Indosat warned about lack of fixed network development

The Directorate general of Post and Telecommunications warned PT Indosat last week about perceived sluggishness in the development of its fixed line and fixed wireless (CDMA) networks by comparison to its GSM network.

"The director general met with Indosat officials on Thursday and warned them verbally of the lack of development in its fixed networks, " the directorate general's spokesperson, Gatot S Dewa Broto, told on sunday.


However, the company is not facing any sanctions as it has already met all of the minimum legal requirements, Gatot said, explaining why the warning was giving verbally rather than in writing. Nevertheless, he said that the directorate general suspected Indosat lack of deliberately keeping the development of its fixed networks to a minimum to maintain cost effectiveness, but at the risk of violating its initial development commitment.

S of the end of June, Indosat reported that the total number of subscribes for all of its cellular services including IM3, Mentari, Matrix, and StarOne(CDMA, had risen 44 percent to 20 million over the same period last year.