Germany, Telkom and PT Indosat; and PT Telkomsel, which is owned by Telkom and Indosat.

Peter said that Telekomindo has set up a new company called PT Excelcomindo to run the GSM business in cooperation with Nynex of the United States, Mitsui of Japan, the Asian Infrastructure Fund and several local partners, including Santana Telekomindo, the Armed Force's Kartika Eka Paksi Foundation and the Tridaya Foundation.

He said that the share ownership is still being discussed among the parties.

"We plan to operate in the capitals of each of the country's 27 provinces within the next five years. We expect to list some 100,000 subscribers by 1997," he said.

There are currently about 200,000 cellular telephone subscribers in Indonesia. (icn)

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