New telecoms law passed by House bars monopoly

JAKARTA (JP): The House of Representatives unanimously passed a telecommunications law on Wednesday eliminating all monopolistic practices in the country's telecommunications sector.

The new law, which must receive the President's approval before it can be implemented, allows companies to enter the country's telecommunications sector without having to collaborate with state-owned telecommunications firms PT Telkom and PT Indosat.

In order to honor the commitment the government gave to foreign investors prior to the initial public offering of the two state-owned companies, however, the law will maintain the exclusive rights held by Telkom and Indosat.

Telkom will be allowed to maintain its control over local fixed lines nationwide until 2010 and domestic long-distance telecommunications services until 2005. Indosat and its subsidiary PT Satelindo will keep their control over international long-distance services until 2004.

During the plenary session, the House's four factions urged the government to speed up the exclusive-rights period so it would not impede the implementation of the new law.

Minister of Communications Giri Suseno said negotiations to slash the exclusive-rights period could occur as soon as there was a company which wished to enter the sectors currently dominated by Telkom and Indosat.

"Other companies should offer Telkom or Indosat a compensation fee for cutting their exclusive rights. It will be up to Telkom, Indosat and the new player to reach a deal," he said.

Giri said despite the fact the new telecommunications law maintained Telkom and Indosat's exclusive rights, it was much better than the previous law because it addressed the rights and responsibilities of both telecommunications providers and users.

The new law allows telecommunications users to file a personal or class action lawsuit against a telecommunications provider for poor service.

The law also prohibits individuals from acquiring unlawful access to telecommunications networks and frequencies, as well as from manufacturing or selling counterfeit telecommunications equipment.

The law prohibits telecommunications providers from treating their customers unfairly, compelling customers to choose a particular provider and disclosing information transmitted by customers through their telecommunications equipment.

Any parties failing to comply with the regulations face a jail term of between one and six years and/or a fine of between Rp 100 million and Rp 600 million.

The chairman of House Commission IV for telecommunications, tourism and transportation, Burhanuddin Napitupulu, said the new law was expected to serve as "shock therapy" for violators of telecommunications regulations.

The law will become effective a year after it is signed by President Habibie. (cst)