Telkomsel starts GSM expansion in N. Sumatra
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)