Government Delivers Ultimatum to Hutchinson and Natrindo
Monday, 44 , 30-8 | 15:44 WIB

TEMPO Interactive, Jakarta: The government is threatening to annul the third generation cellular telecommunication service (3G) frequency licenses belong to PT Hutchinson CP Telecom Indonesia and PT Natrindo Telepon Seluler if the two operators do not provide their 3G services soon.

Basuki Yusuf Iskandar, Director General of Post and Telecommunication at the Information and Communication Department, said so far the two operators have not yet started providing 3G services commercially.

However, according to him, when the government gave the licenses in February 2006, the two operators agreed to start the services at the end of this year at the latest.

The obligation details: the first year comprises minimum two provinces with minimum 10 percent range.

In the second year, to five provinces with 20 percent range and in the third year eight provinces with 20 percent range.

In the sixth year, the service must reach 14 provinces with a minimum 30 percent range.

“Operators that do not carry out the commitment will be fined and the given 3G license will probably be annulled,” said Basuki in Jakarta yesterday (29/11).

In addition to the deadline of service commencement, he went on to say, operators must pay performance bonds amounting to Rp20 billion each as the operator's commitment to develop 3G network development.

“And if their licenses are annulled because they do not start the service, performance bond obligations must still be paid,” said Basuki.

Up until the news was reported, Hutchinson's management had not yet been able to be contacted for comments.

Natrindo's President Director, Kusnadi Sukardja, when contacted yesterday, promised to start 3G service by accelerating the network construction process.

“The point is we will to try to avoid having the license annulled,” he said.

Kusnadi acknowledged there are still impediments in the construction of base transceiver station (BTS) in Jakarta area.

“We will try all efforts,” he said.

EKO NOPIANSYAH