TOWARD NATIONAL CONNECTIVITY CHALLENGE & OPPORTUNITY

Dr. Setyanto P. Santosa

Chairman

MASTEL (the Indonesia’s ICTs Society)

Jakarta 21 September 2011

STRATEGIC STEPS IN INDONESIA TELCOMS HISTORY

1974 – Satellite as National Communications System

1984 - Replace Analog by Digital System

1994 - GSM as standard of Mobile Phone

2004 - Era Competitions

2009 - Beginning of Broadband Era

2011 - Meaningful Broadband

Global Competitive Index (2010-2011)

The Global Competitiveness Report 2010-2011 – World Economic Forum

E-Government Index & Human Capital Index

Rank Country E-Gov Devlopmt Human Capital

1. Korea 1 7

2 Singapore 11 48

3 Malaysia 32 96

4 Thailand 76 66

5 Philippines 78 78

6 Viet Nam 90 114

7 Indonesia 109 97

8 Cambodia 140 135

9 Myanmar 141 127

10 Lao PDR 151 140

This year, a World Bank report reveals the impact of broadband on growth in 120 countries. Its

analysis revealed that each 10 percentage points of broadband penetration results in 1.21%

increase in per capita GDP growth in developed countries, and 1.38% increase in developing

countries. Consider the example of broadband deployment in China.

Government's investment accelerates for the GDP contribution, competitiveness, job creation & Social Benefit

National Broadband Networks Deployment

Impact on GDP

3.9%

2.5%

1.3%

0.8%

0.8%

0.6%

0.4% EIU (NZ)

Brooking Institute (US)

Criterion Study (US)

Government (US)

Government (Korea)

CEBR (Scotland)

Garnter (USA)

Avg.

1,46%

(% Increases within five years)

Source: Booz & Company Analysis

Socio-Economic Benefits

• Innovation

• Labor Productivity

• National Competitiveness

• Resources Utilization

• Social Inclusion

• Lifestyle

NG-NBN is valuable for Economy, Society & Industry

5

Challenges in Deployment of Broadband Access

• Economic

– Most populated area first

– GDP per capita

– The price of monthly

subscription fee

– PC penetration

– Education and other

socioeconomic factor.

• Technology

– Inherent limitation in either

performance or capacity

(last mile)

– LOS location from BTS for

wireless access

National Broadband Network Indonesia – GPT for Indonesia

Maste

r Pla

n

Ekonom

i

RPJM

N

2010-2

014

Nationwide (30% people and 30% coverage

in 2014) to ???

> 2 MBps, both SLA based and Best effort

Connectivity (Open Access) and Ecosystem

2014 and beyond GPT

40 cities, 3% penetration

Less focus on SLA

Focus on connectivity

Broadband

1. MP3EI momentum to deploy NBN

2. Leverage NBN to spread the wealth to surrounding people (RPJMN)

3. Extend to Nationwide coverage for Knowledge Based Society.

8 BAU

Meta Infrastruktur

BE / KBS

Supply Content and Demand

Connectivity : IP Backbone Development

Telkom True Broadband Development 2011-2015

Nusantara Super Highway Development

• Koridor Ekonomi 1 Sumatra

• Koridor Ekonomi 2 Jawa

• Koridor Ekonomi 3 Kalimantan

• Koridor Ekonomi 4 Sulawesi & Maluku Utara

• Koridor Ekonomi 5 Nusa Tenggara

• Koridor Ekonomi 6 Papua & Maluku

Broadband for Government

Broadband for Enterprise Service

Broadband for SME

Broadband for Home Digital

Environment

“Nusantara Super Highway”

Big Pipe Broadband Acces

“Nusantara Super Highway”:

Big Pipe Metro-E

“Nusantara Super Highway”

