Papers on the field: Telecommunication Economic, Business, Regulation & Policy

By Sigit Haryadi

1. Recommendations for Handling Price War  Between Telecom Operators in Indonesia (TSSA 2014)

2. The Study of Correlation and Causality between ICT Development with the Welfare (TSSA 2011)

• Language: English
• Publisher: Dago Press
• Release date: Mar 25, 2015
• ISBN: 9781507028193

Sigit Haryadi

book created by Sigit Haryadi, Famous author and lecturer from Bandung Institute of Technology (ITB) Indonesia. This book published by Dago Press in 2013.

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Papers by Sigit Haryadi on the field: Telecommunication Economic, Business, Regulation & Policy.

Already presented at the international seminar: TSSA (Telecommunication Services, Systems & Application), different year.

1. Recommendations for Handling Price War Between Telecom Operators in Indonesia (TSSA 2014)

2. The Study of Correlation and Causality between ICT Development with the Welfare (TSSA 2011)

3. Lawful Interception Data Retention Regulation Recommendation (TSSA 2011)

4. Recommendation on Domestic Internet Interconnection towards all-IP Network (TSSA 2014)

5. Study of Unfair Competition Between Regulated and Unregulated VoIP Providers In the Mixed of Non and all-IP Network Era (TSSA 2014)

Recommendations for Handling Price War

Between Telecom Operators in Indonesia

1)Sigit Haryadi

Telecommunication Engineering

Bandung Institute of Technology

Bandung, Indonesia

[e-mail]

2)Angelia Hermawan

Electrical Engineering Master Program

Bandung Institute of Technology

Bandung, Indonesia

[e-mail]

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Abstract—this research covers the liberation problem that could not push the operators to compete in service and network development in a fair way. In this research regarding the effect of tariff promotion war in telecommunication industry that is completed included study about the government regulation, the correlation between tariff promotion and the system of voice service traffic, benchmarking with Singapore and Kenya, and analysis. The recommendation that is brought in this research is hope that the government will apply the floor price regulation in order to protect the telecommunication industry in Indonesia.

Keywords—cost-based; promotio; regulation; RPM; cellular; tariff

I.  Introduction

A.  Background

The promotion of tariff cellular was booming since 2007. The absence of an adequate regulation regarding the cellular floor price is causing a massive competition among operators that make the price war phenomena appeared.  Tariff promotion war gradually destructs the business of cellular telecommunication. Many operators experience a decline in the income because of putting a low tariff. The low network investment and a bad quality are the results of having low income.  The 33rd Article of UUD 1945 is a constitutional justification to control/rule the important sector of the country and control many people. This is the reason for government to not allowing the telecommunication sector to fully go to private and the market mechanism. Moreover, there is a pragmatic need to assure and give the law protection to every party in this sector. This law support purpose is to guarantee the market existence in protecting the businessman and costumers, also to strengthen the telecommunication sector position to be able to develop the economy in Indonesia.

B.  State of Problem & Research Purpose

This research covers the liberation that is not able to push the operators to compete in their services and also develop the network in a fair way.

The purpose of this research is to give a recommendation to the government about the floor price regulation in order to protect the cellular telecommunication industry.

C.  Problem Boundary

Problems boundary in this research include: 1. the traffic is intended to the cellular communication traffic. 2. The regulation is intended to the regulation of tariff promotion. 3. Tariff promotion is focused to the service voice tariff. 4. Promotion term is correlated to the price war among operators. 5. The data process of costumer’s traffic voice in the West Java area is done in 168 days. The parameter that is measured is the TCH traffic (Erlang) and the sum of tariff promotion that was happened at that time. 6. Study of analysis in cellular operator has been done to the largest operator which is XL, Indosat, and Telkomsel. 7. It is not included the QoS research. 8. It is not included the discussion about the tariff constituent factor.

D.  Research Method

The research method in this research included: 1. Problem identification; 2. Word studies; 3. Study about the promotion and tariff regulation in Indonesia; 4. Research through the data process and analysis; 5. Benchmarking and regulation analysis with other countries; 6. Analysis and summary.

II.  TELECOMMUNICATION TRAFFIC & CELLULAR TARIFF PROMOTION

A.  Traffic Engineering [1][2]

Telecommunication traffic includes every form of traffic inside the telecommunication network. Telecommunication traffic involves the stochastic process as well as deterministic. Stochastic process appears due to the characteristic that is awakened by costumers; instead the deterministic process is a structure characteristic and strategy within the telecommunication system that is prepared by operators.  Optimization process in the telecommunication traffic engineer includes the network structure as well as the total adaptation and capacity device within the telecommunication traffic.

Maintain the service quality will cause the system capacity must be maximized if the traffic is increasing.

Maintain the system capacity will cause a