Government asks cellular operators to disclose their cost structures

Jakarta (Antara News) - Communications and Information Minister Muhammad Nuh has called on cellular operators to disclose their cost strutures so that the government can see whether or not it is possible to lower their service rates.

With an open cost structure, the government will be able to see the investment and operational cost structures of cellular operator companies. Thus, it can decide a tariff that is financially more affordable by customers, the minister said here Tuesday.

"We hope they will be open with regard to their cost structures so that customers will understand why they have to pay such an amount for their cellular phones," the minister said on the sidelines of a discussion on service quality and lower tariffs.

The limited discussion was also attended by Director General of Post and Telecommunications Basuki Yusuf Iskandar, president director of Excelcomindo Hasnul Suhaimi Syam and deputy president director of PT Bakrie Telecom Erik Meijer.

"I hope cellular operators will open their cost structures. Possibly they want to get a 30-percent margin for business expansion. The tariff rate can be decided by taking into account the investment and cost figures," the minister said.

He said the government had fixed the upper and lower limits of cellular tariff rates in Indonesia.

The minister also expressed hope that operators would share resources so that they could fix a lower cellular tariff. "There should be resource sharing so that investment cost can be reduced and the tariffs for customers can also be lowered," he added. (*)
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