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Indonesian Cellular Firms Plan Huge Investment

Only about nine million of Indonesia's 220 million people have access to fixed-line phones.
Jakarta, Indonesia (XNA) Sep 20, 2004
Investment in Indonesia's cellular industry is estimated to reach more than 1 billion US dollars in 2005, as operators move to capitalize on growing market demand due to the relatively low penetration of fixed-line telephones, reports said Wednesday.

The two largest industry players - PT Telekomunikasi Seluler (Telkomsel) and PT Indonesian Satellite Corporation (Indosat) - are set to invest millions of dollars, mainly to build and upgrade their infrastructure, reported The Jakarta Post newspaper.

"The market here is still very big. So for the coming years, there are still a lot of opportunities for business players. And as a mobile operator, our job and focus is to build infrastructureto be able to collect as many new subscribers as we can," Telkomsel business director Leong Shin Loong was quoted as saying.

Loong said Telkomsel, which has about 50 percent of the total market share, expected to invest some 5 trillion rupiah (548.84 million dollars) this year.

"For next year, the figure will likely be up to 6 trillion rupiah, and most of that will be spent on infrastructure," he said.

As of August, Telkomsel had some 13 million subscribers, with 3.4 million new subscribers registered since the beginning of the year.

Indosat also plans to expand its infrastructure and facilities next year, with an estimated total investment of 500 million dollars.

"We need to expand all of our facilities if we want to meet ourtarget of securing between 32 percent and 33 percent of the total market share (from the current 30 percent)," said Indosat cellularmarketing director Hasnul Suhaimi.

Indosat, with 7.5 million subscribers as of the end of August, has revised upward its full-year target of subscribers from 8.5 million to 9.5 million, Hasnul said.

There are at least 25 million cellular telephone subscribers nationwide, a figure that is partly boosted by the low availability of fixed-line telephones. Only about 9 million of thecountry's 220 million people have access to fixed-line phones.

According to the Indonesian Association of Cellular Telephone Operators, there will be about 28 million cellular subscribers by the end of the year.

That figure is projected to skyrocket to about 40 million next year, mainly spurred by the wider availability of cellular services and lower rates.

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ARINC And Telenor Complete Successful Ground Testing Of In-Flight GSM
Annapolis MD (SPX) Sep 17, 2004
In an industry breakthrough, ARINC Incorporated and Telenor today announced they have successfully completed ground tests of a new mobile phone technology for use by passengers on commercial airlines.



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