Update on Indonesia Digital TV Market 2016

© Satriyo Dharmanto 2016 Business Opportunities in Digital TV

Satriyo DharmantoBusiness Opportunities in Digital TVJakarta, 30 Aug 2016

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http://www.lg.com/id/press-release/lg-electronics-indonesia-dukung-percepatan-migrasi-tv-digital-di-indonesia


AGENDA

Hand eld

Indonesia Towards TV Digital

Spectrum Frequency Allocation

Existing Pay TV Industries

Indonesia OTT Experiences

5G Opportunity for digital Broadcasting

Global ICT Figures



TV DIGITAL

Terrestrial Hand Held Satellite Cable IPTV OTT


ICT is Driving Force Behind Economic Growth

Source: http://www.worldbank.org/

Technological progress is a considerable driving force behind economic growth, citizen engagement and job creation.

Information and communication technologies (ICTs), in particular,

are reshaping many aspects of the world’s economies, governments and societies.

In developing countries, public officials, businesses and citizens are working together to harness the transformative power of ICTs to make services more efficient, catalyze economic development and strengthen social networks.

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ICT Facts & Figures15 years of ICT growth

There are more than 7 billion mobile cellular subscriptions, corresponding to a penetration rate of 97%, up from 738 million in 2000

Mobile broadband is the most dynamic market segment; Mobile broadband penetrationreaches 47% in 2015, a valuethat increased 12 times since 2007The proportion of householdswith Internet access at homeincreased from 18% in 2005to 46% in 2015

The proportion of thepopulation covered by a 2Gmobile-cellular network grewfrom 58% in 2001 to 95%in 2015

Source: ITU.Note: * Estimates.

3G mobile-broadband coverage is extending rapidly and into the rural areas

ICT Facts & Figures

By end 2015, 34% ofhouseholds in developingcountries have Internetaccess, comparedwith more than 80% indeveloped countries

Percentage of households with Internet access

In least developedcountries (LDCs), only7% of householdshave Internet access,compared with the worldaverage of 46%

ICT Facts & Figures

Source: ITU. http://www.itu.int/

Percentage of individuals using the Internet

ICT Facts & Figures

Internet penetration indeveloping countriesstands at 35%; LDCs lagbehind with only 10%


Mobile broadband subscriptions

ICT Facts & Figures

Mobile-broadbandpenetration levels arehighest in Europe andthe Americas, at around78 active subscriptionsper 100 inhabitants


Fixed-broadband subscriptions

ICT Facts & Figures

Fixed-broadbandpenetration remains atless than 1% in LDCs

Africa and the ArabStates stand out asthe regions with thefewest fixed-broadbandsubscriptions per 100inhabitants, at lessthan 1 and less than4, respectively


Fixed broadband subscriptions: developing countries lag behind as prices stagnate

ICT Facts & Figures

Fixed-broadbanduptake remains slow indeveloping countriesand particularly in LDCs.



AGENDA

Indonesia Towards Digital TV



Social Media, The most active communication tools

Digital Phenomenon, to reach 100Mn users:-Telephone (75 Yrs)-Television (20 Yrs)-Mobile (16 Yrs)-Facebook (4 Yrs)-Instagram (2 Yrs) -Pokemon Go (2 weeks)


http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjf2LbBiKrJAhXJCywKHYoxDzYQjRwIBw&url=http%3A%2F%2Fwww.memeworx.co.za%2Fservices%2Fsocial-media-marketing%2F&psig=AFQjCNEcFs1q0-nb3mvQY5kXMKI2aheJAg&ust=1448489082069236

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https://upload.wikimedia.org/wikipedia/en/c/c4/Telkom_Indonesia_2013.svg

http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjg2rzhjarJAhWJmHIKHYLVC34QjRwIBw&url=http%3A%2F%2Fmyrepublic.flazznetworks.com%2F&psig=AFQjCNGF9JlwNe6oWWwq88AWFzLAMp_VjA&ust=1448490496325078

http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwicsaTcyObNAhXMDSwKHYeuDEUQjRwIBw&url=http://www.telkom.co.id/products/my-broadband/indihome&psig=AFQjCNH55HdOe_jy02ETKZu-4RLGD-oRhg&ust=1468160018612230

http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwipuofL3uPOAhVGIpoKHc_9BzIQjRwIBw&url=http%3A%2F%2Fekbis.sindonews.com%2Fread%2F995604%2F150%2Fsmartfren-buka-galeri-baru-1430359806&psig=AFQjCNFwhTRTAAFlWJpN_6azNxrFAojD8A&ust=1472460934818315

http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiUq4vHhOjOAhVLFCwKHZ0UA7AQjRwIBw&url=http%3A%2F%2Findianexpress.com%2Farticle%2Flifestyle%2Fhealth%2Fpokemon-go-can-improve-health-says-expert%2F&bvm=bv.131286987,d.c2I&psig=AFQjCNGpODOK9sVBr-x2cv-pKtE0XTMpxg&ust=1472608160286883


