Indonesian telcos want broadband incentives

Dylan Bushell-Embling
17 Dec 2014
00:00

Indonesia's operators have called on the government to offer incentives in return for them taking part in the five-year plan to improve access to broadband in the market.

PT Telkom, XL Axiata and PT Indosat have all expressed willingness to participate in the project, but asked for government support in return, the Jakarta Postreported.

Operators have requested tax and regulatory incentives, a guarantee surrounding return on investment for projects in less profitable areas and additional spectrum to meet demand.

The government has proposed that Telkom take the lead role in the broadband plan, and is exploring the possibility of allocating additional spectrum to the incumbent operator in return.

XL Axiata has also expressed a willingness to take part, but has called on the government to implement and infrastructure sharing scheme so it can take part. Indosat is asking for help improving its revenue and reducing costs.

The Indonesian government's five-year broadband plan aims to provide affordable broadband access to most of the population – including 70% of urban households and 100% of urban office buildings, by 2019.

In October, Telkom revealed plans to invest 45 trillion rupiah ($3.7 billion) towards broadband rollouts in 2015 as part of the plan.

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