SMS Price Cartel

Natrindo Admits Signing SMS Contract
Thursday, 17 January, 2008 | 16:29 WIB

TEMPO Interactive, Jakarta: PT Natrindo Telepon Seluler (NTS) has acknowledged it also signed a contract for short message service (SMS) price setting with Pt Telekomunikasi Selular (Telkomsel) and PT Excelcomindo Pratama (XL).

This was revealed during a further investigation into SMS tariff setting at the Business Competition Supervisory Commission (KPPU) yesterday (16/1).

Dedie Martadisastra, the KPPU Investigation Assembly Chairman, said NTS signed the contract because as a new player, it had to follow the old players.

“NTS said the contract was signed by the old management,” said Dedie after the investigation in Jakarta yesterday.

Earlier, KPPU had scrutinized new operators, including PT Smart Telecom, PT Bakrie Telecom Tbk. and PT Hutchinson CP Telecommunications.

PT Indosat Tbk. has also given statements during the second investigation.

From the result of the earlier investigation, KPPU found that five operators were suspected of being involved in a SMS price cartel.

“NTS made the contracts with Telkomsel and XL between 2001 and 2003,” said Dedie.

KPPU's Assembly also asked for data regarding SMS basic cost calculation.

NTS has promised to provide the data, but has not yet confirmed when.

The same request was also conveyed to other operators that were also suspected being involved in setting SMS tariffs.

The KPPU Assembly will look into this matter in terms of the investment aspects.

From telecommunication industry cost structure, cost elements for voice service, SMS and depreciation expenses will be seen.

This is because, from there, the break event point estimation can be identified.

The KPPU Assembly will also look at technical, economic and legal elements to prove about the cartel.

From the second investigation result, the allegation of price setting by the new and old players has grown stronger.

On a separate occasion, Telkom Managing Director Rinaldi Firmansyah said that during a period of competition, it is difficult to apply a cartel in the telecommunication industry.

“Almost the same price doesn't mean a cartel,” he said.


Share this

Related Posts

Next Post »