Achieving greater efficiency in Indonesian telecommunications: is the Indonesia broadband plan the answer?

Crawford School of Public Policy | Arndt-Corden Department of Economics

Event details

ACDE Seminar

Date & time

Tuesday 26 July 2016
2.00pm–3.30pm

Venue

Coombs Seminar Room E, Coombs Building 9, Fellows Road, ANU

Speaker

Rob Albon, Australian Competition and Consumer Commission (ACCC).

Contacts

Ross McLeod

Twenty years ago the Indonesian Government sought better outcomes in telecommunications than were being delivered by its state-owned statutory monopoly system. Reforms made over 1995 to 2001 included greater competition, foreign entry, corporatisation, and more independent regulation. Emerging wireless technologies ‘leap-frogged’ over the limited fixed-line telecommunications network; growth in subscriptions and use was rapid but haphazard (some areas having ‘too many’ services and others none).

Consolidation commencing in 2009 involved mergers and acquisitions, tower sharing, and improved spectrum allocation. Mobile broadband heralded even more fixed-to-mobile substitution, featuring the passing of the previously ubiquitous Warnets and a decline in Telkom’s fixed-line subscriptions. While mobile telecommunications continued to spread further and penetrate more than fixed-line, substantial issues of limited coverage and adoption remained in both. Missing links in the Palapa Ring and the absence of an electricity supply are amongst inhibiting factors in servicing remote areas. An ‘aspirational’ Indonesia Broadband Plan (IBP) has recently emerged, led by Bappenas. But, rather than the IBP, should there be a comprehensive review based on: economic efficiency enhancement; addressing inherent market failures; technological neutrality; and more cohesive governance?

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