KPPU rules against Telkom

KPPU rules against Telkom

Tony Hotland, The Jakarta Post/Jakarta

The Business Competition Supervisory Agency (KPPU) ruled on
Friday that telecommunications company PT Telekomunikasi
Indonesia (Telkom) was guilty of violating Law No. 5/1999 on
Monopolies and Unfair Competition.

KPPU member Tadjuddin Noersaid said Telkom was proven guilty
of blocking rival PT Indonesian Satellite Corporation (Indosat)
from providing its international call dial service, 001 and 008,
in phone shops.

The problem started when Telkom launched its international
call service using Voice over Internet Protocol (VoIP) technology
with code 017 in 2001.

"Indosat said people started having difficulties connecting
via 001 and 008 as the lines were blocked by Telkom. The
Directorate General of Posts and Telecommunications surveyed a
number of phone shops and discovered that connections to 001 or
008 were either rerouted to 017 or frequently unsuccessful," said
Tadjuddin.

For international call connections from non-cellular phones,
Indosat depends on Telkom's fixed-line network since the latter
is the only operator that has a nationwide network.

The problem got worse, said Tadjuddin, when Telkom started
setting up its own Telkom phone shops that provide only Telkom
services.

"These phone shops are exempt from setup and monthly
subscription fees, which made business players start switching to
operate Telkom phone shops instead," he explained.

KPPU ordered Telkom to revoke all of its policies regarding
its phone shops, as a Ministry of Communications decree
stipulates that phone shops must provide communications services
from all operators, and to open all communications lines,
including Indosat's.

Telkom has been given 14 days to respond to the KPPU verdict.
The KPPU has yet to decide on sanctions on Telkom if it fails to
comply with the ruling.