Indonesia May Lose IDR40 Trillion from Broadband

Wandrik Panca Adiguna
Wandrik Panca Adiguna - 20 Desember 2010  |  03:40 WIB

JAKARTA: Indonesia may lose up to IDR40 trillion in revenues per annum if it fails to immediately develop broadband fixed networks access nationwide.

Chairperson for Infrastructure, Services, and Applications at the Indonesian Telematics Society (Mastel) Sumitro Roestam revealed the potential loss was caused by the slow development of broadband networks, especially in the business sector. "If we are later, Indonesia will suffer from a loss of around IDR40 trillion in the next five years," he said on the sidelines of the Broadband Award 2010 last week. At the event attended by the broadband practitioner, the telematics community hoped the government could issue the right regulation to cater to the need for broadband access networks. Based on a survey involving 250 respondents from data service users in the past semester in Jakarta, Surabaya, Medan, Bandung, and Makassar, the best broadband industry players are Telkomsel, Indosat Mega Media (IM2), and Smartfren. Sumitro added the potential loss was based on an annual growth of 3% in the telco sector per annum multiplied by Indonesia's GDP. Hermanudin, General Manager for Business Development at PT Indosat Mega Media (IM2), said only 30% of broadband networks had been really developed in Indonesia so far. "Only around 30% of broadband networks have been developed as well as used by subscribers," he said. Group Head of Product Development at PT Mobile-8 Telecom Tbk Sukaca Purwokardjono stated the government needed to pay attention to the broadband networks development due to its promising growth. Cooperation According to him, telco operators could not work alone and require cooperation from the supporting industries. He exposed Mobile-8, which created a synergy in marketing with Smart Telecom, now provided services to 350,000 broadband subscribers, generating an average revenue per user (ARPU) of IDR80,000 per month. In the meantime, managed service vendor Nokia Siemens Network is optimistic the industry business in Indonesia would keep growing as long as it is supported by efficiency technology. The strategy will help the operators in bolstering their ARPUs. Moreover, the opportunity is claimed to see realization when the 4G or long term evolution. (wiw)

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