Cell phone operators warned of possible class action
Cell phone operators warned of possible class action
JAKARTA (JP): The Indonesian Consumers Protection Foundation
(YLKI) has warned cellular telephone operators that they could
face a direct or class action if they ignored complaints from the
public.
Deputy chairman of YLKI, Agus Pambagio, said on Thursday the
introduction of the law on consumer protection enabled the public
to file a direct or class action against providers of products or
services.
Under the new law, consumers may file a lawsuit if they
believe a company's products or services do not match
advertisement promises, he said.
According to the new consumer protection law, which will come
into effect in April next year, a company is obliged to provide
detailed and true information on the specification, benefit and
maintenance of all products and services. Additionally, companies
are obliged to treat all customers indiscriminately, provide
customers with the opportunity to check or test the product prior
to any transaction, provide guarantees for all products and
compensate customers who suffer or do not benefit from the
products.
Failure to comply with the regulations could lead to a jail
term of up to five years or a maximum fine of Rp 2 billion.
According to YLKI, the country's cellular providers were at
the receiving end of many complaints from the public.
Agus said the majority of cellular users lodged complaints
about the poor quality of their prepaid refill service and the
frequency of blank spots.
"Unfortunately, most of the cellular operators lack customer
service support to respond appropriately to the complaints," he
said.
He also warned operators to be more careful, particularly when
advertising the specifications and benefits of their products and
services.
"For example, if an operator says it is capable of providing
nationwide coverage, it means its service covers all cities and
remote areas in the country's 27 provinces."
Agus said another significant issue in the cellular industry
that needed more attention was the pricing structure.
"Please, be more rational and transparent in setting the
tariff, especially when raising the tariff. Don't set the tariff
just the way you want it."
All of the fees charged to customers, including the initial
installment fee, monthly membership fee and utility fees such as
call cost, airtime, roaming zone and features costs, are
currently controlled by the government, which decides the maximum
price cap.
Many cellular telephone operators, however, do not announce a
raise in tariffs to the public, he said.
There are currently seven cellular phone network providers in
the country, serving three systems: the Advanced Mobile Phone
System (AMPS), the Global System for Mobile Communications (GSM)
and the Nordic Mobile Telephone (NMT) system.
They serve approximately 1.3 million active cellular phone
users. The cellular industry projects the number will grow to
about 2 million by the end of the year, yielding some Rp 2.2
trillion in revenue. (cst)