| The government chose to delay new cost-based interconnection rules, which had been scheduled for release early in October, in order to further refine the regulations so as not to damage stakeholders' interests.
Directorate General of Postal and Telecommunication Services representative Gatot S. Dewa Broto said the government was very careful in drafting the cost-based interconnection regulations.
"The draft is now under deliberation by the Directorate General of Postal and Telecommunication Services, the Indonesian Telecommunication Regulatory Body, and operators," he said.
Gatot added that the regulations would be issued by the end of the year, so that they would take effect in early 2006. He said the need for cost-based interconnection is urgent because the rules would spur call traffic growth. He continued by saying that cost-based interconnection would also lead to a reduction in cross-subsidies.
Currently, interconnection in Indonesia is based on a revenue-sharing model in which the tariffs depend on bilateral agreements between operators. In this way, the major operators have the potential to get a larger share of interconnection revenues. By contrast, in the cost-based system the government determines the tariffs that operators have to offer in providing interconnection with other operators.
Source: Bisnis Indonesia - WDR/Intelecon Regulatory News
|