NYNEX Joins Indonesian Cellular Venture; Largest U.S. Investment in Indonesian Telecommunications Market

October 4, 1995

NYNEX CONTACT: Media Relations,
(212) 395-0500

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,

the world's

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

Fund (AIF),

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

partnerships and

joint ventures building a total of more than 3 million lines in

Thailand, the

Philippines and Indonesia.

"A very low telephone penetration rate coupled with rapid

economic-growth have

led to a dramatic increase in demand for telecommunications in


Salerno added. "Digital cellular service using state-of-the-art

engineering and

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

highly competitive

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

in this


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

world's 15th

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

is virtually

untapped. The current mobile communications market comprises

between 100,000

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

GSM cellular


The new company represents NYNEX's largest international cellular

venture to

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


since 1993.

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

foundations for

the Indonesian army and the office of the Attorney General respectively.

NYNEX Asia Communications

NYNEX is a major communications provider in Asia, with joint

ventures in:

o Thailand: TelecomAsia, NYNEX's joint venture with the Charoen

Pokphand (CP)

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

services and

to install a minimum of 300,000 telephone lines in metropolitan

Manila and the

Philippines provinces.

o China: NYNEX and the Chinese Ministry of Electronics Industry

have agreed

to jointly study the feasibility of interconnecting various existing

networks in


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

Link Around

the Globe), a submarine fiberoptic cable project with particular

value to Asia.

FLAG will link Japan, China, Hong Kong, India and Thailand with

landing points

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
a day. Call 1-800-331-1214 and an automated system will provide

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