Jakarta needed a new metro loop to meet its growing ICT demand. The challenge was how to build this much needed infrastructure, without the traditional expensive non-competitive overbuild by ICT and telco providers - rolling out their own networks to create barriers to other providers accessing their customers. Traditionally the telecommunication and ICT sector was born out of the monopoly, state-owned, Post and Telecommunication service, where governments viewed their telecommunication sectors as strategically important and requiring of state ownership and control. As many of these entities were sold off to the private sector, the network and customer services parts of the former state-owned providers became regulated monopolies or duopolies, that continued to use their existing networks as barriers to new entry and competition.
TSC fielded a team of telecom, ICT, infrastructure, and regulatory experts who developed a strategy to design a True Open Access network model for the development and roll-out of the proposed metro-loop fiber-optic network. Essentially the model proposes the separation of ownership and operation of the monopoly part of a network, from the ownership and delivery of services, with the former being regulated as a monopoly and the latter regulated by open market competition. This model provides the least cost, best value ICT services for consumers on a long-term sustainable basis, removes economic destruction from overbuild, and reduces regulatory oversight required.
A True Open Access model was developed that maximized the use of the proposed new metro network and minimized capital expenditure and unit cost, with the added benefits of speeding the adoption of new products, improving competitiveness, and preventing anti-competitive build-out. This new approach changed the business model for ICT away from that which favored the incumbent.