We speak to Adi Kusma, President of Indonesia’s Biznet Networks.
What access technology or technologies is your broadband network based upon and why do you think there is a good business opportunity for broadband in your market?
We’re building the network based on fibre optics using two different kind of technologies – Metro Ethernet and GE-PON. We used Metro Ethernet to connect high rise buildings and GE-PON for distribution up to SMB & residential.
What social or economic benefits will your broadband service bring to your country?
I think broadband will improve the way people communicate and do business in each country. Besides efficiency, I think broadband will also trigger the creative industry (software, design, etc) economy in the future.
Can you give an idea of your network’s expected footprint and timeframe for rollout?
We started laying fibre optic cables in 2006, and as of today we have around 1,700km in the ground. Since Indonesia’s economy is improving, we will continue to build the network with a growth rate of around 30 to 40% per year.
Where will the next National Broadband Networks (NBNs) be built in the Asia Pacific region, and is the need greatest in developed or developing nations?
In the case of Indonesia, the government will not initiate the NBN project, so it will depend on private network operators like us to roll out the network.
For government initiatives, it doesn’t matter if it is developed or developing nations – it’s more to do with the way that government consider to what extent broadband will benefit the country and the economy. For an incumbent telco to roll out NBN is a bit slow since they have large copper assets which they are still trying to utilise.
In Singapore and Australia it is more of a government initiative, while in Korea & Japan it is private companies. I haven’t heard of any more NBN initiatives in the region as yet..
How do you segment the market to become a leading broadband service provider?
When we started Biznet, we really focused on the enterprise market since they are the ones who need premium broadband service and are willing to pay extra money for a good quality service. Once our enterprise market became settled, then we moved down to the SMB market.
Now we are preparing our team and network to enter the mass consumer market. Each market segment has different technology, pricing, requirements and strategy. In order to become the leading service provider you need to have the right technology, the right people and the right pricing strategy.
How can greenfield ISPs compete with telecom operators in an emerging market?
Incumbent telcos are slow in deploying new technology, but once they have rolled out, the resulting network is very big. As a greenfield ISP, we need to stay focused on certain areas and markets where we think we can survive. If we can manage to grow the business in that area or market, then we slowly expand into different ones. If you keep consistent in doing it, I think the greenfield ISP will give incumbent telcos a hard time.
How do you make money from fibre? What are the key services which will deliver return on investment?
We currently deliver data communication and broadband services on our fibre. Both services give a good return on investment as long as you deliver very good service and can get many customer in the area you build the fibre. We plan to add TV services in the future on our existing network – hopefully it will be ready in one or two years.
Adi will be delivering a presentation within the session “Delivering upon the potential of fibre and optimising DSL – fibre migration” at this year’s Broadband World Forum Asia, taking place at Malaysia’s Kuala Lumpur Convention Centre on 10th-11th May, 2011. For more information and to register, please click here
source article : Broadbandworldforum