YLKI opposes plan to raise cell phone rate

JAKARTA (JP): The Indonesian Consumer Foundation (YLKI) called on the government on Thursday to delay a 23 percent rise in airtime rates for regular cellular phone services beginning next month.

YLKI's vice chairman Agus Pambagio said on Thursday it would certainly not be wise to raise the rate when most people still felt the brunt of the country's economic crisis.

"I think it be should postponed for another one or two months," he said.

He urged cellular operators to use the time to explain to customers the real reason behind the raise and what they could offer in return for the extra money customers must pay.

"If they cannot satisfactorily pledge a better service in return for the rate hike, then they should not raise the rate at all," he added.

The House of Representatives agreed on Monday to raise the airtime rates by 23 percent to Rp 400 per minute from Rp 325 at present.

The government initially proposed a 30 percent raise, while legislators agreed to let operators raise the rate by 15 percent only. Both figures, however, are still below the 45 percent raise proposed by cellular operators.

The chairman of House Commission IV for telecommunications and transportation, Burhanuddin Napitupulu, said the Ministry of Communications was expected to issue a decree to authorize the rate increase by the end of this month and apply the new rate next month.

Agus said the immediate implementation of the new airtime rate would not likely yield much profit for cellular operators because of the high cost of cellular technology and investment to the operators.

"The rate hike may instead prompt people to reduce their cellular phone usage. Many current cell phone users actually aren't financially capable to pay the bills," he said. He suggested that people with weak buying power stop pushing themselves into using cell phones.

Separately, Minister of Communications Giri Suseno hinted that it was unlikely his office would immediately implement the new rate.

"We are still looking at the best time to implement the rate adjustment. I'd say we'll wait until the public is ready for it," he said.

There are currently seven cellular phone network providers in the country serving three systems: the Advanced Mobile Phone System (AMPS), the Global System for Mobile Communications (GSM) and the Nordic Mobile Telephone (NMT) system. They serve over 1.6 million subscribers. (01/cst)