Cellular phone airtime rates raised by 23 percent

Cellular phone airtime rates raised by 23 percent

JAKARTA (JP): After more than two months of opposition, the
government and House of Representatives have agreed to raise
airtime rates for regular cellular phone services by 23 percent
from the current Rp 325 per minute to Rp 400.

Chairman of House Commission IV for telecommunications and
transportation, Burhanuddin Napitupulu, said on Tuesday that the
Ministry of Communications was expected to issue a decree to
authorize the rate increase by the end of this month.

"The new rate is expected to become effective in early
October," he said, adding that the agreement was reached during a
meeting on Monday.

He said the government previously proposed a 30 percent
increase, while the commission only agreed to let operators raise
the rate by 15 percent.

Burhan said the agreement on the 23 percent raise was reached
after both sides recalculated and reassessed the situation
currently facing cellular operators and customers.

The rate for regular cellular telephone services is set by the
government based on proposals from telephone operators, but the
change is subject to House approval.

Cellular operators are free to set their own airtime rate for
prepaid billing services. The government allows operators to
raise the rate for the prepaid service up to 140 percent higher
than the rate regulated for the regular postpaid billing service.

GSM operators Telkomsel and Satelindo are planning to raise
the airtime rates for their prepaid services.

President of GSM cellular operator Telkomsel confirmed his
company's plan to raise the rate for its prepaid service Simpati.

However, he did not reveal the percentage of the increase or
when it would be applied. "It's still under discussion," he said.

An industry source said Satelindo would likely raise the
airtime rate for its Mentari prepaid service by an average of 15
percent.

The other GSM operator, Excelcomindo, raised the rate for its
Pro-XL prepaid service by 15 percent to 20 percent on Sept. 1.

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 over 1.6
million subscribers. (cst)