KPPU urges govt to take over Telkom's network<\/p>\n
Rendi A. Witular, Jakarta<\/p>\n
The Business Competition Supervisory Agency (KPPU), a monopoly
\nwatchdog, urged the government to take over the domestic
\ntelecommunications network backbone from state-owned telecom
\ncompany PT Telkom to help ensure fair business practices in the
\nsector.<\/p>\n
KPPU member Faisal Basri said on Monday that the takeover of
\nthe facility by the government would help ensure that other
\ntelecom players get equal treatment and opportunity in using the
\nnetwork.<\/p>\n
"With the network still in the hands of Telkom, it is hard to
\nexpect fair competition among the industry players. Fair
\ncompetition involving more players will lead to lower telephone
\nrates for the public," said Faisal in a press briefing.<\/p>\n
The government has liberalized the country's
\ntelecommunications industry, with the hope that the public,
\nespecially those living in remote areas, will be able to gain
\neasier access to telephone services at a lower rate.<\/p>\n
However, problems linger including the control of the network
\nbackbone by Telkom, a situation that has discouraged new players
\nfrom entering the domestic telecommunications industry as Telkom
\ncould easily adopt a discriminatory strategy in the use of the
\nnetwork.<\/p>\n
"Telkom has failed to make a major move in expanding the
\ncountry's fixed-line telephone network despite all the privileges
\nthe firm enjoys from the government," said Faisal.<\/p>\n
The KPPU suggested the government create a non-profit firm
\nwith the task of independently managing the network backbone for
\nall telecommunication operators.<\/p>\n
The funding for the company's operation could be financed from
\ninterconnection fees it collected from the operators, Faisal
\nsaid.<\/p>\n
"It would be better for Telkom to deal with telecommunication
\nservices rather than the network, so that it will not be burdened
\nby government requirements in setting up the network and fixed-
\nline access for the entire region," he said.<\/p>\n
Currently, the country's density for telecom fixed-line access
\nremains low, as only about 9.5 million of the country's 215-
\nmillion population have access to fixed-line telephones,
\nincluding fixed-line and fixed wireless phones, with Telkom
\naccounting for 9.3 million of the total.<\/p>\n
The government has urged local phone operators to build 10.7
\nmillion fixed telephone lines by the end of 2008. This year
\nalone, the operators are obliged to build at least 1.4 million
\nlines.<\/p>\n
Another member of the KPPU, Muhammad Iqbal, said that the low
\ndensity of telephone access could be detrimental to the country's
\ndefense system in case of war.<\/p>\n
"We cannot depend on the cellular network, it is too fragile.
\nWe need a broad fixed-line network, which is more durable, to
\nsecure our telecommunication lines in case of war," said Iqbal.<\/p>\n
He said that the KPPU would submit its study on the unfair
\npractices and problems in the country's telecommunications
\nindustry to the new government, as well as the new members of the
\nHouse of Representatives, so that they could address the
\nproblems.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kppu-urges-govt-to-take-over-telkoms-network-1447893297",
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"sponsor": "Okusi Associates",
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