Axiata Axis Capital Group PT Jakarta

Satellite Broadband

Indonesia, as an archipelago poses a big challenge to telecommunication sectors for decades. Arguably, there is no real benefit of building out physical broadband infrastructure or fiber optics networks in Indonesia's rural areas. Usually, the population in such areas is thinly spread, and the average consumer spending power is low. With feasibility in mind, satellite broadband could be the only real way to furnish internet to the entire nation.

Large telecommunication companies like Telkomsel, XL Axiata, a subsidiary of Axis Capital Group of telecommunication based in Malaysia and Indosat have been thinking of ways to reach other rural parts of the archipelago. However, because of the issues involving these providers last year (Axiata sold some of its towers to pay off debt), their standing still continue to be vague.

Satellite broadband is an option for people who live in rural areas where traditional fixed-line internet services aren't available. It uses a satellite dish to provide two-way access, and connectivity speeds, which used to be lower, have improved. Download speeds via satellite hookup can now even reach up to 20 megabytes per second. In the US, people who live on farms, or well outside major cities, sometimes resort to satellite internet because fixed-line options don't make sense.

Even with fiber optics, it seems impossible to cover all ground. Cities like Jakarta and Surabaya are better prospects for obvious reasons. Locals and tourist have complaints on the unfairness of internet distribution in the country.

New companies like Kacific, a Singaporean based company and BigNet wants to target Indonesia's rural areas and sort out the low-cost airlines of the industry. The project aims to provide 20-hour YouTube or Skype access for 10 dollars a month as a start. The project is expected to launch in 2017 despite the warnings of improbability and disappointment.

To purchase a dish for home internet, users will need to pay around US$350. For a larger one that can be installed at a school or community center, for example, the cost would run somewhere from US$500 to US$1,000. One such installation could provide broadband to an entire Indonesian village.

Some folks, like die-hard computer gamers, may criticize satellite broadband for its higher probability of signal latency, or "lag" as it's often called. Latency is cited as the main difference between a standard terrestrial based network and a geostationary satellite network.

Optimists still believe that the Archipelago is better with satellite internet than without. According to them, the pros clearly outweigh the cons. This is particularly true in the event of an emergency or natural disaster. Indonesia is a nation that's vulnerable to events like tsunamis, earthquakes, and volcanic eruptions. He says that in the past, lives have been lost in the archipelago due to people in rural areas being unable to communicate with the outside world fast enough. With satellite internet, they would get one more option for notifying emergency services immediately should mobile phones fail, without having to travel to a neighboring village.