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)