Wiloto Corp. - Indonesia Expert, Strategic Indonesia, Indonesia Public Relations

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Monday, February 06, 2006

Telkom, Indosat allowed to bid for high-speed phone services

JAKARTA (Bloomberg): PT Telekomunikasi Indonesia, Indonesia's biggest telephone company, its mobile-phone unit and three rivals have been allowed by the government to bid to operate high-speed wireless services.

Telkom's unit PT Telekomunikasi Selular, PT Indosat, Indonesia's second-largest phone company, PT Bakrie Telecom and PT Excelcomindo Pratama, which is controlled by Telekom Malaysia Bhd., will be allowed to bid. The government will offer two or three licenses, and the winners will be decided on Feb. 8, said Basuki Yusuf Iskandar, director general of post and telecommunications.

"The winning bidders must commit to having presence in at least two provinces and providing 10 percent nationwide coverage in the first year," Basuki told reporters in Jakarta on Monday.

Phone companies are hoping to boost their earnings on rising demand in Indonesia, where fewer than one in four of its estimated 238 million people has access to a telephone. Telkomsel and Indosat control more than 80 percent of the nation's mobilemarket.

Indonesia will offer licenses starting at Rp 100 billion (US$11 million) for 5-megahertz frequency.

The so-called third-generation, or 3G, services allow users to download video clips and surf the Internet faster

February 06, 2006

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