Telkom to invest in VoIP business

BANDUNG: The state-owned telecommunications firm PT Telkom will expand its business by investing in the so-called Voice of Internet Protocol (VoIp) business, a senior official said on Monday.

Telkom vice president for communications B. Eddy Praptono was quoted by Antara as saying that Telkom would allocate some US$7 million for developing VoIP infrastructure in 22 cities across the country.

Eddy said that VoIP offers many benefits to customers.

He pointed out that, compared to the fixed-line telephone, VoIP was cheaper for internet users, especially in Long Distance Direct Dialing (SLJJ) which costs only half of the fixed-line telephone tariff.

He added that VoIP technology, through its packet switching facility, could provide one channel for eight telephone connections. Generally, one channel only serves one connection.

Eddy said that the government had granted VoIP licenses only to PT Telkom, PT Indosat, PT Satelindo, PT Atlasat and PT Gaharu. -- JP