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)