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CHEAP BUT MISLEAD


Several telecommunication operators both cellular and fixed wireless access (FWA) conduct a cheap tariff promotion including free tariff promo. Be careful, not all information is correct.

The exhibition is a part of telecommunication company effort to get in touch with new customers. The company must be creative to develop their networks and consumers. So, they increase the selling point and the income from new customers. As a result the company revenue will also increase.

PT. Excelcomindo Pramata (XL) , for example, by introducing one of their products, XL Bebas, offer cheap conversation fee: Rp. 25/second since February 10, 2007. However, according Muhammad Jumadi, Secretariat General of Indonesian Telecommunication User Group (IDTUG), said that the fee of Rp 25/second clearly gives psychological effect for consumers. In their mind, they may imagine that the fee is so cheap.

In fact, promo fee of XL Bebas is only for one second. If it is counted for a minute (60 second), the conversation fee may reach Rp. 1.500. It is more expensive than the previous fee which is Rp. 1,284 per minutes. The difference is around 16.8%.

The more increasing may be felt when the customers of XL Bebas call fixed phone (public service terminal number-PSTN) and FWA. Previously, the XL Bebas fee to PSTN and FWA is only Rp. 800 per minutes. It means, there is a 87.5% increasing in this connection.

Not only XL offer the cheap fee. Fren from Mobile-8, also decide a conversation fee Rp. 7/30 second. The promotion of this fee is big but the other explanation about fee is made with smallest font. It explains that the fee may be valid after the conversation reach 120 second. During the previous two minutes, Fren conversation fee is noted Rp. 275 per 20 second (prepaid) and Rp. 40 per six second (postpaid).

In addition, Esia from Bakrie Telecom put the fee only Rp. 1,000 per hour. In several Esia ads, there is an explanation with smallest font, if the conversation time does not reach one hour, the fee may be charged is Rp. 50 per minutes.

Indosat also makes similar case. By introducing “StarOne”, Indosat present “Kulonuwon Jogja” until the end of 2006 last year. They put the airtime fee Rp. 99 per hour dan Rp. 200 per Mbps for Internet access. In GSM cellular business, Indosat also have a “Double Free Talk” program which is possible to have free conversation to other Indosat numbers – certain time – or during the range of time in certain days.

Telkomsel, the biggest telecommunication operator in Indonesia, was used to offer free service for prepaid customer until 100 minutes – if the consumers agree to refill the pulse in several times after buying the inaugural card. In addition, there is a program of “Call a certain minutes, Free a certain minutes” that can be accumulated. So if, we call with Telkomsel during 15 minutes, we will have an opportunity to call free around 15 minutes too.

To anticipate mislead advertising or promotion, Agency of Indonesian Telecommunication Regulation (BRTI) ask the telecommunication operators to inform the right things. The operator should explain the terms and condition of the promotion more clearly. So in every promotion, the operator should write disclaimer with big and contrast display similar to the cigarette promotion.

(The info was translated and edited freely from Trust Magazine, No. 24 Year V, April 2-8, 2007. The credit was given to Priyanto Sukandar, Ahmad Pahingguan, Julianto, and Bona Ventura).


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