Motorola's Global Telecom Solutions Sector, one of the world's leading suppliers of Global System for Mobile Communication (GSM) digital wireless solutions, has signed an agreement for the supply of GSM 900 and GSM 1800 network infrastructure services and equipment with Indonesia's leading mobile operator, Telkomsel. The agreement, estimated to be worth $170 million for the first phase of the deployment will be completed by December 2002.
Anticipating tremendous cellular industry growth in Indonesia, Telkomsel has selected Motorola as one of its strategic long-term business partners. Currently the largest cellular operator in Indonesia with over 3 million subscribers, (nearly half the total cellular market in Indonesia) Telkomsel plans to deploy this network expansion in the regions of Jabotabek, West Java and Kalimantan. With this agreement Motorola (NYSE: MOT) will become the largest supplier of base stations to Telkomsel.
Motorola's turnkey services are designed to ensure the smooth, efficient running of Telkomsel's newly-expanded network. Turnkey services, including site acquisition, installation, integration and network optimization, are to be provided by a dedicated team of Motorola digital wireless network operating system professionals.
"Motorola is honored to be selected as a strategic long term business partner with Telkomsel. The number of recent contracts Motorola has signed in the region evidences the growing demand for wireless services throughout Asia. That trend is expected to continue as network operators, such as Telkomsel, prepare to provide mobile voice and data services and solutions for their customers," said Allen Ma, vice president and general manager of the Asia Region for Motorola's Global Telecom Solutions Sector. "It is through these types of solutions and services that we will make future devices smarter and our lives simpler," said Ma.
"As a supplier of network infrastructure since 1996, Telkomsel is confident in Motorola's ability to deliver high quality services and equipment," said Mr. Mulia Tambunan, CEO of Telkomsel. "It is through this confidence that we announce a strategic partnership with Motorola and the intention to grow Telkomsel's network to offer dual band services with double the subscriber capacity in just 3 years."
In a separate agreement, Motorola has been selected as the only vendor to provide a GPRS trial to Telkomsel in the city of Jakarta. Motorola's comprehensive GSM technology offering provides operators a clear migration path from GSM with the implementation of GPRS networks as they evolve towards UMTS 3G systems. High-speed packet data over GPRS enables access to Internet-based content and services via a mobile terminal and opens up the mobile market to a wealth of data applications, including e-commerce, email and data transfer.
Motorola, through its strategic alliance with Cisco Systems, Inc., consistently leads the industry in delivering working GPRS solutions. By creating the world's first GPRS devices, applications and networks, Motorola's GPRS solutions offer a comprehensive approach that enables operators to deliver a world of high-speed, high-value data services today.
As the one of Indonesia (4) Digital Cellular Operators, Telkomsel has a customer base of 3.2 million (year end 2001) representing around 48% market share. A innovative and trend setting operator, Telkomsel boasts the widest national coverage. As a business entity, Telkomsel has sustained growth throughout the local and regional economic crisis. A survey published by Far Eastern Economic Review, featured Telkomsel in the last 2 years rising in its position as Asia's Leading Company in Indonesia (Rank No. 7 on 2001 and No. 9 on 2000).