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Operators yet to determine SMS Cartel punishment

09:47:17 | 11 Mar 2016
Operators yet to determine SMS Cartel punishment
Ilustrasi (dok)
JAKARTA (IndoTelko) – Telecommunication operators that are found guilty of SMS cartel allegation admitted could not determine further legal steps taken as they have not received a copy of the Supreme Court (MA) verdict.

"Telkom has not received a copy of the ruling of the Supreme Court. If a copy of the decision is received, Telkom will review such decision to determine the next legal steps, "said Investor Relations VP of Telkom Andi Setiawan in a statement to the Indonesia Stock Exchange on March 3.

President Director of XL Dian Siswarini also claimed that they have not specify the next legal steps to be taken. "We have not received a copy of the verdict. We must learn and see first once we receive the copy,” said Dian yesterday.

Separately, Chairman of Indonesian Telecommunications organizer Association (ATSI) Alexander Rusli is supporting the operators to make legal effort to fight for their fate.

"We will support if they are filing a Review (PK). We hope the operator’s legal tem can ensure a comprehensive technical arguments that are built using the most appropriate legal angle," Rusli said IndoTelko, yesterday.

Previously, the Business Competition Supervisory Commission (KPPU) expects mobile operators who were convicted in the SMS cartel case in 2008 to implement the Cassation decision issued by the Supreme Court.

The Commission stated that six Indonesian cellular operator who are fined namely PT Pratama, Tbk (now PT XL Axiata), PT Telekomunikasi Seluler, PT Telekomunikasi Indonesia, Tbk, PT Bakrie Telecom, PT Mobile-8 Telecom, Tbk, and PT Smart Telecom.

These six operators have violated Article 5 of Law No. 5, 1999 that stating business agent is prohibited from making agreements with its business competitors to fix the price of goods and or services to be paid by the consumer or the customer on the same relevant market

The infringement form is related to the operators interconnection cooperation Agreement, where one of the clause includes SMS tariff which resulted in an off –net SMS price cartel in 2004 to April 2008.

National Consumer Protection Agency (BPKN) also asked convicted operators to pay the consumers damages immediately that reaches Rp2.8 trillion.

Payment for these losses must be done voluntarily by the operator in the form of internal company policies, given the difference between the penalties and fines to be paid fines to be returned to the consumer.

According the consumer protection agency, the Rp77 billion fines decided under the appeal in the Supreme Court was considered too small to be paid by five cellular companies through the state treasury.

BPKN suggest one way to provide compensation to customers by organizing SMS discount. This step is executed for postpaid subscribers. Operators only need to enter nominal damages to the customer's account.

But a number of consumers have changed their cellular number since the SMS cartel took place in 2004-2008. To overcome these obstacles, the mobile operators are advised to enable free SMS program for a full month in a specified period for all customers, both prepaid and postpaid.(es)

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