USO Regulatory Support for Fund Raising in Indonesia

1 / 19
About This Presentation
Title:

USO Regulatory Support for Fund Raising in Indonesia

Description:

USO Regulatory Support for Fund Raising in Indonesia ... The largest archipelago (consists of 17,508 islands) More than 220 million in population ... – PowerPoint PPT presentation

Number of Views:88
Avg rating:3.0/5.0
Slides: 20
Provided by: fal72

less

Transcript and Presenter's Notes

Title: USO Regulatory Support for Fund Raising in Indonesia


1
USO Regulatory Support for Fund Raising in
Indonesia
Benyamin SuraArif Wismadi
  • Directorate General of Post and Telecommunication
  • The Republic of Indonesia
  • Asia Pasific Forum on Telecommunication Policy
    and Regulation
  • 10-12 July, Chiang Rai, Thailand

2
Contents
  • Indonesia Overview
  • Telecom Development Strategy through USO Program
  • USO Funding
  • Issues on USO, Technology and Funding

3
Indonesia Overview
  • The largest archipelago (consists of 17,508
    islands)
  • More than 220 million in population

4
Current Condition
  • Infrastructures
  • 7.82 millions of fixed line (3 penetration )
  • 11 millions of cellular phones users

Low teledensity in rurals (0.2 ) 43.022
villages (64.4 out of 66.778 vilages) have-no
telephone access.
High teledensity in metropolists ( 11 - 25 )
Need more investment mostly in villages with
no-access
5
Problems
  • Investment on fixed-lines needs high-capital with
    low RoI(Return on Investment)
  • Development of fixed lines in rural areas is much
    more expensive (not attractive in business point
    of view)
  • Government budgets on telecommunication
    development was no longer extended since 1985.

6
General Strategy for National Telecom Development
Strategy of Telecom Development
Target the adequacy of telecom and information
access
Telecom development in Non-commercial regions
(USO)
Telecom provisions in Commercial
regions (Competitive / non-USO)
7
Regulation in Commercial Regions
Industry Monitoring
- Equal access - Market Openness - Investment
Funding
Decision-making Mechanism
Requires a Strong and Credible Independent
Regulatory Body (IRB)
Establishment of IRB by strengthening the
existing regulatory body
8
USO Development
Targets
Funding
Technology
- Rural villages - Household - Service advancement
- Operator contribution - Govt. budget - Local
contribution - Grant
Government Duty c.q DG of Post and
Telecommunication
Supported by - Telecom Operators - Local
Government
9
USO Scheme
  • Infrastructure-wise
  • infrastructure provision is required to provide
    access to the community
  • Information-wise
  • introduce new technologies through social streams
    (education, training, seminars)

10
Universal Service Obligation(USO)
  • USO in Indonesia
  • Community Access Within Walking Range
  • Provision of basic telephony services,
  • Priority will be given to areas with
  • existing technical support (site, electricity,
    and if possible close distance to a telephone
    central)
  • Economically viable/potential
  • USO will be a long-term, continuous and
    sustainable process

11
USO in Indonesia
  • By the end of Year 2005 every district capital
    and village in Indonesia will be provided with
    basic telephony service (including fax,dial-up
    internet and low speed data/9600 Bps)
  • Each village will be provided with at least 1
    Line Unit
  • Normal rate will be applied and certain
    additional costs (such as frequency use,
    interconnection) will be temporarily waived
  • USO is expected to bring positive changes to the
    area so that termination of USO status is
    possible and hence waived costs will be applied

12
Deployment Scheme
Year I (2003)
Year II (2004)
Year III (2005)
Target 17,000 villages Area Java, Sumatera,
Kalimantan, Eastern Islands Source of Funding
Operator contribution
Target 18,522 villages Area Sumatera,
Kalimantan, Eastern Islands Source of Funding
Operator Contribution
Target 7,500 villages 870
municipalities Area Sumatera, Kalimantan,
Eastern Islands Source of Funding State Budget
The technology to be implemented is based on the
USO regions geographical and infrastructure
characteristics ? alternatives cable
(wireline), wireless (radio), satellite
13
USO Funding
  • For the 1st year (2003), USO implementation (for
    7,500 villages 870 municipals) will be funded
    by the state budget
  • For the years to come, USO will be funded by
    telecom operators by contributing 1 of their
    gross revenue

14
Uso Funding
  • USO funding scheme
  • State Budget
  • Operator Contribution
  • Local Government Contribution
  • Grant
  • Operator Contribution Network, Services,
    Interconnection
  • Allocation Investment, Operation, Maintenance

15
USO funding scheme 1st year
Communication Sector
State Government
Non-Tax State Revenue
The Use Right Costs
State Treasury
State Budget
Sector Budget
Local Government
USO
Investment
Land Acquisition
Grant
16
USO funding scheme 2nd, 3rd year
Communication Sector
State Government
Non-Tax State Revenue
USO Contribution 1
State Treasury
USO
Local Government
Investment
Land Acquisition
Operation
Maintenance
Grant
17
Issues USO, Technology and Fund
  • USO concepts
  • penetration vs penetration to tariff principles
    and access prices
  • Technology
  • Wire line, Radio terrestrial, VSAT, Satellite
  • 90 USO villages rely on satellite technology
  • Implication on tariff interconnection
  • Regulation/legal issues USO fixed vs mobile,
  • Consequences on operator contributions
  • Investment
  • Operation

18
Possible Options
  • USO implementation
  • Penetration (1st year) TO penetration to tariff
    principles and access prices (2nd and 3rd year)
  • Requires research on affordability to define
    tariff subsidies
  • Technology
  • Increase number of the hub to reduce
    interconnection
  • Regulation/legal issues USO limited mobility,
    coverage meets demand
  • Consequences on operator contributions
  • Interconnection contribution from network
    provider

19
USO Deployment Scheme
20
Information-wise
  • Education
  • School 2000 program, accelerating internet access
    from schools. ICT awareness and capacity should
    be encouraged at the earliest stage possible.
  • Internet cafe in schools with
  • Soft loan for computers
  • Free Internet access and 50 discount of local
    access.
  • Internet Roadshow
  • Seminars and workshops for the society in rural/
    sub-urban areas. The seminars are focused on
    giving fundamental information about the internet

21
THANK YOU FOR YOUR KIND ATTENTION
Write a Comment
User Comments (0)