REGULATION OF THE MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY. NUMBER: 12/Per/M.KOMINFO/02/2006 ON THE TERMS OF

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1 REGULATION OF THE MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY NUMBER: 12/Per/M.KOMINFO/02/2006 ON THE TERMS OF PROCEDURE FOR STIPULATION OF CHANGE OF BASIC TELEPHONY SERVICE RATE THROUGH MOBILE CELLULAR NETWORK BY THE GRACE OF GOD ALMIGHTY THE MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY, Considering : Whereas, in order to implement Article 37 of Government Regulation Number 52 of 2000 on Telecommunication Operation regulating formula of telecommunication rate calculation, it is necessary to regulate procedure for stipulation of change of basic telephony service rate through mobile cellular network by virtue of Regulation of the Minister of Communication and Information Technology; In view of : 1. Law Number 36 of 1999 on Telecommunication (State Gazette Number 154 of 1999, Supplement to the State Gazette Number 3881); 1

2 2. Government Regulation Number 52 of 2000 on the Provision of Telecommunication Services (State Gazette Number 107 of 2000, Supplement to the State Gazette Number 3980); 3. Decree of the Minister of Communication Number KM.4 of 2001 on Stipulation of the 2000 National Fundamental Technical Plan as already amended by virtue of the Decree of the Minister of Communication Number KM. 28 of 2004 and Regulation of the Minister of Communication and Information Technology Number 6 of 2005; 4. Decree of the Minister of Communication Number KM.20 of 2001 on the Provision of Telecommunication Network as already amended by virtue of the Decree of the Minister of Communication Number KM.29 of 2004; 5. Decree of the Minister of Communication Number KM.21 of 2001 on the Provision of Telecommunication Services as already amended by virtue of the Decree of the Minister of Communication Number KM.30 of 2004; 2

3 6. Decree of the Minister of Communication Number KM.23 of 2002 on Internet Telephony for Public Needs as already amended by virtue of the Decree of the Minister of Communication Number KM. 32 of 2004 and Regulation of the Minister of Communication and Information Technology Number 7 of 2005; 7. Decree of the Minister of Communication Number KM.31 of 2003 on Establishment of the Indonesia s Telecommunication Regulation Agency as already amended by virtue of the Regulation of the Minister of Communication and Information Technology Number: 25/P/M.KOMINFO/11/2005; 8. Decree of the Minister of Communication Number KM. 33 of 2004 on Healthy Competition Supervision in the Provision of Permanent Network and Basic Telephony Service; 9. Regulation of the Minister of Communication and Information Technology Number 01/P./M./KOMINFO/04/05 on Organizational Structure and Working Procedure of the Ministry of Communication and Information Technology; 10. Regulation of the Minister of Communication 3

4 and Information Technology Number 03/P/M.Kominfo/5/2005 on the Changes of Terms in Some Decrees/Regulations of the Minister of Transportation that govern Special Materials in the field of Post and Telecommunication; 11. Regulation of the Minister of Communication and Information Technology Number 08/Per/M- KOMINFO/02/2006 on Interconnection. DECIDES: To proclaim: REGULATION OF THE MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY ON TERMS OF PROCEDURE FOR STIPULATION OF CHANGE OF BASIC TELEPHONY SERVICE RATE THROUGH MOBILE CELLULAR NETWORK. CHAPTER I GENERAL PROVISIONS Article 1 In this Regulation, the following terms shall have the meanings as ascribed to them as follows: 1 Change rate shall mean amount of rate calculated based on change rate formula; 2 Interconnection shall mean connection among telecommunication network from different telecommunication network providers; 3 Interconnection cost shall mean the expenses charged resulting from connection between two telecommunication 4

5 network providers or more, and or connection between telecommunication network and equipment of telecommunication service provider; 4 Dominant provider shall mean a provider that owns operating revenue of 25% or more from total operating income of all telecommunication providers in their segmentation of service; 5 Floor price shall mean amount of minimum change rate that can be applied by operator; 6 Working day shall mean Mondays through Fridays, except national holiday determined by the Government; 7 User shall mean customer and user; 8 Minister shall mean a Minister whose scope and responsibility are telecommunication sector; 9 Director General shall mean Director General of Post and Telecommunication; 10 BRTI (Indonesia s Telecommunication Regulation Agency), hereinafter referred to as BRTI, shall mean Directorate General of Post and Telecommunication and Committee of Telecommunication Regulation. CHAPTER II STRUCTURE OF BASIC TELEPHONY SERVICE RATE THROUGH MOBILE CELLULAR NETWORK Article 2 (1) Structure of basic telephony service rate through mobile cellular network shall consist of: 5

