First Media Says Huge Debt Not Affecting Service, Quality

TEMPO.CO, Jakarta - Cable television and internet service provider Link Net, which operates First Media, said that there are no disruption to their services despite the debt they owe. Link Net owes the payment for frequency of usage rights (BHP) since 2016. Not only First Media, Internux—the organizer of Bolt, is also reported to have similar arrears.

If by November 17, 2018, the two companies—the subsidiaries of the Lippo Group—failed to pay the arrears worth Rp708.4 billion (including penalties), their permit to use the 2.3GHz radio frequency band might be suspended.

The Communication and Information Ministry has warned the company several times, but First Media instead filed a lawsuit to the ministry.

"The lawsuit by PT First Media Tbk is regarding the license of wireless telecommunications services of PT First Media Tbk, and is not related to services and licenses of First Media operated by PT Link Net Tbk (LINK)," Link Net said in a written statement Tempo received on Saturday, November 10.

The company ensured that the lawsuit will not affect the quality of their services.

First Media (IDX: KBLV) is a wireless-based internet service with 4G LTE technology. Meanwhile, First Media—operated by LinkNet (IDX: LINK), is a cable TV services & cable-based High Speed Broadband Internet service that uses Hybrid Fiber Coaxial (HFC) technology. HFC is a technology combining coaxial cable and fiber optic cable as a delivery medium.

First Media services also use Fiber-To-The-Home or FTTH technology, which uses full fiber optic cable as a delivery medium.

"Thus, what the mass media reports [about the debt arrears] does not have any impact on First Media’s services that are enjoyed by customers today," he wrote.

KARTIKA A.