A new Star rises

22 Apr 2004

PT Indonesian Satellite Corp (Indosat) is to launch a new fixed wireless access (FWA) service Star One by the end of 2004 and to that end has joined forces with three provincial and five regental administrations in the country to jointly roll out 500,000 new FWA lines. According to Indosat president Widya Purnama, the provincial administrations of Bali, Central Java and Yogyakarta, along with the regental authorities of Kulonprogo, Bantul, Gunungkidel, Sleman and the municipal administration of Yogyakarta have agreed to invest in the project to bring greater communications access to their respective territories. The project will complete Indosat’s objective of deploying a million FWA lines in the country: it has already announced plans to roll out 500,000 lines by the end of May, 300,000 in Greater Jakarta and 200,000 in East Java. The new ventures will be based on a revenue-sharing scheme with each administration depositing 25% of the total construction costs upfront as a gesture of goodwill. Although the overall cost has not been disclosed, Widya is on record as saying the per line setup cost could reach USD70. Star One’s new CDMA-based service will compete with Telkom Flexi, the rival offering of state-owned incumbent PT Telkom, which is causing headaches for Indonesia’s GSM operators by providing cellular services at fixed line rates.