SEA ICT spending in 2015

(Source: IDC)



Typical Diagram of Analog Terrestrial TV


© Satriyo Dharmanto 2016 Business Opportunities in Digital TV16

No. of Transmission sites

Current Analog Terrestrial TV Network

376376

5252

4141 43434747

4040

3131

2626

3030

2727

5252



• Adi TV • Agropolitan TV • Amuntai TV • Bali TV • Bandung TV • Batam TV • Batu Televisi • BiTV • BMS TV • Bogor TV • Borneo TV • Bunaken TV • Cahaya TV •

Cakra TV • CB Channel • CT Channel • Da Ai TV • Deli TV • Dhamma TV • Elshinta TV • Fajar TV • Fativi • Ganesha TV • Gorontalo TV • GOTV • Gemilang TV •

Gajayana TV • GNTV • JakTV • Jogja TV • JTV • Karesidenan TV • Kendari TV • L TV • Logis TV • Lombok TV • Mahameru TV • Malang TV • Minang TV • Makassar TV • Megaswara TV • MQTV • O Channel • PKTV • Pacific TV • Padjadjaran TV • Palembang TV • Pro TV • Rantau TV • Ratih TV • RBTV • Riau TV • Riauchannel •

SAM TV • SJTV • Spacetoon (TV Anak) • SSTV • STV • TA TV • Tarakan TV • Televisi Tegal • Televisi Manado • Tugu TV • TV Borobudur • TVKU

Locals TV


http://id.wikipedia.org/wiki/Berkas:Balitv.gif

http://id.wikipedia.org/wiki/Berkas:Batamtv.jpg

http://id.wikipedia.org/wiki/Berkas:Gotv.gif

http://id.wikipedia.org/wiki/Berkas:CTV.jpg

http://id.wikipedia.org/wiki/Berkas:Jogjatv.jpg

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http://id.wikipedia.org/wiki/Berkas:Ochannel.jpg

http://id.wikipedia.org/wiki/Berkas:Spacetoon.jpg


Income

About 3000+Digital migration soon

Diversity of TV Operator Income

Government

Private, Advertising

Private, Subscription

Community, TV


http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj5gqPTzebNAhVFDJoKHWknA3MQjRwIBw&url=http://www.iconplusmax.com/skylab/&bvm=bv.126130881,d.bGg&psig=AFQjCNFUEQlqZsEuzgGnZc46jxdOr_Ca2A&ust=1468161409958120

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http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiJhPq8w-TOAhVDDywKHdFqDCsQjRwIBw&url=http%3A%2F%2Fwww.tlcasia.com%2Fmore%2Ffind-us%2F&bvm=bv.131286987,d.bGg&psig=AFQjCNFNqZC67BhgxcY_AzeNUVtB2bkBBg&ust=1472488013024360

http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwi318_8wOrOAhVHN48KHf9LBIIQjRwIBw&url=http%3A%2F%2Fwww.cnnindonesia.com%2Fpage%2Ftentang%2F&bvm=bv.131286987,d.bGg&psig=AFQjCNGAJsX36GNM_O8GJQvn1IRcSilFrQ&ust=1472693494779240


Dominancy of Current TV Ownership

19 Others

01.

02.

03.04.

05.

06.07.


http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiM9J3hw-bNAhUEWCwKHVQsAxQQjRwIBw&url=http://www.gadgetgan.com/mnc-play-media-siap-hadirkan-kecepatan-internet-hingga-200-mbps/8088/&psig=AFQjCNGZzTcDL3CVOMEZCqC8H7K0DuWaSg&ust=1468158755158772



http://vignette4.wikia.nocookie.net/logo-timeline/images/5/53/RTV_Stacked_version.png/revision/latest?cb=20140826065953

https://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwih263l4-LOAhWMEywKHWeKAVsQjRwIBw&url=https%3A%2F%2Fid.wikipedia.org%2Fwiki%2FBerkas%3AMoratelindo.jpg&bvm=bv.131286987,d.bGg&psig=AFQjCNGUJkOo25mstAQqy5g0oXbM5wWMfg&ust=1472427955684774

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http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwi318_8wOrOAhVHN48KHf9LBIIQjRwIBw&url=http%3A%2F%2Fwww.cnnindonesia.com%2Fpage%2Ftentang%2F&bvm=bv.131286987,d.bGg&psig=AFQjCNGAJsX36GNM_O8GJQvn1IRcSilFrQ&ust=1472693494779240


