Telkom to Take Part in Fiber Optic Tender
Monday, 06 November, 2006 | 08:06 WIB

Tempo Interactive, Jakarta: PT Telekomunikasi Indonesia Tbk (Telkom) will take part in the fiber optic network construction tender valued at US$1.5 billion, or around Rp13.65 trillion, which will be offered in October of next year.

Managing Director of Telkom Arwin Rasyid said that he is still examining the best model for the company to take part in the tender.

“Whether or not we form a consortium, Telkom will certainly play a large role in constructing the fiber optic network,” he said last week in Jakarta.

Telkom's involvement, according to him, will be aimed at increasing the capacity of its owned network.

This will support increases in both Telkom's customer growth as well as its subsidiaries such as PT Telekomunikasi Selular (Telkomsel) and PT Telkom Vision, a pay for TV broadcast provider.

Alvin went on to say that the company will reduce its broadband tariff so that the access to the Internet will be cheaper for the general public.

Based on data from the Directorate General of Posts and Telecommunication, the broadband tariff in Indonesia is US$3,500 per two megabytes per second.

This is more expensive compared to Singapore where the tariff is US$1,200 per two megabytes per second.

“By the end of 2007, Telkom’s broadband tariff will be reduced,” he said.

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