Legal hurdles facing VoIP in RI

JAKARTA (JP): Adrie Taniwidjaya is a businessman who graduated from the Bandung Institute of Technology. He made Global Net, a Calling Card company providing inexpensive overseas calls. Using Voice over Internet Protocols (VoIP) technology, the customer dials in a local number on his regular phone and is connected to his destination via the Internet. So imagine Andrie's surprise when he was arrested in August on charges of stealing revenue (telephone charges) from the long-distance telephone operators.

Global Net does require the use of the local telephone network but the allegation of long-distance revenue theft is rather inaccurate. VoIP does not use any of the long-distance circuits currently in place but utilizes Internet bandwidth from the connection that unites Indonesia to the rest of the world. So, perhaps Global Net is stealing customers away from the telephone companies? Perhaps, but in the highly competitive world of long- distance calls, can you call it a crime?

The state of VoIP technology in Indonesia is still rather unclear. While it's not exactly illegal to operate (you require a government license to activate it), very few companies (including long-distance giants Indosat and Satelindo) are permitted to officially offer Internet telephony. Indonesia has some of the most expensive International Direct Dial (IDD) charges in the world. The profits earned by the telephone companies may be high but one could argue that the exposure or use of long-distance in general among the population is still low.

Taniwidjaya was later released by the police. His case (and another similar one in Surabaya) seems to suggest that the monopoly enjoyed by the phone companies is still strong. However, the communications Mandarins should take note. With the explosion of Free PC-to-Phone websites and VoIP Phone-to-Phone services offered globally, the national market share of the Telco's can only shrink as users clamor for more economical services.

National direct competition is necessary to energize the local and international long-distance industry. More companies offering VoIP could mean increased tax revenues for the government as well as lower rates. Lower rates translate into greater market share on the whole as they will attract a larger segment of the population. So everyone wins.

One popular sentiment is, "Why pay more for something that is actually worth a lot less?" With efficient use of technology, we can offer more reasonable services for the consumer. But if entrepreneurs keep on facing various bureaucratic, licensing and legal hurdles, the VoIP industry in Indonesia can never take off, leaving it open to overseas domination. Which brings to mind another saying: "When will we ever move forward?" (Vishnu K. Mahmud)