Govt asked to ease its control over VoIP services<\/p>\n
Sudibyo M. Wiradji, The Jakarta Post, Jakarta<\/p>\n
The Voice over Internet Protocol (VoIP) is a promising
\nalternative call service but it will take sometime before it
\ngains wide acceptance in Indonesia.<\/p>\n
Government policy on VoIP has frequently been cited as
\nhampering the rapid growth of IP-based telecommunication at least
\nwhen it comes to the alternative cheaper call service because
\nlong established telecommunication companies such as PT Telkom
\nand PT Indosat do not seem agreeable to seeing its customers
\nturning to VoIP service operated by other companies.<\/p>\n
Even though the government recently announced its decision to
\naward two more VoIP operation licenses, the move has yet provided
\nenough evidence on its willingness to create a sound and fair
\nVoIP business.<\/p>\n
The government has reportedly awarded a principle license to
\nPT Excelcomindo Pratama, the country's third largest cellular
\ncompany, for having a large network and customer base. Another
\nlicense is expected to go to a consortium representing 12
\noperators for having protocol talk, a platform determining the
\nformat and transmission of data or voice.<\/p>\n
With two more licenses, there will be seven companies allowed
\nto operate VoIP. PT Telkom, PT Indosat, PT Satellite, PT Atlasat
\nSolusindo and PT Gaharu Sejahtera received the operation licenses
\nearlier.<\/p>\n
Experts, however, said that to create a more sound and fair
\nVoIP business environment, the government should relax its tight
\npolicy on VoIP concerns by allowing more companies to operate
\nVoIP service. \"I think, the government should give the
\nopportunity to as many operators as possible to register with the
\ngovernment (Directorate General of Post and Telecommunication)
\nconsidering the big market potential,\" multimedia analyst Roy
\nSuryo told The Jakarta Post recently.<\/p>\n
The registered and eligible operators should be certified, he
\nsaid. \"Like in the pharmaceutical world, any pharmaceutical
\ncompany wishing to sell its products is obliged to register with
\nthe Ministry of Health,\" he said. Thus, the government has the
\nbasis for taking measures against operators that are not
\nregistered with the Directorate General of Post and
\nTelecommunication.<\/p>\n
Conventionally, communication by telephone is sent through
\nseveral switch circuits in which each telephone connection
\nrequires one dedicated channel. However, a telephone conversation
\nvia Internet network or VoIP operates by converting the voices
\ninto digital collections called packets that are sent through
\nInternet network available. The signals sent in digital packets
\nare then converted back into voices.<\/p>\n
The cost of VoIP service is much cheaper compared to direct
\ntalk service because the cost is calculated based on the local
\nInternet network, according to Roy. While, Telkom sets high
\nprices for its call services because the government has spent
\nhuge funds on building telecommunication infrastructure and
\nnetworks.<\/p>\n
The VoIP business started to flourish in 1997 when many
\ncompanies raced to offer the IP-based service as an alternative
\ncall service. The VoIP service gained popularity within a very
\nshort time because it offers relatively cheaper rates compared to
\ndirect call service despite the questionable voice quality.<\/p>\n
It will cost one around Rp 500 per minute to talk with a
\nfriend in another city via VoIP compared to around Rp 1,400 per
\nminute when talking via direct telephony.<\/p>\n
The lucrative VoIP business had contributed to the mushrooming
\nof operators offering VoIP service, with around 50 operators on
\nthe list of the Indonesian Association for Internet Service
\nProviders (APJII).<\/p>\n
According to Roy, the sharp drop in requests for international
\ncalls via international call channel (SLI) or direct telephony
\nwas a logical consequence of the irreversible technological
\nadvances in light of the fact that the rapid development of
\ninformation technology in the telecommunication industry cannot
\nbe controlled by regulation and besides, more consumers are in
\nneed of cheaper call services.<\/p>\n
Roy said that with the increasing number of consumers wishing
\nto have cheaper call service, it was high time for the government
\nto explicitly and transparently announce to the public about the
\ntwo call services -- direct call telephony and Internet
\ntelephony. This will allow them to make their own choices,
\nwhether they want direct telephony at more expensive rates or
\nInternet telephony at cheaper rates. \"In this way, consumers
\nwon't keep wondering why the quality of the voice is low,\" he
\nsaid.<\/p>\n
By comparison, telephone users in the United States are fully
\naware of the direct telephony and Internet telephony services
\nbecause the administration had explained the services
\ntransparently, he said.<\/p>\n
Technologically speaking, the VoIP case also reflects the
\nimportant role Research and Development (R&D) plays in any
\nindustry. \"It is high time for Telkom not to rely on monopolistic
\npractices to control the market but instead improve its R&D so
\nthat with creativity and innovation, it can catch up with the
\nchanging technology,\" he said.<\/p>\n
Secretary-general of APJII Heru Nugroho shared Roy's view,
\nsaying that controlling the number of VoIP operators was not an
\neffective means of terminating the illegal operation of VoIP
\nservices. \"Since the government's move to conduct raids on
\noperators, many still operate illegally and the number has even
\nincreased,\" he said.<\/p>\n
The VoIP issue has drawn the attention of high-ranking
\nofficials, including members of the House of Representatives.<\/p>\n
In response to criticism that VoIP would pose a threat to PT
\nTelkom in terms of revenue, Internet expert Onno Purbo claimed
\nthat the VoIP would benefit the state. \"In addition to tax that
\nthey (operators) have to pay to the government, they are also
\nobliged to pay other fees such as the leasing fee for 30 voice
\ncanals (E1) to PT Telkom for outgoing calls and
\ninterconnectivity,\" he told Kompas daily recently.<\/p>\n
A series of steps has been taken by the government to curb the
\nrapid growth of VoIP business.<\/p>\n
The government conducted massive raids on VoIP operators in
\n2001 when the number of VoIP users showed an upward trend.<\/p>\n
The government's move to close VoIP operators was then
\nfollowed by the issuance of Decree No. 159\/ 2001, which drew
\nstrong protests from various circles because two operators PT
\nAtlasat Solusindo and PT Gaharu Sejahtera that had no experience
\nin the telecommunication industry were among those who were given
\noperating licenses.<\/p>\n
And under the government's regulation, operators that use
\nprotocol talk are required to cooperate with one of the appointed
\noperators. This is the reason why 12 operators, including
\nCentrin, D-Net, Info Asia, Melsanet, Estiko, Primanet, Telesindo,
\nPacific Link and Central Online, under the name Group 12 continue
\nto struggle to gain a license.<\/p>\n
Despite its great potential, VoIP has been treated by the
\ngovernment like a stepchild. \"As long as the government continues
\nto intervene in VoIP business, the sound telecommunication
\nindustry remains in question. This means it might take some time
\nbefore consumers can avail of relatively cheap telephone
\nservices,\" said another expert, who wished to remain anonymous.<\/p>",
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