6 a. Activation fee; b. Monthly subscription fee; c. Use cost; d. Additional facility cost. (2) Activation fee as referred to in paragraph (1) letter a shall constitute cost charged to the user for the activation of basic telephony service through mobile cellular network; (3) Monthly subscription fee as referred to in paragraph (1) letter b shall constitute monthly subscription fee charged to the user; (4) Use cost as referred to in paragraph (1) letter c shall constitute cost charged to the user for each use of basic telephony service through mobile cellular network; (5) Additional facility cost as referred to in paragraph (1) letter d shall constitute cost charged to the user of basic telephony service through mobile cellular network for the use of additional facility. Article 3 (1) The use cost as referred to in Article 2 paragraph (4) shall consist of: a. Cellular use cost; b. Local permanent cellular use cost; c. Long distance permanent cellular use cost; d. International permanent cellular use cost. (2) (2) The cellular use cost as referred to in paragraph 6

7 (1) letter a shall constitute cost charged to the user of basic telephony service through mobile cellular network, who calls another user of basic telephony service through mobile cellular network within the same and different operator; (3) (3) Local permanent cellular use cost as referred to in paragraph (1) letter b shall constitute cost charged to the user of basic telephony service through mobile cellular network, who calls the user of basic telephony service through local permanent network existing in local charging zone of permanent network; (4) Long distance permanent cellular use cost as referred to in paragraph (1) letter c shall constitute cost charged to the user of basic telephony service through mobile cellular network, who calls the user of basic telephony service through long distance permanent network existing in long distance charging zone of permanent network; (5) International permanent cellular use cost as referred to in paragraph (1) letter d shall constitute cost charged to the user of basic telephony service through mobile cellular network, who makes an international call. CHAPTER III CHANGE RATE FORMULA FOR BASIC TELEPHONY SERVICE THROUGH MOBILE CELLULAR NETWORK Article 4 (1) Formula of change rate calculation shall apply floor 7

8 price; (2) Formula of change rate calculation as referred to in paragraph (1) shall follow the following provisions: a. Cellular use cost: b. Local permanent cellular use cost: c. Long distance permanent cellular use cost: Floor price = Origination Cost + Termination Cost Floor price = Origination Cost + Termination Cost of Local Permanent Network Floor price = Origination Cost + Termination Cost of Long Distance Permanent Network d. International cellular use cost: Floor price = Origination Cost + Termination Cost of International Permanent Network (3) The calculation floor price as referred to in paragraph (2) shall apply to all types of basic telephony service through mobile cellular network, both post-paid and prepaid users; (4) Change of activity fee shall be determined by operators, by enclosing the structure of activation cost and calculation thereof; (5) Change of monthly subscription fee shall be determined by the operators, by enclosing the structure of monthly subscription fee and calculation thereof; (6) In the implementation thereof, change rate shall be determined by bundling system of several types of 8

9 origination and termination, by calculating factor routing projection from historical data one year before the year of implementation of change rate. Article 5 Change rate based on the change rate calculation formula as referred to in Article 4 paragraph (2) shall be determined annually, or every determination of interconnection cost amount. CHAPTER IV PROCEDURE FOR STIPULATION OF CHANGE RATE OF BASIC TELEPHONY SERVICE THROUGH MOBILE CELLULAR NETWORK Article 6 Each operator of basic telephony service through mobile cellular network shall submit change rate plan to BRTI within at 20 (twenty) working days before the date of publication. Article 7 (1) Change rate plan of dominant operator shall be approved by BRTI; (2) The change rate plan as referred to in paragraph (1), shall enclose calculation according to the change rate calculation formula as referred to in Article 4 paragraph (2); (3) BRTI shall ask the dominant operator to recalculate the change rate plan as referred to in paragraph (2); (4) During the recalculation process as referred to in paragraph (3), the rate adjustment plan shall not be 9

10 implemented; (5) If BRTI fails to ask for the recalculation as referred to in paragraph (3) within 20 (twenty) working days as of the date of receipt of the change rate plan, the change rate plan shall be considered approved and can be published by the dominant operator. Article 8 Operator of basic telephony service through mobile cellular network shall publish the change rate plan to the public within at least 30 (thirty) working days before it is implemented. Article 9 The dominant operator as referred to in Article 7 paragraph (1) shall be determined by BRTI. CHAPTER V CLOSING PROVISIONS Article 10 By the effectiveness hereof: a. Decree of the Minister of Tourism, Post, and Telecommunication Number KM. 27/PR.301/MPPT-98 on Service Rate for Mobile Cellular Telecommunication Connection; b. Decree of the Minister of Communication Number: KM. 79 of 1998 on Service Rate for Prepaid Mobile Cellular Telecommunication Connection (STBS). shall be declared null and void. 10

11 Article 11 This regulation shall enter into full force and effect as of the promulgation date. Promulgated in : Jakarta On : February 28, 2006 MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY SOFYAN A. DJALIL CC: 1. Coordinating Minister for Economics 2. Minister of Law and Human Rights; 3. KPPU 4. YLKI; 5. Secretaries General, Inspectors General, Directors General, Expert Staff of Legal Department, and Departments Heads within the Ministry of Communication and Information Technology; 6. Bureau Heads and Center Heads within the Secretariat General of the Ministry of Communication and Information Technology. 11

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