Legislators call for limit on cellular operators

Legislators call for limit on cellular operators

JAKARTA (JP): Legislators have called on the government to
limit the issuance of licenses to new cellular operators in the
country and instead focus on improving existing services.

Burhanuddin Napitulu of the House of Representative's
Commission V for telecommunications, post and tourism, public
works and public housing said yesterday the government must be
more selective in issuing licenses to new cellular operators.

"This would prevent us from having an oversupply in the sector
and providing insufficient services to customers," he said during
the commission's inspection of cellular operator PT Telkomsel.

Given the rapid growth of cellular operators in the country,
it seemed the government was not being selective enough, he said.

The government has recently opened tenders for 11 new cellular
licenses to operate the Personal Communication Network, which
includes the Digital Cordless System and Personal Mobile Phone
Service (PHS). The government earlier issued licenses to five
firms to operate in the two cellular systems.

Indonesia currently has seven cellular operators running three
different cellular telephone systems. They are PT Telesera, PT
Metrosel, PT Komselindo, PT Mobisel, PT Satelindo, PT Telkomsel
and PT Excelcomindo.

Burhanuddin said in a few years Indonesia would have 23
cellular operators, most of which would begin operations in
Jakarta.

Discuss

He suggested the government discuss the matter with the House
of Representatives before issuing such licenses.

"At least let us know by conducting hearings with us, before
awarding the licenses to more operators," he said.

Burhanuddin said he was concerned operators would only be
interested in making profit and would neglect customers' needs
for good service.

Many cellular phone users have filed complaints against the
existing services in the country. Complaints include operators'
limited coverage and unsuccessful or uncompleted connections.

Cellular phone users have also complained about administrative
errors that resulted in irregular monthly invoices.

Satelindo's transition to a new billing system, which caused
many administrative errors, recently angered many of its
customers as the amount of their phone bills was unrealistically
multiplied.

Hundreds of Telkomsel customers lined up at the company's
customer service office last week to complain about having their
services disconnected.

Telkomsel's president Koesmarihati Sugondo said yesterday one
of the causes of the disconnections was late notifications from
banks from which the account was withdrawn to pay the bill.
(das)