As has been reported, the company has notified Space Systems/Loral (SS/L), which is constructing an FS1300 satellite for the project, that it intends to delay delivery of the satellite, which was originally scheduled for early 1999. PSN has opted to delay delivery in recognition of economic conditions in Indonesia. However, the company also noted that the M2A service remains viable using existing satellite capacity owned by the company, and that it continues to work toward commencing a reduced-capacity, yet fully functional, version of M2A in 1999.

``Given the economic conditions prevalent throughout Asia in recent months, the company has naturally developed strategic alternatives for each of its telecommunications projects in the event these conditions persist,'' noted Mr. Adi Adiwoso, Chief Executive Officer of both Multi-Media Asia Indonesia (M2A's parent entity) and Pasifik Satelit Nusantara. ``In the case of M2A, we have long established that the project is feasible using the M2A ground segment supplied by Alcatel with our existing extended C-band transponders on the Palapa C1 and Palapa C2 satellites. Such a structure can deliver full M2A service as originally contemplated, with sufficient capacity to cover the first two to three years of market demand. Ultimately, of course, launch of the M2A satellite is vital to our goal of reaching a maximum number of subscribers and delivering to Asia the first fully integrated voice, data, and multimedia communications system. We continue to work towards that goal and look forward to resuming our work with SS/L when economic conditions permit.''

Mr. Adiwoso continued, ``M2A will offer unprecedented opportunities for development in Indonesia and Asia by delivering multimedia telecommunications services at very low cost. It is a revolutionary program for many in the Asia-Pacific region, and key to developing the infrastructure which is crucial to Asia's future.''

M2A is a highly advanced multimedia satellite network, which will ultimately provide telephone, fax, Internet access, and other multimedia services such as direct-to-home (DTH) television to some four million subscribers in Indonesia and other Asian countries. The system is designed to overcome the various challenges that have left Indonesia and other parts of Asia with among the lowest teledensities in the world.

Mr. Adiwoso also commented on PSN's mobile satellite project, Asia Cellular Satellite (ACeS), noting, ``The fully funded ACeS project continues on schedule for its launch in the first quarter of 1999. The satellite's critical design review (CDR) was completed in mid January, and the system's CDR is expected to be completed in the coming weeks. To date, we have signed National Service Providers (NSP's) for Thailand, Indonesia, the Philippines and Taiwan, and formed a joint venture with two cellular operators in India. ACeS is also in advanced discussions with three other countries within its coverage area.''

Pasifik Satelit Nusantara (PSN) is the first private satellite communications company in Indonesia and, with over US$200 million in assets, is also one of the leading satellite companies in the Asia Pacific. Based in Jakarta, PSN is focused on becoming a fully integrated provider of satellite-based telecommunications products and services in Asia, including the wholesale leasing of satellite capacity and the following three new services under development which are to be offered to end-users:

• Xpress Connection (TM), a low cost, VSAT-based rural telephone service;
• Asia Cellular Satellite (ACeS), a satellite-based, handheld digital mobile telecommunications system providing both voice and data services; and
• Multi-Media Asia (M2A), Asia's first satellite-based multimedia digital telecommunications system (MMDS), supporting two-way voice and data services, Internet access, fax and DTH television services.

Copyright 1999 AFP. All rights reserved. The material on this page is provided by AFP and may not be published, broadcast, rewritten or redistributed.

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