Telecom operators may raise tariffs due to currency woes<\/p>\n
JAKARTA (JP): The ongoing currency turmoil may force
\ntelecommunications operators to increase tariffs, executives said
\nhere yesterday.<\/p>\n
President of cellular operator PT Telkomsel, Koesmarihati
\nSoegondo, said that she would accept any measures to increase
\ncellular phone tariffs.<\/p>\n
\"The current Rp 270 per minute of air-time in Indonesia is the
\ncheapest cellular rate in the world. The new rate will be
\ndiscussed among the cellular operators to be proposed to the
\ngovernment,\" she said.<\/p>\n
There are now seven cellular service providers operating three
\ndifferent systems in Indonesia.<\/p>\n
The companies held a meeting Tuesday which also discussed new
\ntariff arrangements.<\/p>\n
State-owned domestic telecommunications provider PT Telkom
\nearlier proposed a 2.64-percent rate increase.<\/p>\n
But Telkom's president Asman A. Nasution denied this
\nyesterday.<\/p>\n
\"What do you think is the best thing for a situation like now?
\nIt's the government's decision to adjust the tariffs,\" he said.<\/p>\n
Sources at Telkom said yesterday that the company had met with
\nthe country's Association of Indonesian Electric Cables Producers
\nto discuss how to overcome the rupiah upheaval which would
\nincrease prices and the rate of telephone investment per line.<\/p>\n
Secretary-general of the Ministry of Tourism, Post and
\nTelecommunications, Jonathan L. Parapak, has said that the
\ngovernment is committed to adjusting telecommunications tariffs
\nannually.<\/p>\n
\"Just wait and see, there will be adjustments. But it's too
\nearly to talk about it now,\" he said over the weekend.<\/p>\n
Nasution admitted Telkom would be very cautious with its
\nbudget in ongoing operations and future telecommunications
\ndevelopments.<\/p>\n
The government has set a new target of telecommunications
\nnetwork development to have more telephones per capita.<\/p>\n
Last year the government announced that it would install more
\ntelephone lines than originally planned for the ongoing Sixth
\nFive-Year Development Plan period to end in March 1999.<\/p>\n
Its previous target for new telephone lines has risen 60
\npercent from five million to eight million.<\/p>\n
The new target is 6.7 million fixed-telephone lines and a
\nnetwork capacity for 1.3 million mobile telephones.<\/p>\n
\"We will use our own capital in the development program
\ninstead of using the remaining loans extended by overseas banks,\"
\nNasution said, adding that Telkom's long-term foreign debts had
\nreached Rp 1.6 trillion.<\/p>\n
A top executive of telecommunications company PT Telekomindo,
\nRudiantara, said that the utilization of foreign exchange in
\ntelecommunications business was still high because 80 percent of
\nthe industry's equipment was imported.<\/p>\n
\"Both cellular and fixed-line telephone companies have loans
\nin foreign currencies, the difference is just in the interest
\nrates,\" he said.<\/p>\n
He said he believed that the companies would be able to manage
\nall possible problems so as to avoid disadvantaging the public.<\/p>\n
Five private firms which develop telecommunications networks
\nin cooperation with Telkom, and a number of cellular operators
\nhave won loans of hundreds of millions of dollars to develop
\ntelecommunications infrastructure.<\/p>\n
Currency turmoil may affect their ability to pay back the
\noverseas loans.<\/p>\n
There's no estimate of possible increases in per line costs
\nfor fixed line (between $800 and $1,000) and cellular (about $900
\nto $1,300) services.<\/p>\n
Rudiantara said that the price of some cellular phones had
\ngone up, and some brands had even disappeared from the market.<\/p>\n
\"This does not relate to cellular operators but to the handset
\nsales agents or cellular providers' dealers,\" he said. (icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/telecom-operators-may-raise-tariffs-due-to-currency-woes-1447893297",
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