New telecoms law passed by House bars monopoly
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)