Lupa Kata Sandi? Klik di Sini

atau Masuk melalui

Belum Memiliki Akun Daftar di Sini


atau Daftar melalui

Sudah Memiliki Akun Masuk di Sini

Konfirmasi Email

Kami telah mengirimkan link aktivasi melalui email ke rudihamdani@gmail.com.

Klik link aktivasi dan dapatkan akses membaca 2 artikel gratis non Laput di koran dan Majalah Tempo

Jika Anda tidak menerima email,
Kirimkan Lagi Sekarang

Fear of Competition

Translator

Editor

5 August 2016 14:24 WIB

SIM Card packaging activity of the cellular phone operator Telkomsel in Jakarta, January 22, 2016. Tempo/Tony Hartawan

TEMPO.CO, Jakarta - These days, telecommunication has become a basic need. Without it, life would stop in its tracks. Thus, the government's plan to revise the regulation on network operators to make it more beneficial to both consumers and operators must be welcomed. 

During the past year, Communication and Informatics Minister Rudiantara has been busy drawing up the revisions to Government Regulations No. 52/2000 on Telecommunication Operators and No. 53/2000 on the Use of Radio Frequency Spectrum and Satellite Orbit. One of the important changes to be discussed is the possibility of network sharing among operators.

The topic alone implies that there are many interests at stake, perhaps the reason why President Joko Widodo has not signed the two regulations. Reportedly, State-Owned Enterprise Minister Rini Soemarno was not that happy with the revisions. At a glance, her concern that network sharing among operators might be disadvantageous to national companies seemed to make sense. 

However, some have linked her reservations to the clash between Telkomsel, a subsidiary company of Telkom and Indosat Ooredoo, whose majority shares are foreign-owned. The acrimony between the two local network giants surfaced when Telkomsel turned down Indosat's request to rent the former's fiber optic cable network in Maluku, perhaps reinforcing Indonsat's assertion that Telkomsel wants to monopolize the market. Telkomsel currently holds 87 percent of the market outside Java. 

Telkomsel has valid reasons for rejecting. Throughout the last 20 years, Telkom has painstakingly laid down cables both on land and undersea across many parts of Indonesia. No other operator has invested in such massive assets. It is therefore understandable if Telkomsel wants to shake off competitors wanting to ride on its tailcoat even at a price now that the network gateway has been built.

Indosat on the other hand, also has a strong argument. Network sharing is a common practice in today's telecommunication world. The company is also prepared to collaborate with other operators to build fiber optic networks but the current government regulation does not facilitate this. 

The IM2 case is one example of jurisprudence, a nagging issue for operators in the country. In 2013, IM2's CEO Indar Atmanto was sued for going into partnership with another Internet service provider that allegedly caused the state Rp1.3 trillion in losses. Indar was eventually convicted and still languishing in prison. His case is a stark reminder that network sharing needs clear and explicit guidelines.

The government must prioritize consumers' interests first. Given the massive investment needed to build networks, sharing could trim production costs and ultimately consumers' spending. Operators need to come up with innovative measures to maintain efficiency in order to offer competitive tariffs and best services to attract customers who will have a variety of options. 

Network sharing will inevitably become a trend amid increased global inter-connectedness and heightened business competition. The government as a regulator must ensure fair business practices that discourage monopoly through regulations that protect the interests of all stakeholders. (*)

Read the full story in this week's edition of Tempo English Magazine



Jokowi's Hand in the Golkar Party

1 jam lalu

Jokowi's Hand in the Golkar Party

Jokowi has ambitions to take control of the Golkar Party. It is his new way to stay relevant to those in power.


The Backers of Illegal Tin Mining

3 hari lalu

The Backers of Illegal Tin Mining

The Attorney General's Office is investigating alleged corruption over tin mining permits in Bangka Belitung.


The Importance of the Right of Inquiry

4 hari lalu

The Importance of the Right of Inquiry

Jokowi is taking Indonesia right back to the start of the Reformasi era. The right of inquiry could be a way to save democracy.


Funding for the Hasty Free Lunch Program

4 hari lalu

Funding for the Hasty Free Lunch Program

Jokowi and his ministers begin tinkering with the budget for the free lunch program. It is not appropriate and highly risky.


Empty Words about Nusantara Forest City

6 hari lalu

Empty Words about Nusantara Forest City

The claim that the Nusantara Capital City will be a sustainable forest city is just empty words from officials.


Minister Bahlil's Grease Money

11 hari lalu

Minister Bahlil's Grease Money

Investment Minister Bahlil Lahadalia has revoked mining permits and then reissued them. There are indications of illegal buying and selling of permits


The Grip of Corruption on Our Courts

11 hari lalu

The Grip of Corruption on Our Courts

Corruption is spreading through the Indonesian legal system. This is illustrated by the case involving the Supreme Court secretary.


Pretending to Reduce Emissions

13 hari lalu

Pretending to Reduce Emissions

The REDD+ program brought in money but failed to protect forests. Millions of hectares of forests become concession areas for mining corporations.


The Spread of Illegal Rice Levies

13 hari lalu

The Spread of Illegal Rice Levies

Illegal levies are worsening the shortages of subsidized rice. Price rises are caused by, among other things, corruption.


The Return of Meat Import Quotas

18 hari lalu

The Return of Meat Import Quotas

The government, once again, is applying a policy of import quotas. This will lead to collusion and bribery.