Indonesian Political, Business & Finance News

APJATEL proposes OVC to streamline fibre optic network deployment

| Source: ANTARA_ID Translated from Indonesian | Infrastructure
APJATEL proposes OVC to streamline fibre optic network deployment
Image: ANTARA_ID

Jakarta (ANTARA) - The Association of Telecommunications Network Providers (APJATEL) has proposed the formation of an Operating Vehicle Company (OVC) as a solution to improve the deployment of fibre optic networks in Indonesia, which is currently deemed to incur high costs.

The OVC is envisioned as a neutral entity tasked with jointly managing passive telecommunications infrastructure and fostering collaboration between industry players and the government to align efforts.

“Telecommunications infrastructure forms the backbone of the digital economy and modern public services. Therefore, strong synergy between the government and industry is required to ensure its management is not only efficient but also oriented towards public interests,” stated APJATEL General Chairman Jerry Mangasas Swandy during a discussion event held in South Jakarta on Thursday.

The OVC promotes the principle of managing digital infrastructure with open access, meaning the physical networks built can be utilised by more than one telecommunications service provider.

This approach is hoped to reduce the investment costs for fibre optic networks. The efficiency in costs that the industry expects to achieve through this method is around 40 to 60 per cent.

In addition, the presence of the OVC is expected to accelerate the expansion of networks.

Director of Digital Infrastructure Acceleration at the Ministry of Communication and Digital Affairs, Mulyadi, stated that the government is ready to collaborate to realise the proposal for establishing an OVC in Indonesia.

To realise this idea, collaboration can be undertaken to formulate technical standards and guidelines for infrastructure sharing, promote the implementation of open access systems, and establish qualifications for contractors and installers of fibre optic deployment to make the networks more orderly and not disrupt urban aesthetics.

“The OVC must adhere to principles of open access, non-discrimination, and create healthy business competition,” said Mulyadi.

“The OVC must not become a new form of covert monopoly in telecommunications infrastructure deployment in regions that could hinder the rollout of fibre optic infrastructure,” he added.

Most importantly, according to Mulyadi, the OVC must make the deployment of fibre optic networks increasingly transparent for all industry players.

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