New telecoms bill gives users better protection

JAKARTA (JP): The new telecommunications bill is expected to better protect the rights of telecommunications providers and users, say legislators, telecommunications providers and government officials.

Deputy chairman of the United Development Party (PPP) faction, Ali Hardi Kiaidemak, said over the weekend the new bill stipulated increased sanctions against individuals or institutions violating regulations in the telecommunications sector.

"We hope the new bill will be effective in eradicating violation and fraud in the telecommunications sector committed either by telecommunications providers, users or non-users," he said.

On Thursday, House Commission IV for communications approved the government's proposed new telecommunications bill, which will replace the existing Telecommunications Law No 3/1989.

The new bill, which is expected to be endorsed by House members on Aug. 25, stipulates the abolishment of exclusive rights given to domestic telecommunications provider PT Telkom and international telecommunications PT Indosat. However, the two companies will be allowed to hold their exclusive rights until their contracts ended.

Telkom has the rights to provide local fixed lines nationwide until 2010 and domestic long distance telecommunications services until 2005. Indosat, and its subsidiary PT Satelindo, have the rights to supply overseas long distance services until 2004.

In order to protect the rights of customers, the new bill prohibits telecommunications providers from compelling customers to choose a particular provider or from disclosing information sent by customers through their facilities.

Customers and other members of the public will be prohibited in the law from unlawful accessing any telecommunications network and frequencies, and from making or selling counterfeit telecommunications equipment.

Parties failing to comply with the regulations could face a jail term of between one year and six years and/or a fine ranging from Rp 100 million to Rp 600 million.

Chairman of Commission IV Burhanuddin Napitupulu said the new bill would be "shock therapy" for violators of telecommunications regulations.

Violations in the telecommunications sector were not seriously addressed before due to inadequate rules and sanctions stipulated by the existing law, he said.

The current law imposes a maximum one-year jail term or a Rp 10 million fine for all violations.

Head of the industry policy division of the Indonesian Cellular Telephone Association (ATSI), Rudiantara, said the new bill should prevent telecommunications providers from cheating customers. He said the bill would prevent providers from neglecting to provide customers with all necessary information or from changing the terms of services without their customers' consent.

The bill is also expected to prevent irresponsible customers from evading the responsibility of providing true information or from paying fees.

Local cellular operators said they lost over Rp 200 billion last year as a result of unpaid bills by customers who had provided fake identities.

State telecommunications company PT Telkom earlier suggested the establishment of a separate law or decree regarding violations in the telecommunications sector. Telkom said areas needing to be covered in a separate law were illegal interception, electronic vandalism, theft of telecommunication services, telecommunication piracy, telemarketing fraud and electronic funds transfer crimes.

Telkom said the separate law was needed to allow stronger law enforcement in the telecommunications sector.

However, head of the telecommunications and information supervision, Eman S. Sumantri, said there was no significant reason to create a separate law on telecommunications fraud.

"We believe the new bill is adequate enough to accommodate all issues regarding regulations and sanctions in the telecommunications sector," he said. (cst)