Public to benefit from Indosat entry: Expert

Public to benefit from Indosat entry: Expert

JAKARTA: The government's decision to end state
telecommunications company PT Telekommunikasi Indonesia
(Telkom)'s monopoly of the fixed-line call business will benefit
the public, a telecoms analyst said.

The decision to end the monopoly by allowing another state
telecommunications firm, PT Indosat, to enter the business will
allow the public to choose the company that provides the best
service at the cheapest price, Roy Suryo said.

"For 30 years, the public has had no alternative in
subscribing to a fixed-line telephone. Now they have the
opportunity to choose the company they prefer, in terms of price
and service," said Roy.

He predicted the telecom companies would soon race to provide
new features and services to attract customers.

Although the right to set call prices remains in the hands of
the government, Roy said there was the possibility both Telkom or
Indosat could offer lower prices.

"To lower the call prices, both companies can offer, for
example, lower subscription fees, discounts, a termination of
roaming fees," he said.

To foster even greater competition in the industry, Roy said
the government should allow companies other than Telkom and
Indosat to enter the fixed-line call business, as well as
removing the director general of post and telecommunications from
Telkom's board of commissioners.

"Our telecommunications sector is regulated by the directorate
general of post and telecommunications. If the director sits on a
company that he regulates, there is the possibility of a conflict
of interest," Roy said. --JP