Fixed broadband is the wired technology that delivers high-speed internet access over a fixed cable or fiber-optic connection. Fixed broadband penetration has been increasing steadily in most regions around the globe.
High-speed broadband allows customers to enjoy many benefits, i.e., triple-play offerings. These packages offer voice, data, and multichannel video services to customers over one network. The internet service providers can provide other services such as home security and smart grid energy monitoring. That has significant advantages for both businesses and consumers because it cuts down on installation costs and ensures all the services are delivered seamlessly.
A World Bank study noted that a ten percentage point increase in fixed broadband penetration could increase the gross domestic product (GDP) by 1.21 percent in developed countries. In developing countries, the increase is up to 1.38 percent. Meanwhile, every ten percent strengthening of fixed-broadband points can increase GDP per capita by 1.19 percent in developed countries and 1.35 percent in developing countries. (World Bank. 2016)
Fixed-broadband adoption in Indonesia is growing. The subscriptions have doubled to more than 10.7 million in 2020, from just over 5.3 million in 2016. (ITU, 2021) Indihome, Telekomunikasi Indonesia’s fixed-broadband business line, is the largest fixed broadband service in Indonesia, now serves 8.3 million customers in 496 cities and regencies in Indonesia. (Telkom, 2021)
In terms of quality, Indonesia’s fixed-broadband subscribers may enjoy a level of service comparable to some of its peers in the region. Most of the fixed broadband subscribers in Indonesia (89 percent) enjoy a speed of more than 10 Mbps on their service (ITU, 2020). That is higher than Malaysia (83 percent). Countries like China, Japan, or Thailand enjoy more than 10 Mbps on more than 90 percent of their broadband services.
Fixed broadband penetration in Indonesia is still low. Relative to the population, Indonesia only has four fixed-broadband subscribers per 100 people, compared to the Asia Pacific region’s median of 14 subscribers. Indonesia is better than India, which registered only 1.6 percent fixed-broadband penetration, or Pakistan (1.1 percent). Still, it is far behind its neighbor Malaysia, which registered more than 10 fixed broadband subscribers per 100 inhabitants last year. In the region, South Korea has the highest penetration ratio, with 43.5 subscribers per 100 people, followed by Hong Kong (38.3 subscribers) and Australia (35 subscribers).
The fixed-broadband penetration in the country faces challenges, particularly in terms of costs. The Indonesian government, under the 2014-2019 Broadband Roadmap, set a target to reduce the broadband cost to 5 percent of income per capita (Kominfo, 2014). While the country achieved the target for mobile broadband,
Today, the fixed-broadband subscription costs almost 11 percent of monthly GNI per capita in Indonesia. In comparison, the global median cost is just above 3 percent. According to the UN Broadband Commission on Sustainable Development (ITU, 2018), the cost for broadband access should not exceed 2 percent of monthly income per capita in developing countries, to ensure that half of the world population — mostly from low income groups — can afford and access the internet.
Submarine cables have become a major economic factor in the last 35 years. Without submarine cables, it is difficult to imagine how the current global economy could function.
Digital skills are becoming an important requirement for employment across the economy, as it moves through the process of digital transformation.
Fixed broadband is the wired technology that delivers high-speed internet access over a fixed cable or fiber-optic connection. Fixed broadband penetration has been increasing steadily in most regions around the globe.
High-speed broadband allows customers to enjoy many benefits, i.e., triple-play offerings. These packages offer voice, data, and multichannel video services to customers over one network. The internet service providers can provide other services such as home security and smart grid energy monitoring. That has significant advantages for both businesses and consumers because it cuts down on installation costs and ensures all the services are delivered seamlessly.
A World Bank study noted that a ten percentage point increase in fixed broadband penetration could increase the gross domestic product (GDP) by 1.21 percent in developed countries. In developing countries, the increase is up to 1.38 percent. Meanwhile, every ten percent strengthening of fixed-broadband points can increase GDP per capita by 1.19 percent in developed countries and 1.35 percent in developing countries. (World Bank. 2016)
Fixed-broadband adoption in Indonesia is growing. The subscriptions have doubled to more than 10.7 million in 2020, from just over 5.3 million in 2016. (ITU, 2021) Indihome, Telekomunikasi Indonesia’s fixed-broadband business line, is the largest fixed broadband service in Indonesia, now serves 8.3 million customers in 496 cities and regencies in Indonesia. (Telkom, 2021)
In terms of quality, Indonesia’s fixed-broadband subscribers may enjoy a level of service comparable to some of its peers in the region. Most of the fixed broadband subscribers in Indonesia (89 percent) enjoy a speed of more than 10 Mbps on their service (ITU, 2020). That is higher than Malaysia (83 percent). Countries like China, Japan, or Thailand enjoy more than 10 Mbps on more than 90 percent of their broadband services.
Fixed broadband penetration in Indonesia is still low. Relative to the population, Indonesia only has four fixed-broadband subscribers per 100 people, compared to the Asia Pacific region’s median of 14 subscribers. Indonesia is better than India, which registered only 1.6 percent fixed-broadband penetration, or Pakistan (1.1 percent). Still, it is far behind its neighbor Malaysia, which registered more than 10 fixed broadband subscribers per 100 inhabitants last year. In the region, South Korea has the highest penetration ratio, with 43.5 subscribers per 100 people, followed by Hong Kong (38.3 subscribers) and Australia (35 subscribers).
The fixed-broadband penetration in the country faces challenges, particularly in terms of costs. The Indonesian government, under the 2014-2019 Broadband Roadmap, set a target to reduce the broadband cost to 5 percent of income per capita (Kominfo, 2014). While the country achieved the target for mobile broadband,
Today, the fixed-broadband subscription costs almost 11 percent of monthly GNI per capita in Indonesia. In comparison, the global median cost is just above 3 percent. According to the UN Broadband Commission on Sustainable Development (ITU, 2018), the cost for broadband access should not exceed 2 percent of monthly income per capita in developing countries, to ensure that half of the world population — mostly from low income groups — can afford and access the internet.
Submarine cables have become a major economic factor in the last 35 years. Without submarine cables, it is difficult to imagine how the current global economy could function.
Digital skills are becoming an important requirement for employment across the economy, as it moves through the process of digital transformation.
