Antitrust Body Puts Telkom on Trial for IndiHome Service

Indonesia's anti-monopoly body, the Business Competition Supervisory Commission, or KPPU, held on Tuesday (21/02) a hearing on alleged monopoly practices in cable broadband business by state-owned Telekomunikasi Indonesia, the country's largest telecommunications company. (ID Photo/Emral Firdiansyah)

By : Jakarta Globe | on 11:20 PM February 21, 2017
Category : Business, Corporate News

Jakarta. Indonesia's anti-monopoly body, the Business Competition Supervisory Commission, or KPPU, held on Tuesday (21/02) a hearing on alleged monopoly practices in cable broadband business by state-owned Telekomunikasi Indonesia, the country's largest telecommunications company, Kontan.co.id reports.

KPPU said the company, known as Telkom, which virtually controls all landlines in the country, has abused its position to force customers to subscribe to its own broadband services.

In December 2013, Telkom introduced IndiHome Triple Play that bundles Telkom landlines with its cable broadband and cable TV services.

"The customers are forced to use all three services, they cannot choose," M. Noor Rofieq, chief investigator of the KPPU, said as quoted by Kontan.

Investigators presented a petition from 23,028 customers who in 2015 demanded that Telkom cease the practice, and a recording of a conversation with Telkom customer service, in which the IndiHome policy was explained. In May, the number of Telkom IndiHome subscribers reached 1.06 million, according to the investigators.

Muhtar Ali, Telkom's lawyer, said the company denies the accusations, arguing that IndiHome uses internet protocol phone service, not fixed line services.

The next hearing will be held on March 1, when Telkom will present its defense.

The commission has recently dealt with a string of high-profile monopoly or cartel practices. On Monday, it found that Japanese motorcycle makers Yamaha and Honda were fixing their scooter prices. Last year, it fined 11 poultry producers for colluding to control the prices of chickens.

XL Axiata and Indosat Ooredoo, Indonesia's second and third largest mobile operators, are also under KPPU investigation for allegedly fixing prices, service supply and geographical spheres of influence to avoid head-to-head competition.

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