RETHINKING REGULATION TO FOSTER EMERGING TELECOMS

BUSINESS

The Next Billion 3 November 2011

Heru Sutadi

MILLENNIUM DEVELOPMENT GOALS

2015

ACCELERATED ACHIEVEMENT OF MDG

Broadband Inclusion for AllBroadband 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

BROADBAND FOR GROWTH

+10% BROADBAND GROWTH

+1% GDP GROWTH

+1000 BROADBAND USERS

+80 NEW JOBS

Source: Ericsson - Arthur D Litte,2010

The effects depend on the market adaptability to new technologiesLarger effects are likely in countries with competitive and flexible labor

markets

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

INDONESIAN EFFORT

TELECOMMUNICATIONS STATISTICUntil 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 %)

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)

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

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

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 Based on Master Plan for the Accelaration and Expansion of Indonesian Economic GrowthEconomic Growth

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

Converged Regulation By 2014

THANK

yOu

Heru SutadiEmail: herusutadi@hotmail.com

Twitter: @herusutadi