Land Area 1,811,570 SQKM

36 Provinces 440 Cities / Districs 746 Different languages 3 Time Zones 17,000 Islands Satellite Network, the main backbone for

TV Broadcasters, first launch 1976 6 hours Dirct Flight Jakarta - Papua

Jakarta

1 2 3 4 5 6

The Indonesian Broadcasting & Cable market had total revenues USD5,4bn in 2015, CAGR14,2%

End 2020 is expected to USD9,3bn (source: Market Research)

Indonesia Geographic


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TVs Milestones in Indonesia

1962 1989 1990

24 Aug 1962

MonopolyEra

1993 1994 2000 2001

Analog TV Era Digital TV Migration

2003 2007

DVB-T As National StandardMinister Decree No.

07/P/M.KOMINFO/3/2007

DecisionMinistry decree, No.

05/PER/M.KOMINFO/2/2012

2012

Basic concept of digital TV FTA

No.39/PER/M.KOMINFO/10/2009

2009

No. 22/PER/M.KOMINFO/11/2011 Implementation of digital TV FTA

No. 23/PER/M.KOMINFO/11/2011 Frequency master plan

20111995 2013 2015 2016

Trial Telecommunication, Informatics and Broadcasting

No. 5 Year 2016MoU TVRI-Content Providers

9 Juni 2016

22 Sept 2015Pending of License

of 33 License holdersDigital TV FTA Operators

Pay TV

2002

Broadcasting Law No. 32/2002

Class ActionATVJI and ATVLI

Digital TV Simulcast & Trial



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https://id.wikipedia.org/w/index.php?title=Berkas:Firstmedia_logo.jpg&filetimestamp=20080301032823&

http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwivptHUh-TOAhUJ3CwKHaPmAN4QjRwIBw&url=http%3A%2F%2Ftripsantai.com%2F&psig=AFQjCNHwBn9rOApKO5ZbS1LEg7qu8p7t2A&ust=1472471961104787

http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj054rwiOTOAhWKjSwKHcJiDwkQjRwIBw&url=http%3A%2F%2Flogonoid.com%2Fastro-logo%2F&bvm=bv.131286987,d.bGg&psig=AFQjCNFiPqqu0FIUh2DhOlRqxG-4G7lTDQ&ust=1472472285207196

http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj5gqPTzebNAhVFDJoKHWknA3MQjRwIBw&url=http://www.iconplusmax.com/skylab/&bvm=bv.126130881,d.bGg&psig=AFQjCNFUEQlqZsEuzgGnZc46jxdOr_Ca2A&ust=1468161409958120



Class Actions For Digital TV Terrestrial

2003 2007

DVB-T As National StandardMinister Decree No.

07/P/M.KOMINFO/3/2007

DecisionMinistry decree, No.

05/PER/M.KOMINFO/2/2012

2012

Basic concept of digital TV FTA

No.39/PER/M.KOMINFO/10/2009

2009

No. 22/PER/M.KOMINFO/11/2011 Implementation of digital TV FTA

No. 23/PER/M.KOMINFO/11/2011 Frequency master plan

No. 35/PER/M.KOMINFO/2012STB for Digital TV Terrestrial

2011 2013 2015 2016

Trial Telecommunication, Informatics and Broadcasting

No. 5 Year 2016MoU TVRI-Content Provider

9 Juni 2016

Court RulingState Administrative Court

(PTUN) Jakarta No.119/G/2014/ PTUN.JKT, 5 Mar 2015.

State Administrative High Court No.140/B/2015/PT.TUN.JKT

7 July 2015

22 Sept 2015Pending of License holder of Digital TV

Operators

2002

Broadcasting Law No. 32/2002

Forming National TeamOn Digital TV

Minister Decree No. 07/P/M.KOMINFO/3/2007

03 April 2013Ruling Justice of

Supreme Court (MA)38 P/HUM/201240 P/HUM/2012

2005

Networks TVPP No. 50/2005

Multiplexing zona 4, 5, 6,

7 and 15Multiplexing Zona 1 & 14



Analog TV (UHF) 478 MHz 806 MHz

Digital TV DVB-T2 Digital Dividend

478 MHz 694 MHz 806 MHz

30%

Additional services, interactive and HDTV Open BTS, Google Loon, Public

Protection and Disaster Relief (PPDR), 5G, NB IoT, Mobile multimedia applications

Mobile communications Wireless broadband access systems

Digital Dividend



Existing Pay TV Industries



Indonesia's pay-TV market is characterized by a very low household penetration, which reached only 3 percent in 2010 and expanding to 7 percent by 2015,

Currently Indovision and Telkomvision/Transvision are dominate the market, with about 60 percent of total pay-TV subscribers in 2015

Some other Pay TV providers via DTH : Orange TV, KVision, OK Vision, Top TV, Topas TV are coloring the market,

Cable TV operators : First Media (Kabelvision), IndiHome, Indosat Mega Media (IM2) and My Republic, (Moratelindo).

