Government Opting for Internet Rates Referral Fee

Ilustrasi (dok)

JAKARTA (IndoTelko) - The government is more likely to adopt a data rates referral fee similar to voice and SMS services rather than applying the highest tariff threshold in order to protect customers and mobile operators.

"I never want to use the upper or lower threshold for mobile. We would apply the similar pattern as the voice and SMS service tariff. Both services are using the same referral tariffs, the interconnection fee and so as the data tariff too," said the Minister.

In determining the interconnection for voice and SMS services must be overviewed from the termination side, meanwhile the data service must be determined the business model and the production points.

"I asked the operator to discuss business models, the we would set the reference rate pattern. If the government to subsidize the transmission, then it would not be relevant for operators to talk about distance in providing the data service and the ideally the Point of Charge (POC) not as much as the roaming in voice service," he said.

Currently telecommunications services tariffs for cellular mobile network is regulated within the Minister of Communication and Information Technology's Regulation Number 9 of 2008 (PM 9/2008).

The current voice and SMS services are using transparent, non-discriminative and promoting the principle of cost-based (corresponding costs) interconnection charges. The interconnection charges calculation for using the Bottom Up Long Run Incremental Cost (LRIC BU) calculation method with Forward Looking approaches.

Interconnection cost is one retail rates component besides promotional costs and profit margins. Currently, nobody dares to drastically cut the interconnection costs that led to the service rates remain high. Mobile to mobile interconnection fee is still Rp 250 per minute call and will be corrected in 2016.

Beleid
The government claims is preparing a thorough beleid related on the data service tariff in order to protect consumers and operators.

For the short term the government is asking the operators to recalculate the rates given to customers in eastern Indonesia such as Maluku, East Nusa Tenggara and Papua to close the disparity gap with customers in western Indonesia.
 
In the medium term, the government will develop and implement a package of regulations aimed at optimizing the utilization of the Universal Service Obligation (USO) funds to support the acceleration of equity broadband services.

Next, is to encourage the efficient utilization of the telecommunications infrastructure (infrastructure sharing) and produce a interconnection costs calculation formula that is fair, also the affordable retail rates for voice, SMS and data/internet.

"We have not yet making any arrangements for retail tariff to internet services, the current operator are still applying tariffs independently based on market mechanisms. We want to regulate it by concerning affordability from the customers and sustainability side from the operators, "said Rudiantara.

Finally, long-term solution is that the government will finish the Palapa Ring project and the Indonesian Broadband Plan 2014 - 2019, as mandated in Presidential Decree Number 96 Year 2014 to overcome the internet service gap.

"The USO fund could be used for a relatively large area, small population with a high investment and only one operator who is willing to enter. We would try the subsidy from the transmission side or the tariff later, the key is to redesign the USO concept first," said. (es)