Heru Sutadi presentation regarding broadband penetration in Indonesia and especially how regulation foster emerging ICT business

1. RETHINKING REGULATION
TO FOSTER EMERGING
TELECOMS BUSINESS
Heru Sutadi
The Next Billion
3 November 2011

2. MILLENNIUM DEVELOPMENT GOALS
2
0
1
5

3. ACCELERATED ACHIEVEMENT OF MDG
Broadband Inclusion for All
effective and sustainable solutions to the great global
challenges of the 21st Century in poverty, health,
education, gender equality, climate change and the
seismic demographic shifts in youth and ageing populations

4. BROADBAND FOR GROWTH
+10% BROADBAND +1% GDP
GROWTH GROWTH
+1000 BROADBAND +80 NEW JOBS
USERS
The effects depend on the market adaptability to new technologies
Larger effects are likely in countries with competitive and flexible labor markets
Source: Ericsson - Arthur D Litte,2010

5. ASEAN ICT MASTER PLAN 2015
 Ensure affordable broadband access to every
community
 Ensure affordable ICT products
 Ensure affordable and seamless e-services ,
content and applications
 Build trust
 Improve broadband connectivity
 Promote network integrity and information
security, data protection and CERT cooperation
 Bridge digital divide within ASEAN

6. INDONESIAN EFFORT

7. TELECOMMUNICATIONS STATISTIC
Until the end 2010, the status of telecommunication
infrastructure and services are as follows:
Fixed line subscribers (PSTN): 8.429.180 subs
(3.58 %)
Fixed Wireless Access: 31.464.342 subs
(13.28 %)
Mobile: 204.134.459 subs
(86.13 %)
Internet users: 60 Millions
(25,32 %)

8. 2014 TARGETS*
 Broadband penetration min. 30%
 100% fiber optic backbone between the islands
 88% broadband network in municipalities
 Broadband access in 10,85 million household in 2014 and 13
million in 2013
 E-gvernment index 3,4 (GOOD)
* Based on MP3EI (Master Plan for the Acceleration and Expanson of Indonesian
Economic Growth)

9. BROADBAND ACCESS
 We develop wireline and wireless broadband, but mostly in
wireless
 For IMT-2000 2.1 GHz, 3 operator (Telkomsel, Indosat and XL
Axiata) already allocated second 5 MHz carrier. Another operator
also already requested for another 5 MHz and soon will be
allocated. Telkomsel dan XL Axiata already requested for the 3rd
carrier
 Based on e-auction methode for 15 zones, Government awarded
to some company right to use 2.3 GHz spectrum band for BWA,
and already launched for commercial started in the end of June
2010. For 2.3 GHz now its neutral technology
 LTE first trial using existing spectrum frequency band already
done since the end of June 2010

10. INDONESIAN OPERATOR’S ROLE
 Supporting wider broadband infrastructure (USO Program, Backbone
Consortium)
Connecting broadband and societies
Blackberry Community
Data card/dongle community
Enabling content and applications creation
IWIC
Indigo Award
Elevating broadband access for e-governance, e-health and e-education
Electronic identity/E-KTP
Telkom develops national e-health service InsureNet, which is backed by
five state-owned insurance companies
Helping wider e-books access from Ministry of Education
Making broadband pricing affordable (Average unlimited data/Blacberry = USD
10)
Building a global partnership for broadband development
International fiber optic consorsium: AAG

11. 2014 TARGETS*
 Broadband penetration min. 30%
 100% fiber optic backbone between the islands
 88% broadband network in municipalities: 421 in 2014
municiplaities and 446 in 2015
 Broadband access in 10,85 million household in 2014 and 13
million in 2013
 E-gvernment index 3,4 (GOOD)
* Based on Master Plan for the Accelaration and Expansion of Indonesian
Economic Growth

12. STRATEGY
 ICT Fund
 Spectrum refarming
 Migration from analog TV to Digital TV
 Broadband Service Obligation
 Infrastructure sharing and open access
 Local content development
 Demand–side program: e-government, e-health, e- education
 Optimizing the utilization of existing financing
 Government and private partnership

13. Converged Regulation By
2014

14. T
H
A
N
K
y
Heru Sutadi O
Email: herusutadi@hotmail.com
Twitter: @herusutadi
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