BRTI seeks to up Flexi's frequency fees

BRTI seeks to up Flexi's frequency fees

Dewi Santoso, The Jakarta Post, Jakarta

The Indonesian Telecommunications Regulatory Body (BRTI) is
urging the Ministry of Communication to increase Telkom Flexi's
frequency fees amid protests from other cellular providers who
cannot compete with Flexi, which offers its fee 20 times lower.

"We are currently working on a formula that will differentiate
between Flexi's totally fixed stations and mobile stations. Once
it is finished, we'll propose an increase in the frequency fees
for Flexi's mobile stations," BRTI member Hery Nugroho said on
Friday.

He said it could be finished by next month, "We still need to
calculate the planned amount of the increase. For sure, it'll be
higher than the current one, but lower than that of other
cellular operators."

Telkom Flexi, a product of state-owned telecommunications firm
PT Telekomunikasi Indonesia (Telkom), is a cellular service that
uses fixed wireless with code division multiple access (CDMA)
technology.

According to the Indonesian Cellular Telephone Association
(ATSI), Flexi has to pay an annual frequency fee of only Rp
900,000 (US$105.88) per trunked radio unit (TRU), whereas private
cellular operators have to pay an annual fee of Rp 18 million per
TRU.

A TRU is a communication path between two or more points,
typically between the telephone company's central office and one
or more users. One TRU can usually cover 12 users.

Unlike other countries where frequency fees are based on the
amount of frequency used, in Indonesia, frequency fees are based
on the amount of TRU.

Data from the ATSI shows that frequency fees from cellular
operators other than Telkom Flexi contributed around Rp 700
billion to the country's non-tax revenue last year. No official
data was made available for Telkom Flexi.

ATSI secretary general Rudiantara said that the huge disparity
between Telkom Flexi's frequency fees and other cellular
operators' was "unfair".

"Telkom Flexi's license is for fixed-line services, which
allows it to pay lower frequency fees. Yet, the technology that
it uses is mobile. That's unfair," said Rudiantara.

Thus, he demanded that the government be fair and lower the
frequency fees for cellular operators other than Telkom Flexi to
balance the disparity.

He did not, however, mention the amount that the government
should lower it, saying, "It still needs to be calculated."

Rudiantara added that the government should also determine
which service category Telkom Flexi should fall into.

"If the government considers it (Telkom Flexi) a fixed-line
service, then it should not give Telkom Flexi the privilege to
have mobile technology. If Telkom Flexi is considered as mobile
or limited-mobile service, then it should possess a license of
the same kind," he said.

Telkom spokesman Mundarwiarso refused to comment, saying only:
"Let's leave it to the BRTI to decide. We'll discuss the decision
after it comes out."