Local Industry Alliance Promotes Broadband Development – Interpretation of the IFA's Establishment

Local Industry Alliance Promotes Broadband Development – Interpretation of the IFA's Establishment

On April 27, 2016, Indonesia FTTH Alliance (IFA) announced its official establishment and held the first summit in Jakarta. It is the first industry Alliance focusing on the national broadband development in the South Pacific region. Its establishment proofs that Indonesia is seeking an unprecedented road to promote information and communications technology (ICT) prosperity and rapid broadband development.

The fixed network development varies according to countries or regions and it is affected by local economy, basic infrastructures, governments’ awareness and control capabilities.. During network construction in specific regions, multiple factors such as infrastructures, buildings, and user habits, affect the sustainable development of broadband. On the road of promoting broadband development, countries demand for more diverse solutions and implementation measures.

Currently, the biggest problem faced by Indonesia in its digital economy transition is that the ecosystem for the digital economy has not been built. The slow development of broadband infrastructures hinders the country's economic transition. Recognizing this, Mastel, a leader of the Indonesia's ICT association, led the ICT industry to set up the IFA that focuses on Indonesia's ICT development with the government's support. The IFA aims to build the ecosystem for ICT development, and accelerate the construction of broadband infrastructures, which are the highways of the digital economy. This Alliance has put up with three missions: (1) Accelerate the rollout of fibers across the country; (2) Bring premium experience of digital services and advance the digital economy; (3) Develop business platforms and business models to promote the sustainable development of the IFA. This type of local Alliance brings new ideas to facilitate national broadband.

Firstly, the IFA is a special organization established in Indonesia to focus on the country's broadband development. With the IFA, there are chances for government departments (including the Ministry of ICT, Ministry of PUPR, and Ministry of Home Affairs), industry institutions (such as Mastel), operators, subcontractors, large real estate developers, electricity companies, OTT providers, local consultants and equipment suppliers to cooperate with each other. Furthermore, the IFA can attract industry experts and potential partners through brand promotion thereby strengthening industry chains and facilitating the implementation of the national strategy. Additionally, the IFA helps to achieve synergy development among FTTH network construction, application service innovations, and industrial technology breakthroughs.

Secondly, the IFA is a platform for industry parties to discuss, identify and handle key issues and take measures to promote the nation's broadband development, including public perceptions of broadband values, impacts of industrial policies, infrastructure synergy, business model innovation, technology application selection, and content application promotion. For example, IFA has formulated the following plans:

  • Conduct researches on the broadband indicator system, regularly publish white papers on the broadband development, or provide detailed reports on Indonesia's broadband development to the government.
  • Conduct exchanges and researches on the evolution of broadband network construction, application innovation, technological breakthroughs, industrial development, and market supervision. Additionally, provide decision-making suggestions for the government in a timely manner and release guidance to the industry.
  • Provide policy advises based on Indonesia's broadband industry chain status, key technology research, and other important issues affecting the broadband development. In addition offer suggestions and assistance for the broadband R&D and pilot projects initiated by the country.
  • Facilitate broadband exchanges between Indonesia and other countries and disseminate local broadband development abroad.
  • Serve as a public service platform to advance the industry, promote cooperation, and provide consultancy and technical support.

Thirdly, with the IFA platform, Indonesia can aggregate various resources in the industry, form cooperative atmosphere, and set up a favorable mechanism. Before the establishment of IFA, global and regional summits were held and national ICT and NBN projects were conducted to advance the broadband development. However, these summits and projects were initiated for specific events only and ran for a short period of time. Different from these summits and projects, the local industry Alliance is responsible for the country's long-term ICT development. It can hold summits, conduct projects, and deal with relevant events in a short, medium, or long term, bringing great momentum.

Finally, the world is undergoing unprecedented changes, and all countries are accelerating their ultra-broadband development. Countries face opportunities as wells as risks in the road of establishing local industry Alliance. No matter whether local industry Alliance can be successfully set up or not, this type of mode has opened a new door to achieve differentiated broadband development around the world. Best wishes are given to the local FTTH industry Alliance, IFA, and the world's broadband development.