Assessing the benefits of reducing leased-line prices in India and Indonesia

Posted on November 12, 2008  /  0 Comments

A study by Professor Rajat Kathuria, ICRIER and International Management Institute New Delhi, is now available. In the paper, Professor Kathuria seeks to

assess the impact of decline of leased line prices in Indonesia. It tries to capture this impact through qualitative as well as quantitative impacts. Since the decline in prices occurred recently (2008 April), the period post the decline is not large enough to do a meaningful time series analysis. However, qualitative assessment is made and the impact is compared with India, where decline in leased line prices led to substantial benefits to user industries. Of particular significance is the trigger to the price decline in Indonesia. The process was set in motion by a presentation of research results by LIRNEasia in Jakarta in October 2005 and culminated with the incumbent operator PT Telkom and others reporting a 69-83 per cent reduction in leased line prices in April 2008 . Annex I provides a chronology of the sequence and section 4 in the paper draws interesting comparisons with a similar process in India.

The paper is here.

Comments are closed.