There is Full Liberalization in Telecommunication Market (Opini) (2/01)

Thursday, January 03, 2008

One of sectors which conducted full liberalization in Indonesia is telecommunication. One of the evidences is since 1999 the government issued Telecommunication Law No. 36/ 1999, following by the invitation of new telecommunication operators in 2002, telecommunication industry developed fast. If earlier telecommunication sector was dominated by PT Telkomsel and PT Indosat in 2002, now, there are 11 operators provide cellular telephone service across the country. The 11 operators are Telkom, Telkomsel, Indosat, Excelcomindo (XL), Hutchison (3), Sinar Mas Telecom, Sampoerna Telecommunication, Bakrie Telecom (Esia), Mobile-8 (Fren), and Natrindo Telepon Selular (formerly Lippo Telecom). Competition really happened and it's not pseudo competition. Cheap tariff and promotional tariff strategies were conducted by the operators. Currently telecommunication industry enters price wars while new operators start to maximize its network capacity. Basuki, Director General of Post and Telecommunication of the Ministry of Communication and Information

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