Telecoms union prepares new cellular phone tariffs
Telecoms union prepares new cellular phone tariffs
JAKARTA (JP): The Indonesian Association of Telecommunications
Companies are preparing more-reasonable tariffs for cellular
telephones in an attempt to attract more subscribers.
"A team of executives of the association, which is supported
by the Indonesian Telecommunications Society, are still
discussing the arrangement, which will be submitted to the
government by the end of this year," association chairman
Rahardjo Tjakranigrat announced after attending a hearing with
members of the House of Representatives yesterday.
He said cellular telecommunications tariffs should be lower
than current government-set levels.
"If the tariffs are lowered, more people will subscribe to the
facility, meaning more telecommunications traffic will be
performed," Rahardjo reasoned.
Cellular telephone utilization in Indonesia increased
significantly after the government lifted its 25 percent import
duty on handsets last October.
The decision was taken after handset prices were proven to be
steadily declining in the global market. Handsets are far more
expensive in Indonesia than in other countries.
National telecommunications law still recognizes the
government as the sole beneficiary of both telephone call tariffs
and installation fees.
"Government regulations are vital but the restructuring of
tariff arrangements for cellular telephone calls is necessary,"
Rahardjo said.
Cellular telephone calls are normally charged on the basis of
airtime, but subscribers in Indonesia are required to pay more
when phoning across zones and when using public telephone
switching networks.
Installation fees
The association also proposed that the House of
Representatives urge the government to erase installation fees.
Secretary-general of the Ministry of Tourism, Post and
Telecommunications, Jonathan L. Parapak, said recently that the
government is still comparing several tariff arrangements adopted
by various foreign operators.
The number of cellular telephone subscribers in Indonesia is
expected to increase from 200,000 at present to 600,000 by March
1999, and to one million by the end of the decade.
"If 1 percent of the 200 million people in the country
subscribe, investors may consider establishing a cellular
telephone manufacturing plant in Indonesia," Rahardjo
conjectured.
Last year the government lowered the installation charge from
one million to 300,000 rupiah a line to promote the use of mobile
telephones.
The government has licensed seven cellular telecommunications
operators: PT Satelindo, PT Telkomsel, PT Excelcomindo, PT
Mobilsel, PT Metrosel, PT Telekomindo and PT Komselindo. (icn)