Government liberalizes telecoms sector<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
State-owned international telecommunications provider PT Indosat
\nwill be allowed to start up local call services as of Thursday,
\nmarking a change for the country's fixed-line telecommunications
\nsector from a monopolistic structure to one based on competition.<\/p>\n
But Coordinating Minister for the Economy Dorodjatun Kuntjoro-
\nJakti said during a press conference on Wednesday that Indosat's
\nlocal call business for the time being would be limited to
\nJakarta and Surabaya.<\/p>\n
The move is part of the government's deregulation policy in
\nthe fixed-line telecommunications sector. For many years, both
\nlocal and long-distance domestic services have been subject to a
\nmonopoly enjoyed by state-owned PT Telkom, while international
\ncalls have been the exclusive preserve of Indosat.<\/p>\n
Under the plan, Telkom will be allowed to enter the
\ninternational call business in August of next year.
\nSimultaneously, Indosat will be allowed to start operating long
\ndistance call services.<\/p>\n
Dorodjatun said that a special independent team had been
\nassigned to complete the technical details of the new policy,
\nincluding settling the vexed question of compensation packages
\nfor both Telkom and Indosat for losing their exclusive rights.<\/p>\n
He said that a final decision was expected in November, after
\nwhich Indosat would be allowed to fully operate its local call
\nservices.<\/p>\n
The government is also set to appoint a team to draft the
\nnecessary regulations and to oversee the new structure in the
\nfixed-line telecoms industry.<\/p>\n
Indosat is apparently ready for the local call business as it
\nhas already hooked up 8,000 and 5,000 local fixed telephone lines
\nin Jakarta and Surabaya respectively.<\/p>\n
The government expects the liberalization move would benefit
\nconsumers as competition would result in better service and
\ncheaper phone tariff. But analysts doubted this, saying that in
\nthe near term, Indosat's entry into the local call service would
\nmainly cater demand which had not been fufilled by Telkom.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-liberalizes-telecoms-sector-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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