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Indonesia - Telecommunications Infrastructure and Forecasts

Indonesia, with its distinctively challenging geographical character, has been working over a long period to put viable and progressive telecom infrastructure in place. When the government launched its Joint Operating Service (KSO) strategy, it had high hopes that this would be the main driver for the development of the national fixed-line telephone network. The KSO program fell well short of expectations. The country has since made a fresh start on the building of its telecom infrastructure. Invigorated by the highly successful mobile segment on the back of increased competition in the marketplace, the country’s telecom industry has found a new dynamic. This report looks at progress in building infrastructure, in particular the development of the fixed-line network, and describes some of the changes, as the industry picks up momentum again.

Key developments:

Growth in the fixed-line market continues to be almost totally in fixed wireless subscribers. Indosat’s efforts to be involved in the country’s fixed line market suffered a major setback in 2011 when its customer base fell dramatically. The government has licensed a consortium of seven Indonesian companies to build the US$1.5-billion 34,000 km Palapa Ring optical fibre cable network. PT Telkom announced plans in 2011 to launch the Telkom 3 satellite.

Companies covered in this report include:

PT Telkom; PT Indosat; Bakrie Telecom (BTEL); Qatar Telecom (QTel); Satelindo; SingTel; ThaiCom.

1. Synopsis
2. National infrastructure
2.1 Overview
2.2 Background to development
2.3 Fixed-line statistics
3. Forecasts – fixed-line market: 2015; 2020
3.1 Infrastructure development
3.1.1 Palapa Ring Project
3.2 Joint operating service (KSO) ventures – five-zone plan
3.2.1 The KSO strategy
3.2.2 Difficulties with the KSOs
3.2.3 Restructuring of KSOs
3.3 Rural telephony
3.3.1 Village Phone Program (VPP)
3.4 Wireless Local Loop (WLL)
3.4.1 Background
3.4.2 PT Telkom
3.4.3 PT Indosat
3.4.4 Bakrie Telecom
3.5 Telecom towers
4. International infrastructure
4.1 International gateway exchanges
4.2 Submarine cable networks
4.2.2 Thailand-Indonesia-Singapore (TIS)
4.2.3 Dumai-Melaka Cable System (DMCS)
4.2.4 Batam Singapore Cable System (BSCS)
4.2.5 Sistem Komunikasi Kabel Laut (SKKL)
4.2.6 Java-Sumatra-Kalimantan (JaSuKa) network
4.2.7 SEA-ME-WE 4 cable
4.3 Satellite networks
4.3.1 Satellite communications
5. Notes on scenario forecasts
6. Related reports
List of Tables, Charts and Exhibits
Table 1 – Fixed-line subscribers, annual change and teledensity – 1995 - 2012
Table 2 – Fixed lines subscribers and annual change by operator – June 2012
Table 3 – Fixed wireless v. wireline subscribers – 2011
Table 4 – Forecast of fixed line subscribers and penetration rates – 2015; 2020
Table 5 – Planned five-year USO deployment of lines for villages – 2006 - 2010
Table 6 – Fixed-wireless (WLL) subscribers – 2003; 2007 - 2012
Table 7 – Fixed-wireless (WLL) subscribers by operator – June 2012
Table 8 – PT Telkom’s fixed wireless subscribers – 2003 - 2012
Table 9 – PT Telkom fixed-line subscribers - wireless v. wireline – September 2012
Table 10 – PT Telkom – fixed wireless subscribers – September 2012
Chart 1 - Fixed-line subscribers and teledensity – 1995 - 2012
Exhibit 1 – Palapa Ring Project – specification of rings
Exhibit 2 – Indonesian satellites – 2011

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