toward broadband economy

8/7/2019 Toward Broadband Economy

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Toward Broadband EconomyToward Broadband Economy

Through Innovative RegulationsThrough Innovative Regulations

os e p h G a r o.P I n t e rc o n n e c t a n d R e g u l a t o r y.T T E LK O M S E L I N D O N E S I A


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ndustry Trends and Challengesrivers for Broadband Economy

ireless Operator Views On BroadbandEconomy

&egulatory Issues to be Considernnovative Regulation

otential of Mobile Broadband

Conclusions


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ireless Operator Views onroadband Economy roadband Infrastructure Development is the essential Platform toupport Broadband Economy ,xtensive use of Broadband Service increase ICT role as drivers forroadband Economy and have:mpact in form of

o ns um er s ur pl us u a l i t y o f l i f e ( )n a b l e d u se r c r ea t e d c o n t en t U CC -C T e na b l e d i n n ov a t i o n d r iv e n b y i n di v i d u a l s MEs

(roadband Economy will explode Bandwidth Requirement Bandwidth within etwork and )nternational Bandwidth as the result of increasing Data:raffic by ncreasing numbers of Broadband Applications and Services ncreasing Perceived User Value of Mobile device forroadband Economy Activity ncreasing numbers of Broadband User

igher BandwithCapacity Requirement result to Higher Operator snvestment that should be reated carefully to balance risk of investment t is not necessarily increase of Profit of Operators rade Strategy between Revenue and Cost still need further.valuation

,roadband Economy is not a single system but Ecosystem it requiresynergies among drivers


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onsumer Surplus as impact ofroadbandHigh speed broadband networks bring about lower search and information

cost and, ,greater access to information which makes price comparisons easier

increases.competition and creates a downward pressure on prices

They also enable the increased customisation of goods and services and

/ .the ensuing improved and or better adapted quality This process not onlyaffects online commerce but also can affect offline shopping when people

search for information and compare prices online before going to a shop

.to make the actual purchase

The resulting empowerment of the individual through the use of broadbandnetworks constitutes a very important economic impact and brings about a

,restructuring of the relationship between customers and suppliers.notably by increasing the consumer surplus

There are also new broadband enabled services that give consumers direct

access to lower cost services abroad , ,Increasingly triple play offers allow consumer surplus gains as data

(voice and video even quadruple play offers which also include mobile)voice can now all be obtained through one subscription with a single

.provider


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uality Of LifeBroadband is changing the way families learn, communicate, play and prepare for their future. Criticallyimportant information about health care, scholarships, colleges, jobs, and community life such as driver's

licenses or registering to vote is increasingly on the Internet, and sometimes only on the Internet. In manyrural communities, because jobs have migrated to urban areas, high school graduates often \ feel theyhave only two choices - go away, or go nowhere. Broadband is the connection to new markets, new jobs, andto distant family and friends.

tudent can complete a university degreeonline , ,ll people no matter where they live can beo more than a keystroke or a mouse clickway from the jobs and opportunities thatroadband both creates and support octros in urban area can diagnose patientsn rural areas or consult with experts from.round the world mpleyess from around the world canollaborate on projects in real time or gain n demand skills as they need them ,itizens can register their cars buy license,nd pay parking tikets online saving timend money eople can play a greater role in deomocracy.s blogger Online activist or movie creator onsumers can benefit from competition in,ore const efficient way lowering cost butncreasing choice hlidren in the most isolated inner cityeighborhood or rural region can acesss the,ame universe of knowledge transformingea ch er s t ea ch an d s tu de nt l ear n arent can keep on top of their children somework and be in contact with theirteacher

Shop owner with good idea ad an internetonnection can become a corner store in

mall business can reach new marketemand skills as they need them ural Broadband may help theitizens to learn by online and jobpportunities that stimulate localeconomy

,or the Economy Broadband can;reate Economic Growth Expandegion Global,ompetitiveness create high wage;obs raising standard of;iving allow SMEs to reach Global.arket ,or Environtment Broadband couldave on transportation polution and

ther saving in environmenterspectives to provide betterenvironment ,or Government Broadband can,ncrease accountabilityransparancyand Coordination forll Government Programs fromlanning until monitoring across.he country It also provide strongools for measuring and evaluatingnd reporting as well as Reducingoruptionand others Policy MakingTools


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( )na bl e d u s e r c re at e d co n te nt U CC

The Internet as a new creative outlet has altered the economics

of information production and led to the increasingdemocratisationof media production and changes in the nature of.communication and social relationships

, , -It changes in the way users produce distribute access and re use

,information knowledge and entertainment potentially give rise to,increased user autonomy increased participation and increased

.diversity ICTs and broadband create new ways for companies to exploit the

. , ,creativity and innovativeness of their workforce Blogs wikis, ,podcasting tagging technologies and lessons of community and

social networking sites are increasingly seen as important toolsto improve the efficiency of employees

,These may result in lower entry barriers distribution costs anduser costs and greater diversity of works as digital shelf space

is almost limitless


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ME s A lt e r a tio nSMEs are very important in the economy as they tend to represent a very largeshare of

.businesses

- ,Broadband can help to empower small and medium sized firms enabling them tocompete with

larger firms in an increasing number of markets and purchase services theypreviously could not.afford

