Two firms get rights to operate int'l calls

Two firms get rights to operate int'l calls

JAKARTA (JP): The government, under a decree, is handing over
the exclusive rights to international telecommunications services
in the country until the year 2005 to PT Indosat and PT Satelit
Palapa Indonesia (Satelindo).

The state-owned international telecommunications operator PT
Indosat said in its latest newsletter that the decree on the
"duopoly" of international telecommunications services companies
was signed by the Minister of Tourism, Post and
Telecommunications on March 1.

According to decree No. 6/102/1995, the government may license
another company after a 10-year period.

The are currently three major telecommunications regulations
in the country, including the Telecommunications Law No. 3/1989,
Government Decree No. 8/1989 and the Ministry of Tourism, Post
and Telecommunications Decree No. 39/1993. Under the regulations,
only state-owned companies are allowed to operate basic
telecommunications services.

The ministerial decree stipulates that the tariff of
international telecommunications services is determined by the
minister, which applies to both Indosat and Satelindo so they can
compete in terms of services rather than tariffs.

Indosat is the country's first state-owned company listed on
the New York Stock Exchange. Satelindo meanwhile, is a private
firm running three major operations in satellites, digital
cellular telephones and international calls.

Satelindo is 45 percent owned by PT Bima Graha, a subsidiary
of Bimantara Group, 25 percent by DeTe Mobil of Germany, 22.5
percent by PT Telkom, the state-owned provider of domestic
telecommunications services, and 7.5 percent by Indosat. (icn)