ATSI urges govt to regulate Telkom's new service

Evi Mariani The Jakarta Post Jakarta

PT Telekomunikasi Indonesia's (Telkom) new fixed-wireless service, TelkomFlexi, which has features similar to those offered on mobile phones, has sparked protests from cellular phone providers who fear that TelkomFlexi will cut into their share of the market.

Indonesian Cellular Phone Provider Association (ATSI) chairman Rudiantara told The Jakarta Post on Tuesday that the government should keep the TelkomFlexi service fixed, so that it would not interfere with the mobile phone market share.

"If it is a fixed service, it should not offer mobile services," he said.

In May, Telkom introduced TelkomFlexi, which is actually a fixed-wireless service using the latest technology, Code Division Multiple Access (CDMA).

However, by using the service, customers can carry their fixed-line phones outside their homes as long as they are still within reach of a base transreceiver station (BTS). One station has a radius of more or less five kilometers.

To sign up for the service, customers pay Rp 150,000. TelkomFlexi offers the same rates as those for fixed-line calls, which are cheaper than calls made on a cell phone.

For an extra Rp 50 per minute, customers can move to an area covered by another BTS, so that they can communicate within a wider area.

Telkom vice president for corporate communication Eddy Praptono said for Jakarta customers TelkomFlexi service could reach the whole city for the time being.

"We plan to widen the reach to greater Jakarta," he told the Post.

Besides the mobility feature, TelkomFlexi also has other features like short messaging services (SMS) and a relatively fast Internet access of 144 kilobytes per second.

These mobile features offering fixed costs provided by TelkomFlexi have raised concerns from mobile phone providers, as they fear it will cut into their share of the market.

Rudiantara said that fixed-wireless services, such as TelkomFlexi could offer cheaper rates because its provider pays for a cheaper license from the government.

"For example, a mobile service provider like us, members of ATSI, has to pay about Rp 18 million (about US$2,195) for installing a relay station," he said. "That is 20 times higher than the cost for installing a fixed service station."

He added that if the government implemented a clear regulation on the new service, mobile phone providers would not feel threatened.

He said that ATSI had voiced its concerns to government officials last week.

"It's OK for us if the government restricts the TelkomFlexi service to those of fixed lines, as we will have our own market share," he said. "But if the regulator lets the service go beyond a fixed service, we will object, as TelkomFlexi might take a portion of the mobile market share."

I Ketut Prihadi, the spokesperson for the Directorate General for Post and Telecommunications at the Ministry of Communications said that his ministry was currently discussing a regulation that would be acceptable to every player in the telecommunications business.

Rudiantara said that mobile market shares grow by four million to five million a year.

Meanwhile, TelkomFlexi management has reportedly projected its market share to grow by one million a year.

"If a fair regulation is not implemented, TelkomFlexi's market shares will fully intersect with the mobile service's," he added.

TelkomFlexi info

1. Current customers of Telkom fixed-line services cannot switch to TelkomFlexi as it is a separate service. Those who are not Telkom fixed-line customers can buy TelkomFlexi. New installment fee : Rp 150,000 Monthly fee : Rp 46,100

2. Telephone station : Using a specially-designed handset for TelkomFlexi, available in any phone dealers at prices between Rp 1.3 million and Rp 3 million. Tariffs : same as fixed line tariffs

(SMS costs Rp225 per message)

3. Features : SMS, internet access of 144 kbps, call forwarding, call waiting, calling line identification presentation and restriction, three-way calling, voice mail, activation schedule profile.

4. Network range : 5 kilometers for one BTS, movable to another BTS, in Jakarta reaching up to the whole province. This might change as the telecommunications regulator is discussing a regulation on fixed-wireless access service.

5. Service locations : Jakarta, Balikpapan, Batam, Surabaya, Denpasar, Makassar.