Government to introduce new telephone charges

Government to introduce new telephone charges

JAKARTA (JP): The government will introduce new tariff
arrangements for long distance telephone calls and installation
and will provide incentives for new subscribers throughout the
country, Minister of Tourism, Post and Telecommunications Joop
Ave said yesterday.

"The new tariff structure for long distance calls will be
based on three zones instead of the five zones currently applied
by Telkom," Joop said in a hearing with the House of
Representatives.

The state-owned domestic telecommunications firm PT
Telekomunikasi Indonesia (Telkom) currently divides Indonesia
into five telecommunications zones based on distance. Long
distance calls depend on duration and distance which ranges
between 25 kilometers to 1,000 kilometers. Calls within zone V,
covering 1,000 kilometers or more, are subject to the highest
rates.

He said that the new tariff arrangements will classify charges
into business, housing and social categories.

"The hours for discounted long distance calls will be extended
so that business people and the public will have more choices
when making long distance calls," he said.

But he declined to elaborate and said that technical details
will be announced by PT Telkom.

Secretary General of Tourism, Post and Telecommunications,
Jonathan Parapak added that the new tariff structure will not
only be determined by distances.

"Distance is no longer the main factor in setting long
distance call charges." Parapak said.

He said that the new tariff structure will be designed to
accelerate development in the eastern parts of the country.

"Consultants from the World Bank have concluded that long
distance telephone call tariffs in Indonesia are the cheapest
within the Southeast Asian nations after Singapore," he said.

Parapak also said that telephone line installation fees will
decrease by 30 percent, depending on whether the subscribers are
from business, social institutions (such as foundations and
orphanages) or homes.

Currently, subscribers in Jakarta and Surabaya (East Java)
pay Rp 1.01 million for the installation of one telephone line.
Telkom set cheaper tariffs for smaller cities.

According to Parapak, the new tariffs, both for long distance
calls and installation, are expected to be effective as soon as
possible, saying only, "we hope the new tariff will be introduced
next month." (icn)