Telkomsel starts GSM expansion in N. Sumatra
By I. Christianto
MEDAN, North Sumatra (JP): PT Telkomsel, a cellular mobile telephone operator, has embarked on its program here to expand its operations nationwide.
Telkomsel, 51 percent owned by PT Telkom and 49 percent by PT Indosat, was officially incorporated last May after it was appointed last year as an operator of the global system for mobile communications (GSM) cellular telephones.
Tekomsel, set up with an authorized capital of Rp 650 billion (US$288 million), has been operating the country's first GSM project on Batam and Bintan islands near Singapore, which was established in 1992 by Telkom.
Telkomsel's business here was officially launched yesterday by Minister of Tourism, Post and Telecommunications Joop Ave in a ceremony attended by Telkomsel's chief commissioner Rahardi Ramelan and North Sumatra Governor Raja Inal Siregar.
Garuda Sugardo, the company's operation director, said that by the end of this year, Telkomsel will expand its operations to other big cities, including Padang in West Sumatra, Bandar Lampung in Lampung, Palembang in South Sumatra, Bandung and Cirebon in West Java, Semarang in Central Java, Surabaya in East Java, Bali and Lombok in West Nusa Tenggara.
He said his company had prepared an investment of some Rp 200 billion for the expansion projects.
Telkomsel installed one switching center, 13 base transceiver stations (BTS) with an investment of some Rp 21 billion in Medan and its surrounding areas-- Tuntungan, Parapat, Belawan, Pulau Brayan, Tanjung Mulia, Tebing Tinggi, Binjai and Suka Ramai.
The company has so far listed some 2,300 GSM subscribers here since the facility was introduced just a couple of months ago.
In a series of expansions starting on Aug. 17, according to Garuda, his company planned to install 12 BTS in the Bali-Lombok area, 22 in West Java, 30 in East Java and 100 in Jakarta.
"We have also signed international roaming agreements with GSM operators in seven European countries, including the Netherlands, Sweden, Denmark, Finland, Swiss, Norway and Luxembourg, which will allow Telkomsel's subscribers to make calls to as well as receive calls from the countries," Garuda said yesterday.
He added that roaming agreements will also be completed with other operators from Germany, Italy and several Asian countries in the near future.
Telkomsel's expansion has caused more competition for PT Satelindo, the other GSM operator in Indonesia.
Satelindo, which has controlled the GSM market since September 1993 in the greater Jakarta area and in some areas in West Java, announced on Wednesday its expansion in Surabaya.
Telkomsel, however, has tried to attract more customers by allowing their subscribers to choose their own handsets sold by agents or other distributors.
Satelindo currently offers integrated GSM services, comprised of a handset and the subscriber's identity module card. The company offers six brands -- Nokia, Ericsson, Phillips, Alcatel, Motorola and Siemens.
Meanwhile, Telkomsel offers 11 brands, but subscribers are free to choose from 40 other brands.
"As the government regulates telephone charges, the competition lies only in the quality of services and handset prices," Garuda said.
Telkomsel's distributor in Medan, PT Bahagia Pratama, which is also a distributor for Satelindo in Jakarta, sells GSM telephones here at a cheaper price than in Jakarta.(icn)