I just found this article on the Indonesian ISP Association (APJII) website. Apparently open competition in the telecommunications industry is finally going to take place.
Based on the new Ministry of ICT's Regulation No. 3/2007, the price paid by ISPs to network operators like Telkom, Indosat, and Excelcomindo for leased lines will likely go down by 50%. As this infrastructure rent represents 50% of an ISP's operational costs, then ISPs will likely decrease internet service price by 30%.
A good thing for the development of an Indonesian information society. A true information society is a society in which a large part of the added value is created from information & knowledge (content), not rent.
FYI: I don't have the latest figures, but in 2003, the total cost of 20 hours of dial-up Internet access per month was about US$ 22/month, which corresponds to 38% of Indonesia's GNI per capita. While in high income countries, internet costs are comparable to an average of 1.7% of GNI per capita.
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