Minister unhappy with recalculated interconnection rates

11 Dec 2015

Indonesia’s Minister of Communications and Information Technology (MCIT) Rudiantara has revealed his dissatisfaction with the recalculation of interconnection charges, a process that began in the middle of this year. According to the online portal IndoTelko, having seen the results of the recalculation the minister said: ‘I am not satisfied, I … am seeing no significant reduction in termination charges’ applied for cross-network calls. Rudiantara is keen to update a system that has not been revised for a number of years; interconnection charges on fixed telephony and cellular services are currently implemented under measures introduced in 2006 and 2008, respectively. The MCIT supremo is keen for more to be done, saying that trimming rates still further will have a beneficial impact on the wider community. ‘We want to see a balancing between on-net calls and inter-operator networks. I will not be a [signatory on the new measure] if the decrease is not significant. As it stands, the termination charges are too high – by a factor of six to seven times,’ he said. The process of recalculating interconnection costs is currently being carried out by the telecoms operators and the Indonesian Telecommunications Regulatory Body (BRTI). Rudiantara has hinted that the reductions arrived at will need to be much more significant if he is to sign it into law in Q1 2016.