Two of Indonesia’s major telcos PT Indosat (Indosat) and PT Telkom (Telkom) are teaming up to deploy a new satellite to benefit the entertainment, communications and cellular backhaul markets in Indonesia, one of Asia’s biggest markets. Fadzri Sentosa, director and chief wholesale and infrastructure officer for PT Indosat, told Satellite News that the deal was “very strategic both for Indosat and Indonesia itself.”
    The two telcos will now look to work together ahead of the launch of this satellite in 2013. Sentosa said his company has the required transponders needed for the development. “It will mainly be a C-band satellite, but there may be some Ku-band capacity on it also. We will look to launch this satellite at the end of 2013. I would say it would be a medium sized satellite. We are likely to commission the satellite in the first part of next year.”
    Reducing capital expenditure requirements was a key factor behind Indosat’s decision to team up with Telkom to build the satellite. “It is very important to see the building of capacity and infrastructure in Indonesia. We are planning to launch a new satellite on our existing slot at 150.5 degrees East. Our old satellite, Palapa-C2 satellite, is currently using the slot. This satellite will come to the end of its life in 2014. We still have three years to procure a replacement satellite. The new satellite will be replacing Palapa-C2, which is already full, and has 24 standard C-band transponders. We will transfer all of this to the new satellite. We expect to have more than 24 transponders on the new satellite. This deal is also important as it secures an important orbital slot.”
    Indosat’s plans are driven by an increased demand for high-capacity mobile broadband services, satellite based backhaul services and government capacity in Indonesia. The country’s government has set forth initiatives not only to fulfill Internet requirements, but to connect different parts of the government to a central government network. “They want to have over 10,000 points of connectivity in the rural areas. This year, we have been helping the government install 1,500 points of connectivity. We have been using Ku-band technology in order to fulfill this,” said Sentosa.
    While Sentosa is optimistic about the role of satellites in Indonesia, he admits interference issues have been a problem in Indonesia and calls for stronger regulation. “The demand for satellite capacity is still very strong. However, while demand has been increasing, pricing for capacity has flattened in the last year. We have also seen some interference issues in extended C-band transponders, particularly in terms of broadband wireless access which needing to be regulated more strictly,” he said.
    Indosat could also look to launch further satellites, although Sentosa admits this is not on the horizon just yet. “We are looking at other opportunities for new satellites. But, right now, this is the only satellite we are working on. I think if we see there are more demands for capacity, we are open to launching other satellites. There are several options for us. There are opportunities to form other partnerships with other satellite operators, then this is something we would be interested in. We are open to have partnerships with other operators,” he said.
    While the operator may look to build other satellites, it has no plans as yet to build Ka-band satellites, according to Sentosa. The company, which has a thriving cellular business in Indonesia, mainly uses satellite for cellular backhaul services.
    But, the new satellite will have other uses. “The main usage for the satellite is cellular backhaul for our internal mobile business. But, we also serve other mobile operators and help them expand their footprint. Demand is also increasing for DTH. Thirdly, we are engaging in social projects, which are bringing broadband services to rural areas in Indonesia. This is under a Government’s Universal Service Obligation (USO) project. We are taking part in this project and using our capacity to provide connectivity,” Sentosa said.