Operators Re-calculate Interconnection Charges

Ilustrasi (dok)

JAKARTA (IndoTelko) - Indonesian Telecommunications providers Association (ATSI) has decided to leave its members in recalculating the interconnection charges that is being discussed with regulators.

"We agree to disagree. We have submitted the recalculation to each member," said ATSI Chairman who is also the President Director and CEO of Indosat Alexander Rusli, lately.

Currently the regulation on interconnection is still referring to the Minister of Communication and Information Technology's decree Number 08/per/M.KOMINFO/02/2006 on Interconnection.

While the rate of telecommunication services through cellular mobile network is regulated under the Minister of Communication and Information Technology Number 9 of 2008.

Minister of Communications and Information Technology Rudiantara has given his signals to review the interconnection. The process is still in operator's data collection stage, prior to be confirmed.

The Interconnection cost is a component issued by the operator to carry out cross-network calls. Cost is one component in determining the retail rates in addition to the margin, marketing costs, and others.

Alex said that Indosat is explicitly requested to reduce the interconnection costs. "We are fighting to reduce the interconnect cost. Currently the interconnection calls are cost based on the expenditure and it is charged to the interconnection fee. All traffic must be included, as long as everyone is using similar formula and understanding, then the figure should be appropriate," he said.

Alex said that the current formula used is in accordance with best practice. "If there is a difference calculation, meaning that there are different assumptions used. It has been made clear," he said.

Reasonably Reduced
Smartfren Telecom President Merza Fachys also mention similar matter that the interconnection reduce is reasonable due to the on net and off net rates in Indonesia that have a wide gap compared with other countries.

"If the interconnection cost is one of the factors that could re-grow telephone traffic, there is no harm to reduce the interconnection costs," he said.

Director of Inter-carrier, Government and Regulatory Relations from Hutchison Tri Indonesia (H3I) Chandra Hawan Aden said that interconnection charges are part of the customer's rights, so the rates is expected to be reduced and would affect the decline in off net rates.

"Interconnection is the rights of customers and it must not be limited to one operator's region. I think if we calculate from the cost, the current voice service is already cheaper, moreover the current operator's main focus is the data service," he said.

According to him, the current calculation by the government can lower the interconnection costs. Given that the current technology is increasingly efficient and more affordable now.

"If the interconnection rates are reduced later, it wouldn't affect the company's revenue. About half the company's revenue came from data services, so it will not have an impact if the interconnection rate is cut down," he said.

What about Telkomsel? President Director of Telkomsel, Ririek Adriansyah said that they would support to recalculate the cost of interconnection with the record, it is a fair calculation.

"We have proposed that the interconnection recalculation is cost for calls. As long as the government's calculation is reasonable and fair," said Ririek.

Ririek also added that the fair calculation should have differences in the application of tariffs in accordance to the operator's contribution in developing networks and infrastructure.

"For example, operator A have built thousand base transmitter (BTS) stations in an area, while other operators just  built one BTS, then ask to be be connected. Then they are asking the same interconnection costs, this could have disadvantaged the (income) country," said Ririek.

Ririek added that in order to calculate the fair interconnection cost, Telkomsel proposes the implementation of the interconnection zone. Given that there are operators who apply different interconnection standard rates.

"Some charge too cheap for on net rates (same operator), but expensive for off net (different operators)," said Ririek.

Retail rates
Separately, Member of the Indonesian Telecommunications Regulatory Body (BRTI) I Ketut Prihadi say this sejaih are verifying and checking data transmitted by the operator.

"Later we will unite the cost per zones thoroughly and we will calculate to reach the appropriate interconnection rate, it could increase or decrease. The retail fee could be cheaper although the interconnection fee is up," he said.

The process of collecting data from the operator is to be completed by the end of June. Then the data will be processed, verified by Ministry of Communication and Informatics and the ITRB in late August. The public testing would be carried out in September about interconnection regulation.(es)