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Telkomsel considers using Palapa satellite transponder

| Source: JP

Telkomsel considers using Palapa satellite transponder

JAKARTA (JP): PT Telkomsel, a digital mobile cellular
telecommunications operator, plans to use a satellite transponder
to facilitate its network and operations in the country's eastern
region.

Telkomsel's director for operations, Garuda Sugardo, said that
his company is currently conducting a feasibility study for the
utilization of Palapa satellite transponder.

Telkomsel -- owned by the state-owned PT Telkom and PT
Indosat, Dutch PTT Telecom Netherlands and the Setdco group --
operates the Global System for Mobile Communications (GSM)
telecommunications.

"The feasibility study, conducted in cooperation with the
state-owned telecommunications equipment manufacturer PT Inti,
will be completed by the end of this year," he said.

He refused, however, to disclose from which company Telkomsel
would lease the satellite transponder.

Indonesia currently operates three Palapa satellites: the
Palapa-B2R, Palapa-B4 and Palapa-C1.

The Palapa-B2R and Palapa-B4 satellites are operated and owned
by Telkom, while the Palapa-C1 is owned and operated by PT
Satelindo, which also runs GSM.

The Palapa-B2R, which orbits along 108 degrees east longitude,
is expected to end its operation in March 1998, while the Palapa-
B4 which orbits along 118 degrees east longitude, will end in
April 2003. The Palapa-C1 satellite, launched last January, is in
orbit until March 2010, while the Palapa-C2 satellite, scheduled
to be launched next month, is expected to end its operation in
July 2010.

Garuda said that Telkomsel will operate later this year in all
of the country's 27 provinces, except East Nusa Tenggara and
Central and Southeast Sulawesi.

Satellite transponder applications in the country's eastern
regions will be less expensive than installing a network of
hundreds of transceiver stations.

In a recent hearing with members of the House of
Representatives, Telkomsel's president, Koesmarihati Sugondo,
said that the company plans to invest Rp 450 billion (US$192
million) this year for the expansion of its GSM business.

Telkomsel, which plans to launch its "official" commercial
operation in Jakarta on May 26 -- the first anniversary of the
company -- currently has 45,000 subscribers in 128 cities in 12
provinces. The company expects to increase the number of its
subscribers to 120,000 by the end of this year, most of whom are
expected to come from the greater Jakarta area.

"We currently have 220 base transceiver stations and plan to
increase the number to 562 by the end of this year," Garuda said.

Telkomsel began trial operation in the capital in March when
thousands of Jakartans started to flock to Telkomsel's customer
offices to subscribe. The digital mobile cellular telephone
market in Jakarta is still controlled by Satelindo, the first
company licensed to run GSM in Indonesia.

In addition to Telkomsel and Satelindo, the government has
also awarded a GSM license to PT Excelcomindo, the third GSM
carrier expected to start its business nationwide later this
year. (icn)

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