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Telecommunications Industry Update: February 1999

Strategic Insights

— 1 min read

The Asian telecommunications industry was marked by significant events in February 1999, with Indonesian state operator PT Indosat facing a US$12.5 million loss after the collapse of its Canadian subsidiary, Alphanet Telecommunications Corporation. Indosat's president, Tjahjono Soerjodibroto, stated that the company's management had sought fresh funding to rescue Alphanet but was unsuccessful. Meanwhile, in Indonesia, PT Astra Graphia announced a partnership with Ericsson to optimize its telecom services, while the National Telecommunications Commission (NTC) of the Philippines planned to issue a preliminary gauge to lay down clear-cut policy on interconnection.

Key Takeaways:

  • PT Indosat suffered a US$12.5 million loss due to the collapse of its Canadian subsidiary, Alphanet Telecommunications Corporation.
  • Indosat's president, Tjahjono Soerjodibroto, stated that the company's management had sought fresh funding to rescue Alphanet but was unsuccessful.
  • PT Astra Graphia partnered with Ericsson to optimize its telecom services.
  • The Philippine Long Distance Telephone Company (PLDT) was likely to raise its monthly phone rates due to revenue losses from international calls.
  • The National Telecommunications Commission (NTC) of the Philippines planned to issue a preliminary gauge to lay down clear-cut policy on interconnection.
  • Telstra refused to confirm whether it is in the running for a soon-to-be-privatized slice of Indonesia's part-state-owned long-distance carrier Indosat.

Statistics:

  • PT Indosat's financial loss: US$12.5 million
  • Alphanet Telecommunications Corporation's collapse: caused a loss of Rp106 billion (approximately US$12.5 million)
  • Canon Sales Co. pretax profit: 10.9 billion yen (approximately US$95.04 million)
  • Canon Sales Co. total sales decline: 12% to 685.7 billion yen
  • Canon Sales Co. PC sales decline: 19%
  • Canon Sales Co. telecommunications equipment sales decline: 12%

Sources:

  • Asia Pulse (http://www.asiapulse.com)
  • COMTEX (http://www.comtexnews.com)
  • Jakarta Stock Exchange (JSX)
  • Australian Securities Exchange (ASX)
  • Philippine Long Distance Telephone Company (PLDT)
  • National Telecommunications Commission (NTC) of the Philippines
  • Indonesia's State Minister for Empowerment of State Enterprises Tanri Abeng
  • Telstra Corp (ASX:TLS)
  • Astra Graphia (JSX:ASGR)

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