New Fixed Line Licenses to be Issued in 2007
Monday, 11 December, 2006 | 16:35 WIB

TEMPO Interactive, Jakarta: The government will issue licenses for providing new fixed telephone lines in the first quarter of 2007.

Gatot S. Dewa Broto, spokesperson of the Post and Telecommunication Directorate General at the Information and Communication Department, said the new licenses are aimed at creating competition among bandwidth rental services with competitive and affordable tariffs.

“Provision of telecommunications services can be efficient,” said Gatot in Jakarta yesterday (10/12).

The duopoly policy during the last five years has not yet led to any significant rise in telecommunications teledensity due to access network and backbone limitations.

Network development for provision of local fixed telephone lines has only been concentrated in beneficial areas.

The number of direct long-distance call (SLJJ) fixed telephone lines is still limited, only via PT Telekomunikasi Indonesia and PT Indonesian Satellite Corporation.

However, Indonesia’s geographic condition is enormous.

As regards international direct call fixed telephone lines, the landing point of the destination country is still limited in line with the limited amount of operators.

“The international backbone network, both in terms of links and capacities, is also still limited so bandwidth rental prices are expensive,” he said.

Gatot explained that new licenses for the provision of local fixed telephone lines will be awarded to current operators or new operators that have not had fixed line licenses and are not affiliate with other operators that have licenses.

“The licenses are a package of providing local fixed telephone lines and SLJJ telephone lines,” he said.

Eko Nopiansyah