For several years now it has been apparent that having pervasively available broadband communications infrastructure is critical for developing countries to accelerate economic growth. It has been deemed as more important to rapid economic development than having electricity and drinkable water. In fact, the World Bank estimates that every 10 percent increase in broadband growth will contribute to the growth of national income by 1.38 percent.
With this as context, the Alcatel-Lucent (News - Alert) (ALU) and Telkom Akses (the Telkom Indonesia subsidiary responsible for building a national broadband infrastructure) announcement of plans for the delivery of fiber to the premises (FTTx) ultra-broadband access for millions of subscribers in Indonesia in the next two years, is significant news.
You read correctly. There is a very ambitious plan in place for Telkom Indonesia, the nation’s largest telecom services provider, majority owned by the government, through Telkom Akses, with the responsibility for expanding the national broadband infrastructure to 15 million subscribers by 2015. It is part of the TITO (Trade In Trade Off) Access Modernization Project which is replacing legacy copper cabling with optical fiber.
An ambitious project
This is one of the bigger network modernization projects on the global stage. Indonesia is the third most populace country in the world. While it has over 17,000 and a mostly agrarian economy, its main islands, particularly in the eastern region of the country, are densely populated. Getting the region wired with ultra-broadband to compete in the connected planet era is thus a key national priority. The 15 million subscribers by 2015 represents increasing broadband penetration in Indonesia from about 2 percent to 30 percent by the end of 2015.
It is also obviously an important deal for Alcatel-Lucent whose Intelligent Services Access Manager (ISAM) product family, which supports GPON enabling fiber-to-the-premises, is anchoring the deployment and enabling it to be done swiftly.
Commenting on the project, Badriyanto, CEO of Telkom Akses, said: “Deployment of Alcatel-Lucent’s GPON technology in Indonesia’s eastern region will contribute greatly to achieving our country’s goal of closing the digital divide and giving all of our people access to broadband whether they are living closely together in our cities or widely dispersed in our rural areas. We believe that providing reliable and affordable ultra-broadband on a national level will positively and significantly impact Indonesia’s citizens in the areas of economics, education and healthcare by providing a richer, more interactive experience.”
Rama Agung, account director of Alcatel-Lucent Indonesia, said: “The fact that Alcatel-Lucent is the market leader in GPON and Access Technology combined with the proven quality of our solution were deciding factors in Telkom Akses giving us opportunity to contribute to Indonesia’s national broadband program. It is a great endorsement of Alcatel-Lucent’s expertise and accomplishments in this field.”
Once deployed Telkom Indonesia, subscribers will be able to enjoy the broad range of next generation consumer and business services. These include IPTV (News - Alert), video on demand, voice over IP (VoIP) and more at speeds of up to 100 Megabits per second.
In regards to the technology being used, Alcatel-Lucent notes that one out of three fixed broadband subscribers around the world is served through an access network provided by ALU, and the company is involved in over 100 FTTH projects worldwide, over 85 of which are with GPON.
Much of the news these days tends to revolve around all things wireless. However, the facts are what goes in the ground still matters - whether it is in the developed or developing world. In short, the world still needs a heavy dose of fiber in its diet.
Edited by Stefania Viscusi