Monday, December 31, 2007

(Expecting) Affordable Internet Plans

Nowadays, more and more activity and transaction we can do via internet rather than just via conventional way. Indonesia with increasing of Internet usage penetration up to 8.9% (according to Internet World Stat) needs a strong infrastructure to support the growth. Yes, the key is INFRASTRUCTURE to connect user and ISP. Indonesia is not lack of ISP and internet connection choices, especially big cities such as Jakarta, Surabaya, Bandung and other major cities. But that's all can't meet demand, supply and buying power of most population.

A most common connection is using dial-up modem with maximum speed of 64Kbps. This connection type is most widely available as it use PSTN network as its medium, and most ISP has dial-up service, prepaid and post paid. But priced at Rp. 165/min (US$ 1 = Rp. 9400) Telkomnet, the mostly used dial up service, we cant really it's satisfy.

Recently Telkom, the biggest telecommunication provider in Indonesia, has just upgraded some of its network to digital line on some major cities which is available for ADSL-level connection. With ADSL connection the maximum speed can be reach is 512Kbps (downlink) and 64Kbps (uplink). This speed is quite reasonable compare to its price. But as Telkom more focus on its CDMA Telkom Flexi, fixed line expansion growth is almost zero. So area that is not covered yet, we have no idea if Telkom plan to cover it or leave it to be covered by wireless.

Thankfully, there's more and more public available WiFi. And also some area has local available internet backbone. But as it serve a limited area only, we can not rely and hope them to cover some not-so-promising area such as rural and urban area.

Last choice, the most public available connection, is by wireless company provider (GSM and CDMA). But for its price at average Rp. 12/Kb and Rp. 3-5/Kb for GSM and CDMA respectively, can you imagine if this connection is use for daily activity that may consume up to 1GB data per day ? There is plan for 250MB - 4GB per month, with variance price from one provider to another. As it has limitation, I always feel uncomfortable to use it. There's unlimited plan price at Rp. 350.000/month with external ISP, but they limit the speed at max. 64Kbps even newest 3G modem is used. Forget the HSDPA and 3G claims for data speed rate !

My last word is, if you're a wireless internet provider (GSM and CDMA), please consider to launch an affordable internet plan. I think the price should be no more than Rp. 100.000-150.000/month. Be different ! I believe this will bring a very promising revenue for your company.

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