AT&T Wins Indonesian License to Expand Multimedia Services

Jakarta Globe, June 08, 2011

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AT&T Inc., the second-largest US wireless provider, said it won a license to provide multimedia services in Indonesia, allowing it to expand into services including teleconferencing and managing computer networks.

PT AT&T Global Network Services Indonesia, the local venture 95 percent owned by ATandT, is the first foreign operator granted the permit in Indonesia, Roman Pacewicz, AT&T senior vice president of marketing and global strategy for business solutions, said in a telephone interview from Dallas On wednesday.

AT&T will invest about $1 billion this year to enhance services on its global network offering cloud computing and mobile applications to help businesses increase productivity and cut costs, the Dallas-based company said in May.

Indonesia’s economy, Southeast Asia’s biggest, will probably expand 7 percent annually on average in the next five years, Nomura Holdings Inc. said in a report on Tuesday.

“This operating license will allow us to deliver services more seamlessly and effectively as the Indonesia market grows,” Pacewicz said.

Previously, AT&T relied on local partners to help set up virtual private networks for customers, Pacewicz said. The company’s local venture will now expand to provide services including video conferencing directly to customers, he said.

The wireless service provider’s worldwide sales from business solutions including Ethernet, virtual private networks and hosting gained 19 percent in the first quarter from a year earlier.

AT&T will also look for opportunities in Vietnam, where government is easing controls, he said.

Bloomberg