PT Mobile Selular Indonesia signed a credit note facility for $31 million with 12 national banks for a term loan.
Lead arrangers are PT Makindo Securities and Bank Umum Servitia; co-arranger is Pan Indonesia Bank.
PT Mobile Selular, or Mobisel, launched a Nordic Mobile Telephone-450 network about a year ago, saying the technology was ideal for Indonesia’s non-urban terrain.
Mobisel reports having 21,000 subscribers, located primarily in the Jakarta-Bandung area, including Tangerang, Bogor and Bekasi.
“We look upon the current cellular penetration as just the tip of the iceberg,” said Carlson Smith, Mobisel chief financial officer, “since up to now cellular operators have primarily targeted an elite, urban segment of the market. Even so, we expect customers living in large cities will also appreciate our extensive coverage when selecting a cellular service combining superior quality with the widest roaming capabilities within Indonesia.”
By May, Mobisel expects to provide continuous coverage and its own microwave long-distance backbone from Lampung in southern Sumatra, through Java, to Bali and Lombok. The company said the network will include key cities and major roads connecting these areas.
Mobisel is conducting a trade-in program, allowing customers to exchange old cellular phones for new terminals offered by Nokia Mobile Phones and Maxon Corp.
Mobisel is a joint venture of PT Rajasa Hazanah Perkasa (70 percent), PT Telkom (25 percent) and Yayasan Dana Pensiun Pegawai Telkom (5 percent). Network equipment was provided by L.M. Ericsson of Sweden.