Big Pipe IP MPLS TELKOM TRUE BROADBAND

9

Nusantara Super Highway: True

Broadband Access

• Kapasitas dalam satuan Homepass

• Investasi dalama satuan Milyard Rupiah

• s.d. tahun 2011 Kapasitas : 1.75 Juta Homepass dengan Investasi : Rp. 3,50 T

• s.d. tahun 2012 Kapasitas : 4,60 Juta Homepass dengan Investasi : Rp. 8,05 T

• s.d. tahun 2013 Kapasitas : 7,85 Juta Homepass dengan Investasi : Rp.12,95 T

• s.d. tahun 2015 Kapasitas : 10,85 Juta Homepass dengan Investasi : Rp.17,19 T

• s.d. tahun 2012 Kapasitas : 13,00 Juta Homepass dengan Investasi : Rp.21,19 T

Pembangunan True Broadbad Access (20 MBps & 100 MBps) 2011-2015

MEANINGFULL BROADBAND

The more usable and affordable is the system the more it becomes possible to activate the potential of the technology to empower users”.

11

Usable

determined by the total cost of ownership (COO), incorporating the following five factors: • Bandwidth • Last Mile Access • Prepaid and Postpaid Subscriber Services • Device Use • Software • Taxes and any other charges

Affordable involves calculating the real cost of current ownership and projecting their future changes. It includes access to training, upgrades, technical support, information in local languages, telecenters, reliable electricity, etc.

Empowering

refers to “engaged learning” and “learning how to learn.” Once empowerment becomes a sustained experience, one enters a virtuous circle of continuous learning that brings benefit to self and others. Empowerment can be measured through new emerging methods from the field of Human Computer Interaction (HCI.) Designers can measure empowerment through the use of self reports, through second person observation (drawn from the field of ethnography), and through objective third person measures (now being developed in neuro-engineering)

Components

SERVICE & CONTROL ACCESS

Optic IP/MPLS

Optics backhaul and backbone

BACKHAUL EDGE & CORE BACKBONE

Open API

OSS/BSS

Ekosistem

Merah Putih

Ekosistem

Merah Putih Media

Smart Grid

Cloud E-Indo

Appl Dev

FTTx

BB Wless

IP MW

MetroE

Serv Node

Data Center retailer advmnt

Media

Ekosistem MERAH PUTIH

Access Wireless @700 MHz 60 mio sub (40-50K large Cells) ~50 K small cells)

Access FTTx

2-15 mio lines

BackhaulFO

33 cities

Backhaul MW

40K hopes

CO

33 cities

FO bakcbone

submarine

Linking major

islands & cities

FO backbone terrestrial

FO to regencies

Service Control:, Data Center,

Control Plane, OSS &

Application, Open-API:

Open for creative Industry

Ekosistem

MERAH PUTIH

Ekosistem

MERAH PUTIH

13

40% 60%

Connectivity

(BroadbandInfrastructure)

Ecosystem (Services/Application/ Content, Devices,

Capacity Development of people (R&I,

Manufacturing, Home Industry/Enterpreneurship,

S&M, Training), ICT Leadership in the region (traffic,

specific purpose application).

Open Access

ASEAN ICT Vision and Strategic Thrusts

“Towards an Empowering and Transformational ICT: Creating an Inclusive, Vibrant and Integrated ASEAN”

Economic Transformation People Empowerment & Engagement Innovation

Infrastructure Development

Human Capital Development

To promote trade, investment and entrepreneurship in the ICT sector To build an ICT engine for sectorial transformation

To enhance quality of life through affordable and equitable ICT

To nurture a creative, innovative, and green ICT sector

To build the infrastructure backbone, and enabling policies and legislation

To develop a skillful ICT workforce and knowledgeable community

1 2 3

4

5

Bridging the Digital Divide

To elevate countries and people through ICT capabilities

6

Selected Sectors Impacted: Transportation Agricultural Manufacturing

Selected Sectors Impacted: Healthcare Education Media & Entertainment

Financial Services

SME

Selected Sectors Impacted: ICT New Media Content

Research & Development Financial Services

HOW TO MAXIMIZE THE ECONOMIC IMPACT OF MOBILE COMUNICATION gy

Four Waves of Communication Technology

Simple Access

Universal Service

Usage

Provision of Complementary Skills & Assets