Chances slimmer to get fixed line service<\/p>\n
Tony Hotland, The Jakarta Post, Jakarta<\/p>\n
Chances are getting slimmer for more members of the public to
\ngain access to fixed-line telephone services as the existing
\noperators remain reluctant to invest in the sector, a senior
\nofficial of the Indonesian Chamber of Commerce and Industry
\n(Kadin) said on Wednesday.<\/p>\n
Kadin's telecommunications committee head Anindya N. Bakrie
\nsaid the existing telecom operators would rather invest in the
\ncellular sector than in the fixed-line sector because the latter
\ncost them less, while promising higher returns.<\/p>\n
\"The cost of building fixed wireline infrastructure is eight
\nto 10 times more than that of cellular or fixed wireless service.
\nMeanwhile, the return on investment (from the fixed-line
\nbusiness) is not guaranteed,\" he said.<\/p>\n
At present, only around 8.5 million people out of 220 million
\n(about 3.9 percent) in Indonesia have access to fixed-line
\nphones, mostly in urban areas.<\/p>\n
Therefore, Anindya said one of the recommendations proposed in
\nthe road map to be submitted by Kadin to the new government was
\nthat the government should allow as many qualified operators to
\ncompete in the sector as was practical.<\/p>\n
\"The government must pave the way for all qualified and
\ndetermined operators to enter the sector. Such a situation is
\nbetter as consumers will eventually have more choices,\" said
\nAnindya, who is also the president of PT Bakrie Telecom.<\/p>\n
However, he was unable to specify the ideal number of
\ntelephone operators, saying that it should be left to the market
\nforces.<\/p>\n
\"After opening the sector, the government must assure a 'level
\nplaying field' in order to attract new investors,\" he added.<\/p>\n
Currently, only PT Telkom and PT Indosat are allowed to offer
\nlocal, long-distance and international call services.<\/p>\n
The government is trying to install new fixed lines in the
\nrural areas under the Universal Service Obligations (USO) scheme,
\nwhere one line is expected to serve one village.<\/p>\n
However, the project's progress remains sluggish and its
\nmaintenance is questionable due to the very limited fund
\nallocated in the state budget.<\/p>\n
In order to boost funds for the project, the government has
\nasked telecom operators to contribute to the USO project. The
\nexisting operators have agreed to allocate 0.75 percent of their
\nannual revenue to help finance the project.<\/p>\n
Despite the rapid growth of the cellular industry, analysts
\nsay Indonesia should continue developing its fixed-line network
\nas it is much more reliable than cellular services. Cellular
\nservices are more prone to trouble or sabotage, compared to fixed
\nlines.<\/p>\n
Elsewhere, Anindya said that in its road map to be presented
\nto the next government, Kadin also recommended the creation of a
\n\"one-stop shop\" to ease coordination among regulators in the
\ntelecommunication sector.<\/p>\n
\"It'd be more convenient for operators and other stakeholders
\nif the Ministry of Information and Communications, the BRTI (the
\nIndonesian Telecommunications Regulatory Body), and the
\nDirectorate General of Post and Telecommunications at the
\nMinistry of Communications were under one roof,\" he said.<\/p>",
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"sponsor": "Okusi Associates",
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