3.6 Broadband in Indonesia
Content
Broadband in Indonesia Ms. Farida Dwi Cahyarini Secretary DG of Postal of Postal and Informatics Operation Resources Ministry of Communication of Communication and Information Technology Republic of Indonesia of Indonesia
MCIT
Overview of Indonesia of Indonesia MCIT
Total : 1,904,569 sq km Water : 93,000 sq km Land : 1,811,569 sq km 15th Largest in the world
AREA
17,508 islands (6,000 inhabited) 33 Provinces
251,160,124 (July 2013 est.)
ARCHIPELAGO
POPULATION
4th Largest in the World
Population Pyramid of Indonesia MCIT
Of the 250 million people, over 50% of the population is under 29 years old, and 60% of the population is under the age of 39, with around 52% of the population living in urban areas. Source : The World Factbook (www.CIA.gov)
3rd Largest Users in the World Source : emarketer.com (2012)
5th Largest Users in the World 2 Cities in Indonesia (Jakarta & Bandung) placed in 1st and 6th most active twitter cities Source : Semiocast.com (July 2012)
Economy of Indonesia (Real Growth of GDP) MCIT
Source : CEIC With the GDP expected to reach US$ 1trillion this year, Indonesia is the largest economy in Southeast Asia. Much less affected by the global financial crisis compared to its neighboring countries, Indonesia’s economy grew by 6.3% in the first semester of 2012, making it the fastest growing G20 economy after China. Indonesia grew by 6.5% in 2011 and 6.3% in 2012.
Broadband Contribution to GDP Growth MCIT
Source : ITU, Impact Broadband on Economy
Current Status of Broadband Development in Indonesia : NEED TO BE ACCELERATED
MCIT
1. Broadband developments are still very low : a) fixed broadband : 1,1% of total populations b) wireless broadband : 22,2% of total populations Source : World Economic Forum (2012)
2. Optical‐based Backbone are not fully connecting all Indonesian cities, currently there are only 69,6% of total cities in Indonesia connected to the optical‐based backbone, not even exist in Maluku and Papua. Source : TELKOM (2012)
3. The price of broadband services is stil high : around 7,4% of GDP/capita. As a comparison, in developed countries, the price of broadband services is around 3% of GDP/capita. Source MCIT (2012) and Intel Corp (2011)
MCIT
OPTICAL‐BASED BACKBONE DEVELOPMENT
Source : MCIT (2013)
Statistical Data Related to Access Infrastructure
Source : MASTEL, ICT Outlook 2012
MCIT
* Estimated Data
Access for Broadband in Indonesia Rely on the Use of Spectrum
MCIT
Source : AT Kearney & GSMA (2011) •
•
With the high growth of data communication while voice communication is decreased, the need for spectrum is increasing while the cellular operators' revenue growth has decreased. Currently, Indonesia has experienced a “spectrum scarcity” due to increased traffic of
National Mid‐Term Development Plan (RPJMN ) : Year 2010 – 2014
MCIT
1. Penetration of Internet user : ≥ 50% population. 2. Penetration of Broadband user : ≥ 30% population. 3. Number of Districts/Cities served by Broadband networks : 88% from total. 4. All major islands connected to the optical‐based backbone. 5.Most likely broadband development will be covered by Mobile Broadband.
S S E R G O R P ON ED H S I L P M O C TO BE AC
What Next After 2014 ?
Reach the Indonesian Vision in 2025 :
100% of USO areas can access telephone and Internet
88% cities can access broadband services Broadband penetration : 30% of populations
Covering all the blank spots
MCIT
Finishing broadband roll out to cities, schools, and public facilities; Upgrade USO facilities to become broadband; Finishing the analog to digital TV migration and use the digital dividend spectrum ;
The Self‐ Sufficient, Advanced, Just, and Prosperous Indonesia
Source : BAPPENAS (2013)
Target Set Up in 2013 for 2017 MCIT
2013 Infrastructure Fixed broadband : 15% household 1Mbps , 30% building 100 Mbps, and 5% populations; Mobile broadband : 12% populations 512 kbps
2017 Infrastructure in minimum Fixed broadband : 40%‐75% household 2Mbps, 50%‐ 80% building 1 Gbps, and 25% populations; Mobile broadband : 75% populations 1 Mbps
Utilizations : e‐Government ; e‐Education; e‐Health; e‐Logistic, e‐Procurement Source : BAPPENAS (2013)
Design Framework of Indonesia Broadband Plan
MCIT
VISION : INDONESIA 2025 VISION : BROADBAND INDONESIA OBJECTIVE : BROADBAND INDONESIA MAIN FOUNDATIONS BASIC PRINCIPLES
INFRA‐ STRUCTURE AND SECURITY
ADOPTION AND CREATIVE UTILIZATIONS
LEGISLATION AND REGULATION
FUNDING
Basic principles and requirements of the development of national broadband
MCIT
The importance of new spectrum allocation for mobile broadband is urgently needed to accelerate the creation of national broadband infrastructure. Digital Dividend in 700 MHz provides the coverage advantages of radio waves propagation which can boost broadband penetration faster in a lower cost.
