The telecommunications revolution never ends

The telecommunications revolution never ends

JAKARTA (JP): The revolution in telecommunications and
information technology, including cellular telephone, is
unfolding rapidly. You may discard tomorrow any mobile cellular
telecommunications systems or terminals you use today.

But if you are careful in choosing a cellular system, you may
be able to keep your handphone for some time to come.

There are three mobile cellular telecommunications systems in
use in Indonesia: the analog Advanced Mobile Phone System (AMPS),
the Nordics Mobile Telephones (NMT), and the Global System for
Mobile Communications (GSM).

The first system, AMPS was originally developed in the United
States. In Indonesia, the system operates at between 870
megahertz (mhz) and 890 mhz. It is run by three operators: PT
Komselindo, PT Centralindo and PT Telekomindo.

Transmission and signal power in AMPS are good, but in terms
of security, users should be aware that this system is the most
easily cloned.

To improve service, many AMPS operators have upgraded the
system to include the latest generation of digital cellular
technology, called Code Division Multiple Access, or CDMA.

The second system, NMT, is run in Indonesia by PT Mobisel.
Fewer than 25,000 people use this system, which operates at
between 450 mhz and 470 mhz. The system, which was developed by
Nordics, is more suitable for mobile vehicles.

GSM is one of the most popular digital systems in Indonesia
and other countries. Of the 100 million cellular users in the
world, 20 million are GSM subscribers. In Indonesia, GSM, which
operates at 890 mhz to 915 mhz, is run by PT Telkomsel, PT
Satelindo and PT Excelcomindo.

Of Indonesia's 450,000 cellular users, Satelindo claims a
share of 200,000 users, and Telkomsel boasts 135,000.
Excelcomindo, which just launched its service earlier this month,
is still running trial operations and expects 1,500 users to
subscribe to the system.

Some cellular telephones are moving to even higher
frequencies, operating at between 1.8 and 1.9 gigahertz, to be
able to serve more terminals or handsets.

Indonesia currently runs trial operations for the Personal
Handy-phone System (PHS) and the Digital Cordless System (DCS-
1800). These two systems will likely be adopted some time next
year as complements to the three existing systems.

In addition, PT Asia Cellular Satellite System (ACeS) plans to
begin operations in 1999 of a global mobile satellite system
which uses an orbital satellite to transmit cellular signals,
rather than the ground station network.

While the telecommunications operators battle to deliver
services, telecommunications equipment manufacturers race to
create more sophisticated terminals and handsets.

Nokia of Finland's latest product, the Nokia 9000
Communicator, combines a GSM handset, a telecopier and an
organizer. The product costs about Rp 5 million.

The U.S. company Motorola recently launched Star Tac, which
claims to be the smallest AMPS handset, with a dimension of just
9cm by 5cm by 2.5cm. The product costs about Rp 4.7 million.

Meanwhile, Germany Bosch has the M-Com 725, claimed to be the
first GSM car phone equipped for data and fax transmission via
laptop.

The Swedish company Ericsson is currently developing a dual-
function handset applicable to both GSM and the satellite system
operated by ACeS.

Race

Meanwhile, the race to develop multi-function handsets is also
intensifying.

Telecommunications experts are still trying to develop multi-
band mobile handsets. Perhaps as people become more mobile, they
will need to carry more than one handset because different
systems operate in different countries.

Adi R. Adiwoso, president of ACeS, said that his company
signed a US$225 million contract with Ericsson to supply dual-
band handsets for his company.

"People will be able to use ACeS or GSM when each of the
system is more proper," he said.

ACeS is a mobile satellite system that allows any person with
a handheld device to communicate directly with another person
carrying a similar device within the satellite coverage, and,
through ground station gateways and normal public switch
telephone networks, to any person with a cellular or regular
fixed telephone anywhere in the world.

The project will cover an area spanning from India in the west
to Indochina in the east, and from China in the north to members
of the Association of Southeast Asian Nations (ASEAN) in the
south, he said.

"We will announce the prototype of ACeS handsets in 1997 in
the hope that such a type can be adopted worldwide," he said.

The state-owned telecommunications equipment manufacturer PT
Inti plans to produce cellular telecommunications handsets for
the Personal Handy-phone System (PHS) jointly with a number of
Japanese firms.

Inti had assembled a number of PHS terminals called the Inti
Telkom Advance Cordless Telecommunications System, nicknamed
Intacts. The dimensions of the PHS terminal are 115mm in height,
43mm in width and 25mm in length, while its weight is just 120g,
including the battery.

One of the lightest cellular handsets in the world, the
Ericsson GH 388, is 130mm tall, 49mm wide, 23mm in length and 170
grams in weight.

Tariffs and fees

Mobile cellular telephone operators charge Rp 388,400 for new
installation, which includes Rp 300,000 for the activation fee,
Rp 8,400 for frequency utilization, Rp 25,000 for administrative
fee and Rp 55,000 for the first-month charge.

The monthly billing statement includes the fixed Rp 55,000
monthly charge and Rp 8,400 for frequency utilization,
in addition to the fees based on the volume of calls, which are
subject to the 10-percent value added tax.

Cellular operators admit that the current billing system is
complicated, but say that the fault lies with the government,
which has yet to deregulate the interconnection system between
the cellular and public switching telephone network (PSTN).

The complicated traffic calls from cellular telephones are
also caused by the zone divisions arranged by the state-owned
domestic telecommunications operator PT Telkom for long-distance
call traffic.

Analysts said that cellular telephone operators should no
longer recognize PSTN tariffs, but only air-time charges.

The current cellular telephone tariff structure in Indonesia
consists of three components: an air-time charge, local call
charge and long distance charge.

The air-time charge includes two tariffs: from cellular to
fixed-telephone (Rp 275 per minute), and from cellular to
cellular phone (Rp 550 per minute).

Local calls fall into two time divisions: normal and peak
hour. Normal hours are between 3 p.m. and 9 a.m., while peak
hours fall between 9 a.m. and 3 p.m.

Long distance calls are subject to five time divisions which
have different charges depending on work days and holidays.

Cellular operators set up three zone divisions. Zone one is
for calls made within the 31 km to 200 km range. The range of
zone two is 200 km to 500 km, and the range of zone three is more
than 500 km.

Telkom sets three time zone divisions: zone one, between 30 km
and 200 km; zone two, between 200 km to 500 km; and zone three,
more than 500 km.

GSM subscribers must also remember that they will still be
charged if they receive international and long-distance calls
when they are out of town.

For example, a subscriber registered in Jakarta who is
visiting Surabaya in East Java and receives a call from a fixed
telephone in Bandung in West Java will be charged Rp 1,650 per
minute for the long-distance call in Telkom's Zone three.

Mobile cellular users face higher charges if they use a number
of optional features offered by the operators. Because the
government controls both the tariffs for telephone calls and the
installation fee, cellular operators can compete only in
services, meaning that they need to be creative in offering
features.

The monthly charges for the features range from Rp 16,000 to
Rp 25,000 a month depending on the additional facilities, which
include call forwarding, voice mail, a fax service and short
message service.