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Summary of Industry Demand And Capacity
1 ) SUMMARY
The paper in Palapa Engagement ring Project is the best reference to provide an overall picture of online business opportunity over fiber optic backbone especially on the demand area of fiber optic anchor in Philippines. Section some of this daily news briefly identifies the PowerTel project and its capacity, although section a few addresses the supply side of fiber optic backbone in Indonesia, particularly in Java island where the PowerTel fiber optic backbone task resides. 2 . BACKGROUND
At the end of 2006, Indonesian the Government of Indonesia (GoI) was executing an event called Indonesian Infrastructure Summit in which GoI was offering several potential facilities projects to both community and international investors. One of many projects proposed by the GoI was Palapa Ring job which is, basically, a Fibers Optic Backbone project wiring all major destinations within Dalam negri. All approximated costs to develop the project, anticipated with regard to bandwidth, and projected revenues are worked out for all major islands. Indonesia with around 220 millions of population, almost 70% in the population stay in Java tropical isle. As a matter of fact, Java island is considered the most developed area among all major islands in Indonesia, and where regarding 85% of national spending power is the Java island as well. Therefore , via demand and revenue factors, it is very straightforward to calculate approximately that at least 85% of demand and revenue approximated in the Palapa Ring newspaper come from the Java island. Predominantly, GoI provides Palapa Ring project since an entirety project (wiring all major islands within Indonesia) to develop less developed destinations as well, and so the lucrative marketplace, such as Java island, will subsidize different less successful islands. In comparison, PowerTel received its permit to build the fiber optic backbone in Java isle without any obligation to build this kind of infrastructure outside Java tropical isle. In this manner, every one of the forecasted require and income from Palapa Ring project can be used being a credible reference to elaborate PowerTel's fiber optic backbone project
3. INDUSTRY DEMAND IN INDONESIA Ministry of Connection and I . t forecasted that by 2010, the number of set phone users in Dalam negri will reach 31. two million with CAGR of 20. 1%, while the number of mobile phone users will reach 122. you million members with CAGR of twenty six. 7%. For internet users, the Ministry forecasted that the number of internet users in 2010 will reach 80. 2 million
users with CAGR of 30. 8%, as well as the broadband users will reach 2 . five million users with CAGR of 71. 0%. Research shows that transmission of the two fixed and mobile phone users far is greater than the outlook, while transmission of the two internet and broadband users is lower than the forecast. Actually Indonesian online users have to pay a 5 times larger internet access cost than their very own neighboring countries, indicating that band width is being controlled by the incumbent telecommunication operators that makes the penetration of cellphone users considerably exceed the forecast, when penetration of internet users can be low and internet access charge is costly. According to World Lender case study intended for Palapa Engagement ring Project (Indonesian Government job to build 34000 km fibers optic anchor all around the country), with a average scenario, the estimated demand of bandwidth by 2010 will worth USD 575. 6 hundreds of thousands and using a growth rate of 25% per year. Frost & Sullivan even outlook much higher require and revenue then the example. PT Telkom is one of the current telecommunication players who provides end-to-end solutions, hence, the revenue pertaining to " DATA and Internet ServiceвЂќ as stipulated in its Annual Reports (http://www.telkom.co.id), is a credible mention of the get a picture of the revenue generated via fiber optic backbone task. PT Telkom's revenue, by " DATA and InternetвЂќ as of January 2006, is in the amount of IDR on the lookout for trillion or approximately CHF 0. 9 billion, and reached IDR 14. 6 trillion...
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