Cellphone operators increase rates

The Jakarta Post, Jakarta

Several cellular phone operators in the country have increased their charges following the increase in the fixed telephone rate, even though the government has yet to issue a decree permitting them to carry out such a move.

PT Satellite Palapa Indonesia (Satelindo) and PT Indosat MultiMedia Mobile (Indosat-M3) confirmed to The Jakarta Post on Wednesday that they had increased their charges for post-paid cellular services beginning this month and were considering raising the rate for the pre-paid phone service.

PT Telkomsel, the country's largest cellular phone operator, has also planned to raise its rate for both post-paid and pre- paid services starting next month.

"We are not actually raising the rates, just adjusting them (to the increase in the fixed phone rates)," said Satelindo's general manager for technical administration, Sulistyowati.

The operators said, following the increase in fixed phone line rates, they now have to pay higher fees to state telecom company PT Telkom for the use of the Public Switching Telephone Network (PSTN). The cellphone operators use the facility when their subscribers are connected with a fixed line telephone.

Telkom raised its charges last month following approval from the government.

Spokesman of the Directorate General of Post and Telecommunications at the Ministry of Transportation Gatot S. Dewa Broto insisted that under the existing regulations, cellphone operators were not allowed to raise their rates without government approval.

"No rate hike is allowed without a ministerial decree," Gatot said.

He admitted, however, that the ministry would soon issue a decree on the increase in cellphone rates.

According to him, the directorate general of post and telecommunications had sent a letter to nine cellphone operators warning them not to introduce their new rates before the decree was issued.

"We understand that cellular operators have been burdened by higher costs. But since this concerns the public interest, they have to follow government rules," Gatot said.