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)