For SLJJ connection, the tariff is Rp 480/minute and SLI Rp 240/minute.
The license if effective as from August last year for local telephone and in August this year for long distance call (SLJJ) telephone.
The two sectors contribute very little to the income of the company compared with the contribution of more than 50% from SLJJ.
SLJJ has also faced competition from voice over internet protocol in contribution to the company income, therefore, the present tariff structure is no longer valid as Telkom has been stripped off its monopoly in fixed telephone industry.
Until now the government has provided compensation for Indosat in the form of license to operate cellular phone with the technology of DCS 1800 under Indosat Multi Media mobile (IM3) and to be followed with SLJJ
However, in principle, the VoIP tariff to be sold to the public must be lower than the SLJJ
and SLI tariffs which is based on the PSTN networks.
The government has issued the principle licence to build SLJJ
to Indosat and principle licen for International Direct Dial (SLI) to PT Telkom in exchange for the early termination of the exclusive rights of the two state companies.
In line with the change, the government liberalized the operation of telecommunication services, by eliminating monopoly enjoyed so far by PT Telkom in local connections and direct long distance connections (SLJJ
) and by Indosat and Satelindo in direct international connections (SLI).
Long-distance direct dial (SLJJ
) contributed the largest portion to the total production.
But the tariff for long distance call (SLJJ) was reduced from Rp 108 to Rp 97 per pulse.
On the contrary, long distance call (SLJJ) tariff will be reduced.
In the 1992-1996 period, the pulse production of automatic telephone connections for local and SLJJ calls grew 35% annually from 12.87 billion pulses to 42.3 billion pulses.