Spectrum Plan for Digital TV and Digital Dividend Digital Dividend in Indonesia ANALOG TV 478
MCIT
328 MHz
806 MHz
TV Analog Free To Air
(FTA)
Broadcasting Digitalization Process DIGITAL TV
Digital Terrestrial TV Free To Air
(FTA)
526
694
192 MHz 112 MHz
Indonesia already acknowledged the adoption of APT 700 MHz Band Plan to be used as a digital dividend band plan, as shown above.
Points to Remember Regarding Digital Dividend
MCIT
1. Definition for digital dividend is the amount of spectrum made available by the transition of terrestrial television broadcasting from analogue to digital. 2. In order to obtain any digital dividend, analogue transmissions need to be switched‐off, which requires that a successful transition to digital TV has occurred, and in turn that digital terrestrial broadcasting has been able to attract analogue viewers in sufficiently large numbers to make this possible. 3. This can only happen if digital service offering is attractive enough to the viewers to justify the purchase of digital adaptors. 4. This in turn requires a significant increase in the number of attractive programs (“killer applications”) and perceived quality (e.g. HDTV).
Number of Analog Broadcasters in Indonesia MCIT Nationwide Public TV Station (TVRI)
Nationwide Public Radio Station (RRI)
Established since 1962
Established since 1945
376 Transmission Station
62 Regional Stations
28 Regional Stations
11 Overseas Representatives
Commercial TV
Terrestrial Free to Air : 297
Pay TV trough Satellite : 13
Pay TV through Terrestrial : 2
Pay TV Through Cable : 118
IPTV Operator : 1
Non‐Commercial TV
Commercial Radio
Private Radio Station : 1,250
Non‐Commercial Radio
Public TV Stations (Local) : 8
Public Radio Station (Local) : 33
Community TV Stations : 113
Community Radio : 71
Indicators of Broadcasting Industry in Indonesia TV Penetration Rate
Source : Media Partners Asia, 2010
TV Net Ad Spend
MCIT
Source : Media Partners Asia, 2011
Pay‐TV Subs Progression
Free‐to‐Air TV remains dominant with more than 40% of market share and Pay‐TV had 8% market share. The projections suggest that FTA TV will be around 38% by 2015 and Pay‐TV share will be at most at 15%. Digital TV must be a Free‐to‐Air TV
Current Status of Digital TV Introduction in Indonesia 1. Until 2013, MCIT already conducted several selection processes to assign the UHF channels in 7 (of 15) Service Zones which covers 11 (of 33) Provinces. 2. The selection processes resulting in …. Mux Provider. 3. The Digital TV introduction inline with the national schedule.
MCIT
Legal Framework of Digital TV Introduction in Indonesia
MCIT
1. Legal frameworks applied in Indonesia to introduce digital TV also includes technical and economical aspects of the migration process. 2. Legal frameworks include Broadcasting Act of 2002, Government Regulations, Ministerial Regulations, and Ministerial Decrees. 3. DTTB standard decided to be implemented in Indonesia is DVB‐T2. 4. Providing set‐top boxes to the viewers as many as possible is mandatory to the Mux Provider as part of their application in the selection process. Currently, the commitment of the winners is to provide 7.500.081 units of free set‐top boxes to their viewers.
Campaigns of Digital TV to the Viewers MCIT
The campaigns to the viewers mainly intended to highlight that introduction of digital television will bring many customer benefits : 1.wider choice in TV and radio channels; 2.improved picture and sound quality (depending on the system settings); 3.enhanced information services including the Electronic Programming Guide; 4.enhanced ‘teletext’ services (such as Early Warning Systems).
Campaigns of Digital TV to the Viewers MCIT
Involving direct interaction, website, and social media (twitter and facebook) : MASCOT : SI ARTA
Siarta @TVDigital_IDN http://www.tvdigitalindonesia.com http://tvdigital.kominfo.go.id
Campaigns of Digital TV to the Industry MCIT
The campaigns to the industry is also important in order to motivate them to migrate to the digital technology as soon as possible. The campaigns mainly persuade them with the benefits they can achieve : lowering the costs (per channel) for broadcasters;
•
new transmitter networks managed by Mux Provider: including new transmitters, antennas and transport networks; •
new receiver devices means different user experiences : several devices are being produced in the current market, including set‐top‐boxes, PC‐card integrated receivers, USB‐ based receivers and Integrated Digital Television sets (IDTVs). •
MCIT
MCIT
Overview of Indonesia of Indonesia MCIT
Total : 1,904,569 sq km Water : 93,000 sq km Land : 1,811,569 sq km 15th Largest in the world
AREA
17,508 islands (6,000 inhabited) 33 Provinces
251,160,124 (July 2013 est.)
