Licenses have been granted to consortium members for building the Palapa Ring–backbone that will connect the Eastern part of Indonesia that currently relies on satellites with the rest of the country. It is not clear how the licenses were granted and what are the fees and obligations of the license holders. Furthermore, technical and financial feasibility studies are yet to be completed. No access regimes have been developed that will govern how non-consortium members will be able to access the Palapa Ring and on what terms. There couldn’t be a worse possible way of launching such a complex, capital-intensive project that is supposed to transform the ICT infrastructure of Indonesia.
From the Daily Mirror (Sri Lanka) of 10 March 2006: “Minister Bogollagama also noted that the government was planning to construct a fibre optic network in Jaffna to introduce the Business Process Outsourcing industry to the area.” Jaffna is currently connected to the rest of Sri Lanka and the world by satellite. It is intriguing to speculate how the Minister’s fiber optic network will function and who will manage it. One assumes that for it to be of use for the BPO industry, the Minister’s fiber will have to connect to another fiber somewhere. Will this be overland, along the A9 and through LTTE controlled territory or undersea?