Management Competition for Peoples Prosperity in Convergence Era

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Management Competition for Peoples Prosperity
in Convergence Era
by Syahrial Syarif PT INDOSAT - INDONESIA
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Agenda
ICT Convergence
Competition Era
Competition Management
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Electronic Applications for Indonesian Peoples
Prosperity
21st Information Age
Facilitating an open economy and Promoting a
competitive market environment
E-government
E-commerce
E-transportation
E-manufacturing
E-finance
E-healthcare
E-learning
Creating new business and/or development
opportunities
Convergence / Intellectualization Value
Oriented / Globalization
Enhancing the productivity and efficiency of
existing sectors and industries
Service
Finance
ICT
Manufacture
SOC
Education
Commerce
20th Industrial Age
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Telecommunication in Indonesia (1)

• The Position and The Role of Telecommunication
  Services in Indonesia are important and strategic
  
• To support and stimulate economy activities.
• Stabilize national defense and security
• To educate people.
• To smooth away government activities.
• To strengthen Nationalism.
• Technology development and global effect
  affecting the Telecommunication Paradigm
• Important/Strategic and Trade Commodity
• (Dual Role Of Telecommunications)

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Telecommunication in Indonesia (2)

• A Change needs
• To increase Teledensity, Accessibility and Kind
  of Services.
• To motivate people to prepare themselves in
  facing global market.
• To anticipate the Information and Communication
  Technology (ICT) development.

• Development Continuity (high teledensity and
  national distribution)
• Organizing Telco N/W and Services by means of
  fair competition
• Supporting strong and professional operator in
  facing global market

Government
People
Operator

• Wide Coverage
• High Quality
• Reachable Tariff
• Kinds of Services
• Multi Operators

• Profit Sustainable Growth
• Stake Holder Values
• Supporting USO

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Sort of Telecommunication Services in Indonesia

• Cellular Services
• Provided by 7 cellular operators
• Fixed Phone Services
• Provided by 4 fixed operators
• International Telecommunication Services
• Provided by 2 International Call Operators
• Multimedia Services
• Mostly provided by private sectors

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Competition Benefits

• Benefits for People
• Many operator choices
• Improvement of Service Quality
• Attractive Tariff
• Many kinds of Services
• Wide Coverage
• Wide information accessibility
• Job opportunity (directly and indirectly)

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Competition Benefits

• Benefits for the state
• To support teledensity improvement program
• To stimulate other sectors development
  (multiplier effect)
• Tax and non tax income (i.e. Frequency fee,
  Dividend, etc)
• Benefits for the Telco Industry/Operator
• Traffic Growth and revenue
• Efficiency prosecution
• Become more innovative, creative and professional

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The role of Government and Market transformation
Act No 3 Year 1989
Government as Operator, Regulator Policy
determiner
Monopoly
Government as a Policy determiner
Act No 36 Year 1999
Competition
Regulatory Body as a Regulator
Operator as a Telco Provider
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Competition High Teledensity Convergence
Roadmap
Year ?
Now

• New Regulation
• Anti Monopoly
• Competitive Safeguard
• Cost Based

Duopoly Low Teledensity Non-Convergence
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National Telecommunication Visions

• To Create National Telematics activities become
  National Defense tools.
• To have an orientation on Indonesian citizen
  needs, including easy accesibility.
• National Telematics should meet the global demand.

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SHARPENING VISION

• Telecommunication services, networks and network
  facilities are being utilized for national
  economics improvement for all.
• Provisioning of telecommunication services (incl.
  application and content services) provided based
  on fair competition principle in level playing
  field condition.
• An ability on information utilization which gives
  main value added in this globalization era and
  the future.
• Provisioning of networks/telecommunication
  services/telematics should give proper benefits
  for operators/telco providers.
• National policy on foreign capital within the
  telecommunication sector should have any clear
  determination and other related policy without
  ignoring schedule of Indonesian commitment in the
  WTO forum

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STRATEGIC STEPS

• Recommended in the BLUE-PRINT as the guidance
• Accessible telematics services relatively low
  in price.
• The internet access network and content have to
  support the convergence of telematics.
• Applying incentive and disincentive/penalty
  system fair and transparent to the investors.
• To revaluate the telematics regulation.
• To stimulate fair business competition and
  national requirement partiality in accordance
  with the international provision.
• To aim the meaning of Universal Services
  Obligation (USO) establishment and development.

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RECOMMENDATION

• The recommendations in establishing and
  developing national telematics activities are
• Legislation Aspect is able to provide some
  policies based on vision and hope on telematics
  activities which is supported by the competence
  government.
• Operationalization Aspect should have geopolitic
  and geostrategic point of view with no regrets
  and supported by telematics industry (services,
  instruments and telematics component industry).
• Control/Supervision Aspect was performed by
  independent body to prioritize the people
  requirement.
• Law Enforcement Aspect must be performed by the
  professional law enforcement officials.

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Thank You