Rate hike cheers phone operators

Rate hike cheers phone operators

JIMBARAN, Bali (JP): Despite possible objections from the
public and consumer bodies, mobile phone operators are happy with
the government's plan to raise cellular phone tariffs 10 percent
starting January.

President of PT Satelindo, Saleh Gunawan, told The Jakarta
Post here yesterday that the rate increase from Rp 270 to Rp 297
per minute, had been awaited by cellular providers.

"Cellular operators still need further investment to improve
their infrastructures which will then improve their services to
the public," he said.

He said cellular operators would be satisfied with the 10
percent increase.

Satelindo runs the Global System for Mobile communication
(GSM), the Palapa C1 and C2 satellites and international
telecommunications services.

Another GSM operator, PT Telkomsel, also hailed the new
tariffs. Company president Koesmarihati Sugondo said that higher
cellular tariffs were necessary to improve services.

"But we are also required by the government to be more
efficient," she said.

She said that cellular operators, for instance, could share a
tower for their base transceiver stations. "This could cut our
costs."

She admitted that the government plan to hike cellular tariff
could pose a burden for some people.

"We'll improve our services. On the other hand, the government
also plans to reduce the cellular connection fee 50 percent."

The government announced Wednesday that the annual telephone
tariff adjustment, including reduced and raised rates, would be
effective as of Jan. 1, 1998.

Local calls will rise 8.69 percent to Rp 125 from Rp 115 per
pulse, while domestic long distance calls will be cut 10.1
percent to Rp 97 from Rp 108 per pulse. New fixed-line
installation fees will be cut 50 percent on average.

Director General of Post and Telecommunications Djakaria
Purawidjaja said Wednesday that telephone tariffs would be
adjusted gradually within three years.

He said local call charges would be raised while domestic
long-distance call charges would be reduced.

The ideal tariffs would be Rp 200 per pulse for local calls
and Rp 50 per pulse for domestic long-distance calls, he said.
(icn)