October 4, 1995
NYNEX CONTACT: Media Relations,
NYNEX Joins Indonesian Cellular Venture; Largest
U.S. Investment in Indonesian Telecommunications Market
NEW YORK -- NYNEX will acquire 23 percent
ownership of Excelcomindo, a joint venture that will bring digital
telephone service to 195 million potential customers in Indonesia,
fourth most populous nation.
NYNEX said it will be the strategic operating partner in Excelcomindo,
providing technical, customer service, marketing and sales management
Other parties to the joint venture are PT Telekomindo, the major
shareholder; Mitsui, the Japanese trading firm; Asian Infrastructure
an Asian investment firm; and several local investors, including
Telekomindo, Yayasan Kartika Eka Paksi, and Yayasan Tridaya.
"This investment is consistent with our high-growth strategy
in Asia," said
Frederic Salerno, NYNEX vice chairman - Finance and Business Development.
"NYNEX is already playing a leading role in the region through
joint ventures building a total of more than 3 million lines in
Philippines and Indonesia.
"A very low telephone penetration rate coupled with rapid
led to a dramatic increase in demand for telecommunications in
Salerno added. "Digital cellular service using state-of-the-art
technology is an ideal way to rapidly make telephone service available
densely populated cities."
"The government of Indonesia has placed a high priority
on the development of
telecommunications in our country and has created a high level
of competition to
bring advanced services to the cellular market," said Peter
Sondakh, chairman of
the board of PT Telekomindo.
"NYNEX has the experience and technology developed in the
U.S. markets that will be of great benefit to Excelcomindo,"
Sondakh said. "We
are very pleased to have NYNEX as an investor and operating partner
Excelcomindo plans to begin offering digital mobile telephone
service based on
the GSM standard beginning in mid-1996 and to reach large Indonesian
throughout the country by 1998.
Indonesia, which consists of more than 17,000 islands, is the
largest nation. It has one of the lowest telephone penetration
rates in the
world (1.8 telephone lines per 100 people). The government has
ambitious programs to improve all sectors of the telecommunications
The Indonesian market of some 195 million potential customers
untapped. The current mobile communications market comprises
and 150,000 subscribers on four regional analog networks and two
licensed national GSM networks.
NYNEX's investment in Excelcomindo represents one of the largest
investments -- and the largest U.S. investment -- in the Indonesian
telecommunications market to date.
Excelcomindo will hold one of three nationwide licenses for
The new company represents NYNEX's largest international cellular
date. NYNEX's other significant international cellular venture
is in Greece,
where it is a 20 percent owner with a significant operational
role in STET
Hellas Telecommunications, which has been providing cellular telephone
PT Telekomindo is a provider of a wide range of telecommunications
including paging, public telephones and AMPS cellular services
in regional and
nationwide markets in Indonesia.
PT Santana Telekomindo is a subsidiary of PT Indobuildco, an
company with wide interests in real estate, oil and hotels.
The Asian Infrastructure Fund is a $1 billion private equity
fund formed to
invest in entities engaged in the development, ownership or operation
infrastructure facilities in selected countries in Asia.
Yayasan Kartika Eka Paksi and Yayasan Tridaya are retirement
the Indonesian army and the office of the Attorney General respectively.
NYNEX Asia Communications
NYNEX is a major communications provider in Asia, with joint
o Thailand: TelecomAsia, NYNEX's joint venture with the Charoen
Group is constructing and operating a 2.6 million-line telecommunications
network -- larger than Manhattan's. A TelecomAsia subsidiary
also is providing
cable TV services in Bangkok over its fiber backbone network.
o The Philippines: NYNEX and its partners in Bayan Telecommunications
Holdings Corp. hold licenses to provide international long distance
to install a minimum of 300,000 telephone lines in metropolitan
Manila and the
o China: NYNEX and the Chinese Ministry of Electronics Industry
to jointly study the feasibility of interconnecting various existing
o Japan: NYNEX is a participant in three TU-KA cellular consortia,
mobile communications services in three regions of Japan.
o FLAG: NYNEX also is the managing sponsor of FLAG (Fiberoptic
the Globe), a submarine fiberoptic cable project with particular
value to Asia.
FLAG will link Japan, China, Hong Kong, India and Thailand with
in the Middle East and Europe. NYNEX's co-sponsors in FLAG are
from Japan, Thailand, Hong Kong, Saudi Arabia, and the United States.
NYNEX is a global communications and media company that provides
a full range of services in the northeastern United States and
high-growth markets around the world, including the United Kingdom,
Thailand, Gibraltar, Greece, Indonesia, the Philippines, Poland,
Slovakia and the Czech Republic.
The Corporation is a leader in the telecommunications, wireless communications,
cable television, directory publishing
and entertainment and information services.
FAX copies of recent NYNEX news releases are available free of charge, 24
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