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Indosat, Telkom To Team Up In Satellite Service
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Indosat, Telkom To Team Up In Satellite Service

From http://www.thejakartapost.com/

Two giant Indonesia telecommunication operators PT Telkom and PT Indosat have agreed to jointly provide a satellite service for the two companies’ customers in the country.

Under the agreement signed in Jakarta on Wednesday, the new satellite would replace Indosat’s satellite, Palapa C-2 that will stop orbiting in 2014, Telkom president Rinaldi Firmansyah said following the signing of the agreement.

He said that Telkom and Indosat would spend up to US$200 million to procure the new satellite, which would be also operated to meet the future need for high definition television (HDTV),and other telecommunication activities that require more bandwidth.

“Telkom and Indosat will form a team to decide some technical matters including the price and cooperation mechanism, so that both companies can find out how much investment is needed for the project,” Rinaldi said after the signing of the agreement.

According to Rinaldi, the investment needed strongly depends on how many transponders would be available in the satellite. A transponder is a device unit consisting of a receiver and transmitter.

Telkom spent about $200 million for its latest satellite, which has 48 transponders, while Indosat had spent around Rp 2 trillion to buy a Palapa C-2 satellite, which only has 36 transponders.

Currently Telkom operates Telkom-1 and Telkom-2 while Indosat operates Palapa-D and Palapa C. Telkom will also launch a Telkom-3 satellite next year. It was reported that Palapa C-2 and Telkom-1 will stop orbiting in 2014.

Fadzri Sentosa, the Indosat director and chief wholesale and infrastructure officer, said that both companies would do some preparation on the project starting this year, expecting the project to be accomplished in 2014.

“We have the budget for this project, but we still have to discuss with Telkom based on our cooperation mechanism.” Fadzri said.

At present, the government controls the majority stake in Telkom, but in Indosat, it only has a 11.32 percent stake.

Indosat, the second second-largest telecommunications firm in Indonesia, booked a 5.8 percent increase in total revenue to Rp 9.66 trillion in the first half of this year from Rp 9.14 trillion in the same period, last year.

However, the company’s net profit plunged by 71.5 percent to Rp 287.1 billion in the first six months, this year from Rp 1 trillion in the same period a year earlier. The company said that operational efficiencies and a relatively stable foreign exchange environment had a positive impact on revenue.
[Image: indiandthsig.php]
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