Recent Developments In Rural Communications Technology

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Recent Developments In Rural CommunicationsTechn
ology
COUNTRY REPORT FOR APT TRAINING COURSE JTEC,
TOKYO JAPAN 18-21 JANUARY 2004
Presented By BERIANTHO HERLAMBANG Universal
Service Section INDONESIA
Directorate General of Post and
Telecommunication
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Indonesia Overview

• The largest archipelago (consists of 17,508
  islands)
• 43.000 Villages/Head Of Kecamatan
• 70.000 Villages
• More than 220 million in population

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Current Condition

• High teledensity in metropolists ( 11 - 25 )
• Voip operator 5 Operator ( Indosat, Telkom,
  Satelindo, Atlasat, Gaharu)
• FWA Operator 3 Operator ( Indosat, Telkom,
  Satelindo)
• Low teledensity in rurals (0.2 )
• 43.022 villages (64.4 out of 66.778 villages)
  have-no telephone access.
• Infrastructures
• 8 millions of fixed line (3 penetration )
• 16 millions of cellular phones users ( 5.5)
• 7.5 Millions of Internet Users.
• Need more investment mostly in villages with
  no-access

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Problems

• Investment on fixed-lines needs high-capital with
  low RoI (Return on Investment)
• Development of fixed lines in rural areas is much
  more expensive (not attractive in business point
  of view)
• Government budgets (APBN) on telecommunication
  development was no longer extended since 1985.

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General Strategy for National Telecom Development
Strategy of Telecom Development
Target the adequacy of telecom and information
access
Telecom development in Non-commercial regions
(USO)
Telecom provisions in Commercial
regions (Competitive / non-USO)
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Regulation in Commercial Regions
Industry Monitoring
- Equal access - Market Openness - Investment
Funding
Decision-making Mechanism
Requires a Strong and Credible Independent
Regulatory Body (IRB)
Establishment of IRB by strengthening the
existing regulatory body
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USO Development
Targets
Funding
Technology

• - Rural villages
• Access Communal
• Household
• - Service advancement

- Operator contribution - Govt. budget - Local
contribution - Grant
Government Duty c.q DG of Post and
Telecommunication
Supported by - Telecom Operators - Local
Government
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USO as Bridging The Divide

• Infrastructure-wise
• ? building of infrastructure required to
  provide access to the community
• Information-wise
• ? socialize new technologies through social
  streams (education, training, seminars)

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Universal Service Obligation(USO)

• USO in Indonesia
• ? Community Access Within Walking Range
• ? Provision of basic telephony services,
• Priority will be given to areas with
• existing technical support (site, electricity,
  and if possible nearest to a telephone central)
• economical potency
• USO will be a long-term, continuous and
• sustainable process

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USO in Indonesia

• By the end of Year 2005 every district capital
  and village in Indonesia will be provided with
  basic telephony service (including fax,dial-up
  internet and low speed data/9600 Bps)
• Each village will be provided with at least 1
  Line Unit (Universal Access)
• Normal rate will be applied and certain
  additional costs (such as frequency use,
  interconnection) will be temporarily waived
• USO is expected to bring positive changes and
  influences to the area so that termination of USO
  status is possible and hence waived costs will be
  applied

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Deployment Scheme
Year I (2003)
Year II (2004)
Year III (2005)
Target 17,000 villages Area Java, Sumatera,
Kalimantan, Eastern Islands Technology
Seluller, Radio Point to point
Target 18,522 villages Area Sumatera,
Kalimantan, Eastern Islands Technology
Target 7,500 villages Area Sumatera,
Kalimantan, Eastern Islands Technology VSAT,
Portable Fixed Satellite(PFS) Operator PSN dan
CSM
The technology to be implemented is based on the
USO regions geographical and infrastructure
characteristics ? alternatives cable
(wireline), wireless (radio), satellite
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USO Funding

• For the 1st year (2003), USO implementation (for
  7,500 villages 870 municipals) will be funded
  by the state budget
• For the years to come, USO will be funded by
  telecom operators by contributing 0.75 of their
  gross revenue (after reduce with Bad debt, and
  Interconnection Fee)

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USO funding scheme 1st year
Communication Sector
State Government
The Kind of Non-Tax State Revenue (PNBP)
The Use Right Costs (BHP)
State Treasury
State Budget
Sector Budget
Local Government
USO
Investment
Land Acquisition
Grant
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USO funding scheme 2nd, 3rd
Communication Sector
State Government
The Kind of Non-Tax State Revenue (PNBP)
USO Contribution 0.75
State Treasury
USO
Local Government
Investment
Land Acquisition
Operation
Maintenance
Grant
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USO Deployment Scheme
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Information-wise

• Education
• School 2000 program, accelerating internet access
  from schools. ICT awareness and capacity should
  be encouraged at the earliest stage possible.
• Internet cafe in schools with
• - Soft loan for computers
• - Free Internet access and 50 discount of local
  access.
• Internet Roadshow
• Seminars and workshops for the society in rural/
  sub-urban areas. The seminars are focused on
  giving fundamental information about the internet.

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THANK YOU