Telecoms union prepares new cellular phone tariffs<\/p>\n
JAKARTA (JP): The Indonesian Association of Telecommunications
\nCompanies are preparing more-reasonable tariffs for cellular
\ntelephones in an attempt to attract more subscribers.<\/p>\n
\"A team of executives of the association, which is supported
\nby the Indonesian Telecommunications Society, are still
\ndiscussing the arrangement, which will be submitted to the
\ngovernment by the end of this year,\" association chairman
\nRahardjo Tjakranigrat announced after attending a hearing with
\nmembers of the House of Representatives yesterday.<\/p>\n
He said cellular telecommunications tariffs should be lower
\nthan current government-set levels.<\/p>\n
\"If the tariffs are lowered, more people will subscribe to the
\nfacility, meaning more telecommunications traffic will be
\nperformed,\" Rahardjo reasoned.<\/p>\n
Cellular telephone utilization in Indonesia increased
\nsignificantly after the government lifted its 25 percent import
\nduty on handsets last October.<\/p>\n
The decision was taken after handset prices were proven to be
\nsteadily declining in the global market. Handsets are far more
\nexpensive in Indonesia than in other countries.<\/p>\n
National telecommunications law still recognizes the
\ngovernment as the sole beneficiary of both telephone call tariffs
\nand installation fees.<\/p>\n
\"Government regulations are vital but the restructuring of
\ntariff arrangements for cellular telephone calls is necessary,\"
\nRahardjo said.<\/p>\n
Cellular telephone calls are normally charged on the basis of
\nairtime, but subscribers in Indonesia are required to pay more
\nwhen phoning across zones and when using public telephone
\nswitching networks.<\/p>\n
Installation fees<\/p>\n
The association also proposed that the House of
\nRepresentatives urge the government to erase installation fees.<\/p>\n
Secretary-general of the Ministry of Tourism, Post and
\nTelecommunications, Jonathan L. Parapak, said recently that the
\ngovernment is still comparing several tariff arrangements adopted
\nby various foreign operators.<\/p>\n
The number of cellular telephone subscribers in Indonesia is
\nexpected to increase from 200,000 at present to 600,000 by March
\n1999, and to one million by the end of the decade.<\/p>\n
\"If 1 percent of the 200 million people in the country
\nsubscribe, investors may consider establishing a cellular
\ntelephone manufacturing plant in Indonesia,\" Rahardjo
\nconjectured.<\/p>\n
Last year the government lowered the installation charge from
\none million to 300,000 rupiah a line to promote the use of mobile
\ntelephones.<\/p>\n
The government has licensed seven cellular telecommunications
\noperators: PT Satelindo, PT Telkomsel, PT Excelcomindo, PT
\nMobilsel, PT Metrosel, PT Telekomindo and PT Komselindo. (icn)<\/p>",
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"sponsor": "Okusi Associates",
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