Leased Line Tariffs to be Regulated Bisnis Indonesia, September 27, 2006 JAKARTA: The Indonesian Telecommunication Regulatory Body (BRTI) will regulate the tariffs for leased lines through a ministerial decree, which is expected to be signed end of this year. The regulator most likely will force network operators to lower leased line tariffs by more than 50 percent to push internet penetration in Indonesia. BRTI said this in a public meeting with Mastel, internet service providers, and network operators yesterday. Heru Sutadi, a member of BRTI, expected a decline of more than 50% in the tariffs will increase ICT usage, internet interconnection, telephone penetration and increase the number of internet users in Indonesia. “The regulator expects the decline in leased line tariffs will be followed by the acceleration of local internet content, so that bandwidth doesn’t get used outside the country and internet tariffs can drop significantly,” he said yesterday.
Internet Providers Criticize Leased Line Tariffs Bisnis Indonesia, Sept. 26, 2006, T2 JAKARTA: The Association of Indonesian Internet Service Providers urge network operators to lower leased line tariffs to allow a healthy competition in providing Internet services for retail customers. Chairman of the Association Sylvia W. Sumarlin said that network operators, which also provide direct internet services to customers, have disturbed ISP businesses. “Every day, a lot of ISP customers switch to network operators because they provide cheaper tariffs to access Internet,” she said to Bisnis yesterday.
Inadequate backbone infrastructure in Indonesia has been widely regarded as crippling its telecom sector. Uneven development of the backbone has meant that much of the East of the country has no fiber-optic based backbone network and those islands have to rely on more expensive satellite links. Poor long-haul domestic infrastructure has meant that many parts of the country do not have access to basic communication and those that are connected have some of the world’s highest leased line and Internet prices as my earlier study shows. The Indonesian government’s ambitious Palapa Ring project to create a fiber ring connecting the major islands had been shelved post the 1997 Asian financial crisis. Recently, however, efforts have been made to revive a modified version of the earlier vision.
Dr. William Melody: Think of any of the new technologies and in most countries it’s illegal. The laws are written to preserve things that are inherited, inherited regulation. The barriers to advancement are inherited regulation. Dr.
Provisional Mission Statement: Improving the lives the people of Asia – by making it easier to use the information and communication technologies they need; by changing the laws, policies and regulations to enable those uses; by building Asia-based human capacity through research, training, consulting and advocacy. Why LIRNEasia? Enormous amounts of money are invested annually in ICTs. The potential of information and communication technologies, or ICTs for economic and social progress is substantial. ICTs aren’t necessarily the answer to higher incomes and development in itself; but together with other factors, they provide a means to improve people’s capabilities and knowledge so that they may better their lives.