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Microcap & Penny Stocks : DGIV-A-HOLICS...FAMILY CHIT CHAT ONLY!! -- Ignore unavailable to you. Want to Upgrade?

To: canon ball who wrote (32359)	12/3/1998 8:45:00 PM
From: Major Tom	Respond to of 50264

Gosh, finally something happened, I was starting to have my doubts. Major Tom

To: canon ball who wrote (32359)	12/3/1998 8:47:00 PM
From: SalmonMan	Read Replies (1) \| Respond to of 50264

Crew, FYI....just to keep our eyes on the ball...... ----------------------------------- /////////////////////////////////// ----------------------------------- Indonesia to Raise Top International Call Price by 50% By Alistair Hammond at Bloomberg News 18 November 1998 Indonesia has approved an increase in international call rates to help offset the decline in the rupiah, said international phone company PT Indosat. While most countries are seeing small increases or none, calls to most important destinations - such as Hong Kong, Singapore, and the United States - will become about 50% more expensive. "Obviously the impact on earnings is pretty material," said Neil Juggins, regional telecommunications analyst at Paribas Securities in Singapore. "To the extent that the scale of the increase is pretty much what they'd been asking for, it's not a surprise." Coming only a few weeks after the company told analysts and investors that no such increase was imminent, the timing is a surprise, though. "The basic reason for these tariff adjustments was to improve the country's telecommunications industry which has been negatively influenced due to the high depreciation of the rupiah," Indosat said in a release, adding that the tariff increase will take effect November 25. The rupiah has tumbled as much as 80% against the U.S. dollar in the last year, which has made the cost of outgoing calls from Indonesia cheaper in foreign currency terms. Indosat, which is controlled by the government, has been lobbying for an increase to prevent rising traffic of outgoing calls from exceeding that coming in. If a call linking Indonesia and a foreign party costs less when it's initiated in Indonesia, more people will prefer to call out from Indonesia than call in. That creates an imbalance, and a net outflow of dollars from Indonesia, which hammers Indosat's profits. Hence the increase. Indosat pays foreign telecommunications companies in dollars for completing calls originating in Indonesia, and receives dollars for completing calls originating abroad. For telephone services, 55 countries will see an increase of between 4% and 34%, and tariffs to 29 other countries will be raised by about 50%. The rest will be unaffected. Telex rates are to rise by a flat 25% across the board. In the final analysis, it's hard to determine the impact of the tariff increases, because the rupiah's movements can make a nonsense of forecasts in the space of an afternoon, analysts said. The government plans to sell a 14% stake in Indosat this fiscal year as part of its $1.5 billion privatization drive. Raising rates is one of the options minister for state enterprises Tanri Abeng said the government was considering to make Indosat more attractive to investors. The company's shares rose 75 rupiah to close at 9,975. More than 1.2 million shares changed hands, compared with the stock's six-month average full-day trading of 671,000.