3G Phone Licenses

Sep 15th, 2006, in Business & Economy, by

Three new licenses have been granted for the provision of 3G phone services.

The licenses to operate third generation cellular mobile phone networks were awarded to

  • PT Hutchison CP Telecom Indonesia,
  • PT Telekomunikasi Selular (Telkomsel), and
  • PT Excelcomindo Pratama Tbk.

by the Direktorat Jenderal of Post and Telecommunications. Two other applicants have not succeeded as yet, PT Indonesian Satellite Corporation Tbk. (Indosat) and PT Natrindo Telepon Seluler.

Hutchison CP Telecom Indonesia, is a subsidiary of Hutchison Telecommunications International Ltd. (Whampoa Group) located in Hong Kong, and had actually won the license on August 29th.

On the 13th of September the two other licenses were awarded. Telkomsel, a subsidiary of PT Telekomunikasi Indonesia Tbk., won the right to provide third generation telephone services for Jakarta.

Excelcomindo (XL), a subsidiary of Telekom Malaysia Berhad, will provide services for greater Jakarta, including the towns of Depok, Tangerang, Bogor, and Bekasi.

Both Telkomsel and Excelcomindo are now waiting on the issuing of certificates allowing them to compete in other cities of Indonesia including Bandung, Surabaya, Medan, Semarang, Yogyakarta, Balikpapan, and Makassar, as well as for the island of Bali.

Both Indosat, a subsidiary of Singapore Technologies Telemedia, and Natrindo, a subsidiary of Maxis Communications Berhad, are hoping to be ready to launch their 3G services by the end of the year.

According to the rules laid out by the government the winners of the licenses are now obliged to build networks in at least two provinces with a minimal coverage of 10% of residents, within the first year of service. By the end of the second year at least five provinces must be serviced with a minimum coverage of 20% of residents, the third year 8 provinces/20%, fourth year 10 provinces/30%, fifth year 12 provinces/30%, and sixth year 14 provinces/30%.

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