The country's geography structure is archipelagic, so DTH technology based will remain the dominant technology, accounting for about 88 percent of total pay-TV subscriptions through 2015.

Pay TV Industries


http://en.wikipedia.org/wiki/File:TelkomVision_Logo.svg

http://en.wikipedia.org/wiki/File:Indosatm2_logo.png

http://en.wikipedia.org/wiki/File:Okevision_Logo.svg

https://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwih263l4-LOAhWMEywKHWeKAVsQjRwIBw&url=https%3A%2F%2Fid.wikipedia.org%2Fwiki%2FBerkas%3AMoratelindo.jpg&bvm=bv.131286987,d.bGg&psig=AFQjCNGUJkOo25mstAQqy5g0oXbM5wWMfg&ust=1472427955684774




Opportunities and Challanges of Pay TV Industries

New Technology

Vendor ompetition

Fast Growth

Global Partners

Piracy

Churn

Unfavorable Regulation

Free fightCompetition

Positives Negatives

Low PenetrationDominancy

Analog FTA-TV



Budget

Mid

Premium

Price of Basic Package

# of Premium Channels


http://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiM9J3hw-bNAhUEWCwKHVQsAxQQjRwIBw&url=http://www.gadgetgan.com/mnc-play-media-siap-hadirkan-kecepatan-internet-hingga-200-mbps/8088/&psig=AFQjCNGZzTcDL3CVOMEZCqC8H7K0DuWaSg&ust=1468158755158772


Frequency Allocation



850 MHz 2,300 MHz

UMTS/LTE 850 MHz

UMTS 900 MHz

LTE 1,800 MHz

Digital Dividend 700 MHz

LTE 2,300 MHz

New New

5G BandsMulti Operators, spectrum Sharing

Source: Denny Setiawan, Directorate of Spectrum Policy and Planning, The Ministry of Information and Communication Technology

Spectrum Frequency Sharing



Indonesia OTT Experiences



Changing Attention Curves



Changing Daily Life



*Covering 40 countries globally. Source: Digital TV

High Growth on OTT



High Growth on OTT

Any distribution technology

All type of devices

OTTCable IPTVTerrestrialSatellite

Smart TV STB

CAMSmartphone and tablet

PC/MAC

Game



High Growth on OTT

Global CDN Providers:Akamai Technologies, Amazon CloudFront, CloudFlare, Cotendo, EdgeCast Networks, AT&T Inc., Deutsche Telekom, KT (formerly Korea Telecom), KPN

Global OTT Providers:



Network Access Point / NAP: current 49 operators Internet Service Providers / ISP: 220 operators Internet Telephony for Public Communications / ITKP: 27 operators Data Communications System / Siskomdat: 11 operators Multimedia Services Licenses IPP : Broadcasting License (Ijin Prinsip Penyiaran)

Source : Kominfo September 2012Current Network Operators:Jartaplokal: 5 licenses Jartaplokal packet switched: 29 licenses Jartup: 72 licenses SLJJ: 2 licenses SLI: 3 licenses Trunking: 3 licenses Seluler: 8 licenses Satelit: 1 licenses.

Licenses Needed to operate OTT

Current Services OperatorsJasa teleponi dasar: 2 licenses Jasnita premium call: 18 licenses Jasnita call center: 10 licenses Jasnita calling card: 9 licenses Jasa multimedia ISP: 230 licenses Jasa multimedia NAP: 48 licenses Jasa multimedia ITKP: 26 licenses Jasa multimedia sistem komunikasi data: 11 licenses.



5G Opportunity for Digital Broadcasting



TV Digital in 5G Era

New Services and Business Models, Cloud RAN Heterogeneous RAN (HetRAN) Integration of Multi-RATs Access Agnostic Network Convergence Sublayer (NCS) Network Management and Orchestration:

Band Width Usage:3G 10MHz; 4G 100MHz; 5G 300 – 1,200MHz Source: Nokia



Set of eight 5G requirements:1 -10Gbps connections to end points in the field (i.e. not theoretical maximum)1 millisecond end-to-end round trip delay (latency)1000x bandwidth per unit area10-100x number of connected devices(Perception of) 99.999% availability(Perception of) 100% coverage90% reduction in network energy usageUp to ten year battery life for low power, machine-type devices

5G Characteristics



Thank [email protected]@conax.com

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Update on Indonesia Digital TV Market 2016

Technology

Transcript of Update on Indonesia Digital TV Market 2016