November 2006

PALAPA Ring
The government is going to tender the mega project the optical transmission network PALAPA Ring in October 2007. The project is worth USD 1.52billion with IRR of 21% according to the government investment calculation.

FLEXI
HUAWEI and ZTE won the FLEXI tender for 9.77 million lines. The tender quoted value is IDR 722billion. The cost per line is less than USD 7.00. However the average project cost per line is USD 8.10. The project will be implemented in three TELKOM regional area: DIVRE II, DIVRE III and DIVRE VI.

LEN in Timor Leste
PT LEN has been awarded the contract for transmission and mobile satellite news gathering (MSNG) by Timor Leste government. The project is worth USD 2.4million.

Pay TV
The local market potential for pay TV is predicted to grow by 36% annually. With the number of subscriber of 360,000 today, the number of subscriber would reach 1.2million in 2010.

SME IT Expense ASIA PAC
SME is estimated the spending for IT security system would amount to USD 42million in 2007.

POWER Telecom
PT Power Telecom cooperates with PLN Central Java to deploy the Optical Fiber transmission line using PLN power network infrastructure (20KV network). The Power Telecom will use IP base Internet technology for the broadband over power line services. The services would include voice, data and video.

Wireless Access 2.3GHz/WiMAX
The government divides Indonesia into 17 fixed broadband wireless access group areas as follows:
Group 1 : Northern Sumatera
Group 2 : Central Sumatera
Group 3 : Southern Sumatera
Group 4 : JABOTABEK
Group 5 : Banten and Bogor
Group 6 : Western Java
Group 7 : Central Java
Group 8 : East Java: Western, Central and Northern
Group 9 : East Java: Eastern and Southern
Group 10 : Bali, NTT and NTB
Group 11 : Papua
Group 12 : Maluku and North Maluku
Group 13 : Sulawesi: South, Central, South East, West.
Group 14 : Sulawesi: North and Gorontalo
Group 15 : East Kalimantan: Southern
Group 16 : East Kalimantan: Northern
Group 17 : Western and Central Kalimantan

The tender will be held next year (February 2007). The bidder will be grouped into the following category: existing fixed telephone operators, mobile telephone operators, satellite and other operators, and companies that have not possessed operator license.
For each group area the bidder could bid for two block frequency bands (2x15MHz), so that if one group area has 90MHz, there could be maximum 6 companies who awarded the contract for 15MHz frequency band each.

TELKOM
TELKOM Indonesia target for FLEXI services in 2007 is 6.2 million subscriber total. TELKOM is going to spend IDR 600billion annually to develop telecommunication infrastructure in Eastern Indonesia (KTI).

Cellular Telephone
According to NOKIA Indonesia the cellular phone growth prediction is about 27% per year for the next 4 years. The estimated number of customers in 2010 is 155million. It is estimated that the cell phone market potential in 2007 would be 13million units. This approximately grows 27% from 10million in 2006.

COMPUTER
Indonesia would need 25million computers in order to increase the accessibility to the internet which is predicted to be 20million internet users to the end of this year.

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