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Indonesia: Cost-based interconnection Print E-mail
Friday, 08 April 2005
Indonesia’s government will introduce cost-based interconnection for telecommunications operators starting on January 1, 2006 to replace the existing revenue sharing system.

Suryadi Azis, from the telecommunications sector regulator, BRTI, said that consultant Ovum, which was studying the matter, proposed a cost-based interconnection regime.

"Ovum recommendation will be used as the basis for implementation of cost-based interconnection which has been agreed by the operators. The implementation will be in stages but should start on January 1, 2006 at the latest," Azis said.

"We will try to strictly implement the scheme," he added. He said the existing revenue-sharing system should be replaced, as it does not support fair competition.

Sarwoto Atmosoetano, head of PT Telekomunikasi Indonesia's long distance calls division, said that the implementation of cost-based interconnection will reduce costs but should not reduce earnings as interconnection call volumes will rise.

Source: AFX Asia