Telkom to cut cost on new codes<\/p>\n
Tony Hotland, Jakarta<\/p>\n
PT Telekomunikasi Indonesia (Telkom) is meeting with government
\nofficials to discuss how to minimize the costs of changing the
\nregional phone codes.<\/p>\n
Telkom president Kristiono said the government funds earmarked
\nfor the change were inadequate and the company would have to
\nrenew its infrastructure to support the new coding system.<\/p>\n
The government is to pay compensation fees to Telkom and PT
\nIndosat following its implementation of a duopoly policy on the
\ntelecommunications sector, which ends Telkom's monopoly over
\ndomestic telecommunications service and Indosat's international
\ncall service.<\/p>\n
Telkom will get Rp 478 billion (US$53.34 million) for the
\ntermination of its local and long distance call rights, and
\nIndosat will get Rp 178 billion for its international calls.<\/p>\n
The government is expected to pay the fees next year.<\/p>\n
However, Kristiono said the real cost of the change was far
\nlarger than the compensation fee.<\/p>\n
Telkom has estimated the total cost of implementing the new
\ncodes would reach about Rp 3.22 trillion.<\/p>\n
Kristiono said Telkom would have to upgrade old computers and
\nrevamp phone centers in many areas to make them compatible with
\nthe new codes.<\/p>\n
\"Who will pay for the (funding) gap? The compensation fee
\nshould cover all the expenses which will be incurred,\" Kristiono
\nsaid.<\/p>\n
An alternative, which would keep costs down, would be to keep
\nthe 0 proceeding the current area numbers, he said. He did not
\nsay how much money could be saved.<\/p>\n
Under the new system, the area code for Telkom's subscribers
\nwill become 017 and Indosat's will be 011. These codes will
\nreplace the 0 that proceeds the area numbers under the existing
\nsystem. For example, the 0 in 021 for the Jakarta area code will
\nbe 017 or 011, and then followed by 21.<\/p>\n
Instituted on April 1, the new policy is expected to be in
\nfull operation by April 1 next year.<\/p>\n
However, Indonesian Communication Regulatory Body (BRTI)
\nmember Hery Nugroho said the compensation fee could not be
\nrevised. It was calculated through a long process of appraisal
\nand due diligence and had been approved by the House of
\nRepresentatives, he said.<\/p>\n
\"It should have been Telkom's duty to regularly renew its
\ninfrastructure. Much of it is out of date and should have been
\nupgraded after the old equipment reached its use-by date,\" he
\ntold The Jakarta Post.<\/p>\n
Hery said the BRTI was examining Telkom's Rp 3.22 trillion
\ncost estimate for the new codes.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/telkom-to-cut-cost-on-new-codes-1447893297",
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"sponsor": "Okusi Associates",
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