Multinational Companies to Benefit as AT&T Becomes First Foreign Telecom Operator to Receive New Telecom License in Indonesia

Companies with global operations can now better capture opportunities in one of the world’s fastest growing countries – Indonesia, with GDP growth rate predicted at 6.4% in 2011 and an investment growth rate of 13%.1

AT&T announced today it has become the first foreign telecom operator to secure a Multimedia Services Operator (MSO) license in Indonesia. Through its joint venture PTAT&T Global Network Services Indonesia (AT&T Indonesia), this reinforces its commitment to serving the global needs of multinational customers with operations in Indonesia and throughout the world.

Today’s announcement was made possible by the Indonesia Government’s policy permitting up to 95% foreign ownership for communications services in the country. AT&T owns 95% of the joint venture. The license will enable AT&T to:

  • Directly deliver services to multinational customers in Indonesia
  • Improve the customer experience through simpler contracting and billing arrangements
  • Expand its portfolio of services
  • Shorten the development time for new products and services

AT&T currently offers Virtual Private Network and other value-added data services to multinational corporations that have locations in Indonesia working with existing locally licensed Indonesian service providers. With the new MSO license, AT&T Indonesia will directly provide global managed network services and business applications.

“This underscores our strategy of being a trail-blazer in entering new and emerging markets to support our global MNC customers wherever their business takes them”, said Choo Hock Lye, general manager of AT&T ASEAN. “Many of our key multinational customers have told us they need to be in Indonesia, and while AT&T has been operating a successful business here, the new license will allow us to deliver an array of new services and make it much easier for us to do business with multinational customers.”

Through the new license, and related government approvals, AT&T Indonesia is planning to introduce several enhancements to its service portfolio including managed LAN, managed IP services and managed application services.

AT&T has invested more than US$4 billion since 2006 in business-focused international network, systems and applications to provide a globally consistent set of robust and highly-secure services to the business customers it serves worldwide. AT&T’s network covers 99 percent of the world’s economy, providing IP-based services to 182 countries over 3,800 service nodes.