ARCHIPELAGO
POPULATION
4th Largest in the World
Population Pyramid of Indonesia MCIT
Of the 250 million people, over 50% of the population is under 29 years old, and 60% of the population is under the age of 39, with around 52% of the population living in urban areas. Source : The World Factbook (www.CIA.gov)
3rd Largest Users in the World Source : emarketer.com (2012)
5th Largest Users in the World 2 Cities in Indonesia (Jakarta & Bandung) placed in 1st and 6th most active twitter cities Source : Semiocast.com (July 2012)
Economy of Indonesia (Real Growth of GDP) MCIT
Source : CEIC With the GDP expected to reach US$ 1trillion this year, Indonesia is the largest economy in Southeast Asia. Much less affected by the global financial crisis compared to its neighboring countries, Indonesia’s economy grew by 6.3% in the first semester of 2012, making it the fastest growing G20 economy after China. Indonesia grew by 6.5% in 2011 and 6.3% in 2012.
Broadband Contribution to GDP Growth MCIT
Source : ITU, Impact Broadband on Economy
Current Status of Broadband Development in Indonesia : NEED TO BE ACCELERATED
MCIT
1. Broadband developments are still very low : a) fixed broadband : 1,1% of total populations b) wireless broadband : 22,2% of total populations Source : World Economic Forum (2012)
2. Optical‐based Backbone are not fully connecting all Indonesian cities, currently there are only 69,6% of total cities in Indonesia connected to the optical‐based backbone, not even exist in Maluku and Papua. Source : TELKOM (2012)
3. The price of broadband services is stil high : around 7,4% of GDP/capita. As a comparison, in developed countries, the price of broadband services is around 3% of GDP/capita. Source MCIT (2012) and Intel Corp (2011)
MCIT
OPTICAL‐BASED BACKBONE DEVELOPMENT
Source : MCIT (2013)
Statistical Data Related to Access Infrastructure
Source : MASTEL, ICT Outlook 2012
MCIT
* Estimated Data
Access for Broadband in Indonesia Rely on the Use of Spectrum
MCIT
Source : AT Kearney & GSMA (2011) •
•
With the high growth of data communication while voice communication is decreased, the need for spectrum is increasing while the cellular operators' revenue growth has decreased. Currently, Indonesia has experienced a “spectrum scarcity” due to increased traffic of
National Mid‐Term Development Plan (RPJMN ) : Year 2010 – 2014
MCIT
1. Penetration of Internet user : ≥ 50% population. 2. Penetration of Broadband user : ≥ 30% population. 3. Number of Districts/Cities served by Broadband networks : 88% from total. 4. All major islands connected to the optical‐based backbone. 5.Most likely broadband development will be covered by Mobile Broadband.
S S E R G O R P ON ED H S I L P M O C TO BE AC
What Next After 2014 ?
Reach the Indonesian Vision in 2025 :
100% of USO areas can access telephone and Internet
88% cities can access broadband services Broadband penetration : 30% of populations
Covering all the blank spots
MCIT
Finishing broadband roll out to cities, schools, and public facilities; Upgrade USO facilities to become broadband; Finishing the analog to digital TV migration and use the digital dividend spectrum ;
The Self‐ Sufficient, Advanced, Just, and Prosperous Indonesia
Source : BAPPENAS (2013)
Target Set Up in 2013 for 2017 MCIT
2013 Infrastructure Fixed broadband : 15% household 1Mbps , 30% building 100 Mbps, and 5% populations; Mobile broadband : 12% populations 512 kbps
2017 Infrastructure in minimum Fixed broadband : 40%‐75% household 2Mbps, 50%‐ 80% building 1 Gbps, and 25% populations; Mobile broadband : 75% populations 1 Mbps
Utilizations : e‐Government ; e‐Education; e‐Health; e‐Logistic, e‐Procurement Source : BAPPENAS (2013)
Design Framework of Indonesia Broadband Plan
MCIT
VISION : INDONESIA 2025 VISION : BROADBAND INDONESIA OBJECTIVE : BROADBAND INDONESIA MAIN FOUNDATIONS BASIC PRINCIPLES
INFRA‐ STRUCTURE AND SECURITY
ADOPTION AND CREATIVE UTILIZATIONS
LEGISLATION AND REGULATION
FUNDING
Basic principles and requirements of the development of national broadband
MCIT
The importance of new spectrum allocation for mobile broadband is urgently needed to accelerate the creation of national broadband infrastructure. Digital Dividend in 700 MHz provides the coverage advantages of radio waves propagation which can boost broadband penetration faster in a lower cost.
