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