, -At the same time broadband and ICT enabled trade in services also offer SMEs

increased market access abroad and opportunities to become part of the value, , .chain of production of other larger firms

The Internet as a new creative outlet has altered the economics of informationproduction and led to the increasing democratisationof media production and

.changes in the nature of communication and social relationships , , - ,It changes in the way users produce distribute access and re use information

,knowledge and entertainment potentially give rise to increased user autonomy.increased participation and increased diversity ,These may result in lower entry barriers distribution costs and user costs

and greater diversity of works as digital shelf space is almost limitless


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rivers for Broadband Economy

Technologies

Policies

Markets

Applications Services

Regulations

Identification of Industry Trends are crucial in Supportin


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( )elco Industry Trends 1 / ,elco Industry trends is toward Fixed Mobile Convergence based on he IMS platform

- - , - ,multi service multi protocol multi access IP based network- ,ecure reliable and trusted - :ulti services delivered by a common QoS enabled core.etwork - : ;ulti access diverse access networks fixed and mobile, ( , , )erminals Mobile xDSL etc ,ot one network but different networks that interoperateeamlessly /obility Nomadicity of both users and devices y communications services A , ,ywhere any terminal or deviceanytime

( )his will leads to a true Next Generation Network NGN with greaterost efficiency nd el ive r Fl ex ib le S erv ic es /or Industry Players Operators


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( )elco Industry Trends 2

ew business models enter Telco marketew business models enter Telco market

Telco slooking

fornew

business

& :Expand scope reachMNOs enter the fixed market

and vice versaOffer application services

( / )Establish new business models triple quad play

New players create very fast hugecommunities offering cool services for

free ,Revenue models based on advertising

,subscription and transactionThey expand scope and reach

/The Internet Web is and will be the keysource of service and business

innovationsInternetBusiness

Modelsenter theTelco

market

Somenew

models

Mobile device manufacturers enter thecontent and application arena

Content providers offer connectivityfor free

elkomselelkomsel eta Labseta LabsInnovationInnovation


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( )elco Industry Trends 3

s this a Media Company or an Operator?s this a Media Company or an Operator?

. ..n the futurehere Will be Service Explosion


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( )elco Industry Challenges 1

From Regulated Business to Unregulated Business( )B2B Approach


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nternetPlayers

IndustryPlayers

obileOperators ixedOperators

Telecom peratorsUnderPressure

, , ,Amazon Yahoo Google...SKYPE Seeking revenue growth

Through mobile internet

, ,Nokia Microsoft Cisco...Exploring adjacent spaces

& ;a p i d d e v e lo p m e n t i m p l e me n t a t i o n c y c le s S o f t wa r e an d n o ta rd wa re b as ed

; ;n cr ea se d c om pe ti ti on C om mo di ti za ti on o f n et wo rk s er vi ce s&n c re a si n g n e tw o rk;a nd wi dt h c os ts l on g pr od uc t d ev el op me nt li fe cy cl es

.ELCO 2 0n re gu la te d P la ye rs

e gu la te d P la ye rs.ELCO 1 0New Players in Emerging Market are Threathening TELCO Operatos


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Data Service Explosion Require New Strategy


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otential of Mobile BroadbandNumber of subscribers to mobile

broadband will overtake fixed

subscribers by 2011The mass market adoption of mobile

:broadband will happen as a result of - - &Easy to use plug play,devices &Advanced networks Worry free data pricing

Mobile broadband expands the

:addressable market by Support for high bandwidth

multimedia applications

Incorporating consumerelectronic

devices into the mobile

networks


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egulatory Issues to be Consider-

Licensing

Interconnect

Numbering

Spectrum

Universal Access

Competition

Pricing Regulation

Vertical Integration

Horizontal Integration

Service Regulation

Government Policies

The Key is Harmonization toward Unregulated Business


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ddressing Innovative Regulations

.1 , ,Enhancing efforts to stimulate investment innovation and promotionof next generation broadband deployment and demand for broadband

.services.2 ,Moving Step by step Telco Business from Regulated Industry to Self

Regulated Industry.3 ,Advocating for forward looking spectrum management the allocation

of additional spectrum for advanced wireless services on a

.technology neutral basis 4 Creation of incentives to improve:Industry performance

price cap price regulation , ,quality service targets publicity contracts- Reduction of Regulatory Fee- Tax Incentives

.5 Universal Access and Service License to approach Broadband

Economy Main requirements and goals of Regulation and Public- /Policy in a multi service service convergenceenvironment


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Conclusions

. roadband Infrastructure Development is the essentiallatform to support Broadband Economy and Broadbandcosystem must be built base on balancing Industryrends and Regulatory Policy to support Broadband.conomy

. ndustry Challenges and Trends will be shifting Telcondustry from Regulated Industry to Unregulated Industry.tep by step3.. y addressing Innovative Regulation toward broadband,conomy Industry could be able to Stimulate Broadbandconomy through Network Capability and Capacityevelopment in cost effective and efficient as well as.lexibility of Services5.. otential of mobile broadband technology as enabler forroadband Economy come from Its improvement inerformance to improving User Experience7.

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