Samsung Dominates Indonesian CDMA

Korea : Samsung Electronics has been stepping up exports of CDMA systems to Indonesia, concluding supply contracts with two Indonesian companies last year and a third operator this year. Export agreements were concluded with the private carrier Ratel Indo in May 2002 and with the state-run PT Telkom in December, making Samsung equipment the backbone of Indonesia’s wireless communications network.

A company spokesperson says the latest project is a package deal that includes US$120 million worth of CDMA systems to PT Mobile-8 Telecom, the first private operator to be established in Indonesia. Once in place, the hardware will have the capacity to serve 1.9 million subscribers.

The hardware will include both cdma2000-1x and EV-DO switching systems and base stations, testimony to Samsung’s superior system technology. By the end of this year, Samsung will have supplied enough 1x capacity to cover all of Java, including the capital city of Jakarta. The service area will then be steadily expanded next year. In addition, Samsung is scheduled to supply the EV-DO equipment to the Jakarta area at the end of 2003.

PT Mobile-9 Telecom is scheduled to begin commercial CDMA operation by the end of 2003. When this project is included, Samsung will have supplied CDMA hardware with the capacity to serve 3.65 million Indonesians.

A Samsung representative says, “The Indonesian wireless communications market has the world’s third largest growth potential, behind China and India. Samsung is now supplying EV-DO equipment here and is well positioned to participate in future upgrades to CDMA services in Indonesia.”

Importantly, this is the first telecommunications export project to receive financing support from Korea Export Insurance Corp. (KEIC), and close cooperation with KEIC played a key role in Samsung’s winning the order.