Internet executive calls for rate standardization

Internet executive calls for rate standardization

JAKARTA (JP): Subscription fees for Internet services must be
standardized due to the increasingly stiff competition in the
rapidly expanding sector, an executive says.

"Internet providers currently compete to net as many
subscribers as possible. One of the best ways to attract users is
to offer lower subscription fees," Sentot Baskoro, the marketing
manager of PT Cyberindo Aditama which runs CBNet, said Saturday.

He said that users must be careful because the quality of
services might be poor due to the low subscription fees.

Since the introduction of Internet in Indonesia in late 1994,
22 information service providers have emerged in the country.

Last year, the government introduced a regulation allowing
only small-scale firms operated by young professionals to provide
Internet services. Thus, big firms do not have the opportunity to
enter the Internet service business.

In practice, however, the issuance of operational licenses has
seemed inconsistent. For example, PT Indosat, the state-owned
international telecommunications provider, which is listed on the
New York Stock Exchange, launched an Internet service last month.

Indosat, which recorded a 59 percent increase in its profits
to Rp 459.4 billion ($235 million) last year, cannot be
classified as a small-scale firm.

Internet service providers consider Indosat the first firm to
introduce the lowest subscribing fees. The company set Rp 50,000
as its registration fee and its monthly subscription rates range
between Rp 40,000 and Rp 90,000 for individual users. Corporate
users are required to pay Rp 400,000 in registration and
installation fees and monthly subscription rates of between Rp 1
million and Rp 3.5 million.

Internet subscription fees vary, depending on the access
periods and accessibility speed.

In comparison, PT Rajasa Media, which runs Radnet, sets a
registration fee of Rp 65,000 for individual users, while the
monthly subscription fees range between Rp 95,000 and Rp 125,000.
For corporate users, Rajasa sets between Rp 350,000 and Rp 4
million for registration and installation fees and between Rp
350,000 and Rp 5 million for monthly subscription fees. (icn)