Indonesia’s leading service provider, Telkomsel might be forced to share a part of its network with smaller operators, says a media report. The move is part of a proposal to liberalise the telecom sector in the country, which is likely to enhance the speed of broadband rollout over the next three years.
With around 44% market share, TelKomsel is a dominant service provider in Indonesia. Its rivals include XL Axiata, Hutchison 3 and Indosat. The change in strategy is to promote active sharing and for optimum utilisation of the infrastructure. Telekom is one of the key revenue contributors for the country. The company had paid $2.4 billion last year.
The changes are important in realizing President Joko Widodo’s vision to extend connectivity across the country by 2019.
The companies have in the past lobbied for spectrum sharing, but the government has been reluctant to change policy as it is seen as an area linked to national security.