PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2004 AND 2005, AND FOR YEARS ENDED
DECEMBER 31, 2004 AND 2005 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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49. TELECOMMUNICATIONS SERVICES TARIFFS continued
Interconnection Tariffs
The Government establishes the percentage of tariffs to be received by each operator in respect of calls that transit multiple networks. The Telecommunications Law and Government Regulation
No. 52 of 2000 provides for the implementation of a new policy to replace the current revenue sharing policy. Under the new policy, which has not yet been implemented, the operator of the network on
which calls terminate would determine the interconnection charge to be received by it based on a formula to be mandated by the Government, which would be intended to have the effect of requiring
that operators charge for calls based on the costs of carrying such calls. On March 11, 2004, the MoC issued Decree No. 322004, which stated that cost-based interconnection fees shall be applicable
beginning January 1, 2005. The effective date of this decree was subsequently postponed until January 1, 2007 based on the Ministry Regulation No. 08PerM. KOMINF022006 dated February 8,
2006.
i. Interconnection with Fixed line Network
The Government’s National Fundamental Technical Plan set forth in Decree 4 of 2001, as amended by Decree 28 of 2004, sets out the technical requirements, routing plans and numbering
plans for interconnection of the networks of various telecommunications operators among themselves and with the Company’s fixed line network. Under the National Fundamental
Technical Plan, all operators are permitted to interconnect with the Company’s fixed line network for access thereto and to other networks, such as international gateways and the networks of other
cellular operators. In addition, cellular operators may interconnect directly with other networks without connecting to the Company’s fixed line network. Currently, the fees for interconnection
are set forth in Decree No. 5061997, Decree No. 461998, Decree No. 371999 and Decree No. 302000.
Fixed line Interconnection with Indosat.
Currently, the fixed line interconnection between the Company and Indosat is generally based on their agreement signed in 2005. Pursuant to the
agreement between the Company and Indosat, for interconnection of local and domestic long- distance calls, the operator of the network on which the calls terminate receives an agreed amount
per minute.
Other Fixed Wireline Interconnection.
Since September 1, 1998, the Company has been receiving a share of the tariffs from Batam Bintan Telekomunikasi “BBT”, which is a local
operator with a special coverage area on Batam Island, for each successful call that transits or terminates on the Company’s fixed line network. Under the interconnection agreement, for local
interconnection calls, revenues are shared on a “sender keeps all” basis. For local calls originating on BBT’s network terminating on a cellular network and vice versa which transit through the
Company’s fixed line network, the Company receives an agreed percentage of the prevailing tariff for local calls. For interconnection of domestic long-distance calls, the operator of the
network on which the calls terminate or transit receives an agreed percentage of the prevailing long-distance tariff. In addition, BBT is to receive a certain fixed amount for each minute of
incoming and outgoing international calls from and to BBT that transit through the Company’s fixed line network and use the Company’s IDD service and 50 of the prevailing interconnection
tariff for incoming and outgoing international calls that transit through the Company’s fixed line network and use Indosat’s IDD service.