Spectrum Plan for Digital TV and Digital Dividend Digital Dividend in Indonesia ANALOG TV 478
MCIT
328 MHz
806 MHz
TV Analog Free To Air
(FTA)
Broadcasting Digitalization Process DIGITAL TV
Digital Terrestrial TV Free To Air
(FTA)
526
694
192 MHz 112 MHz
Indonesia already acknowledged the adoption of APT 700 MHz Band Plan to be used as a digital dividend band plan, as shown above.
Points to Remember Regarding Digital Dividend
MCIT
1. Definition for digital dividend is the amount of spectrum made available by the transition of terrestrial television broadcasting from analogue to digital. 2. In order to obtain any digital dividend, analogue transmissions need to be switched‐off, which requires that a successful transition to digital TV has occurred, and in turn that digital terrestrial broadcasting has been able to attract analogue viewers in sufficiently large numbers to make this possible. 3. This can only happen if digital service offering is attractive enough to the viewers to justify the purchase of digital adaptors. 4. This in turn requires a significant increase in the number of attractive programs (“killer applications”) and perceived quality (e.g. HDTV).
Number of Analog Broadcasters in Indonesia MCIT Nationwide Public TV Station (TVRI)
Nationwide Public Radio Station (RRI)
Established since 1962
Established since 1945
376 Transmission Station
62 Regional Stations
28 Regional Stations
11 Overseas Representatives
Commercial TV
Terrestrial Free to Air : 297
Pay TV trough Satellite : 13
Pay TV through Terrestrial : 2
Pay TV Through Cable : 118
IPTV Operator : 1
Non‐Commercial TV
Commercial Radio
Private Radio Station : 1,250
Non‐Commercial Radio
Public TV Stations (Local) : 8
Public Radio Station (Local) : 33
Community TV Stations : 113
Community Radio : 71
Indicators of Broadcasting Industry in Indonesia TV Penetration Rate
Source : Media Partners Asia, 2010
TV Net Ad Spend
MCIT
Source : Media Partners Asia, 2011
Pay‐TV Subs Progression
Free‐to‐Air TV remains dominant with more than 40% of market share and Pay‐TV had 8% market share. The projections suggest that FTA TV will be around 38% by 2015 and Pay‐TV share will be at most at 15%. Digital TV must be a Free‐to‐Air TV
Current Status of Digital TV Introduction in Indonesia 1. Until 2013, MCIT already conducted several selection processes to assign the UHF channels in 7 (of 15) Service Zones which covers 11 (of 33) Provinces. 2. The selection processes resulting in …. Mux Provider. 3. The Digital TV introduction inline with the national schedule.
MCIT
Legal Framework of Digital TV Introduction in Indonesia
MCIT
1. Legal frameworks applied in Indonesia to introduce digital TV also includes technical and economical aspects of the migration process. 2. Legal frameworks include Broadcasting Act of 2002, Government Regulations, Ministerial Regulations, and Ministerial Decrees. 3. DTTB standard decided to be implemented in Indonesia is DVB‐T2. 4. Providing set‐top boxes to the viewers as many as possible is mandatory to the Mux Provider as part of their application in the selection process. Currently, the commitment of the winners is to provide 7.500.081 units of free set‐top boxes to their viewers.
Campaigns of Digital TV to the Viewers MCIT
The campaigns to the viewers mainly intended to highlight that introduction of digital television will bring many customer benefits : 1.wider choice in TV and radio channels; 2.improved picture and sound quality (depending on the system settings); 3.enhanced information services including the Electronic Programming Guide; 4.enhanced ‘teletext’ services (such as Early Warning Systems).
Campaigns of Digital TV to the Viewers MCIT
Involving direct interaction, website, and social media (twitter and facebook) : MASCOT : SI ARTA
Siarta @TVDigital_IDN http://www.tvdigitalindonesia.com http://tvdigital.kominfo.go.id
Campaigns of Digital TV to the Industry MCIT
The campaigns to the industry is also important in order to motivate them to migrate to the digital technology as soon as possible. The campaigns mainly persuade them with the benefits they can achieve : lowering the costs (per channel) for broadcasters;
•
new transmitter networks managed by Mux Provider: including new transmitters, antennas and transport networks; •
new receiver devices means different user experiences : several devices are being produced in the current market, including set‐top‐boxes, PC‐card integrated receivers, USB‐ based receivers and Integrated Digital Television sets (IDTVs). •
MCIT
