Thursday, April 2, 2009

Bandwidth Price (4)

I just want to comment this local report. This is written by Arif Pitoyo (Bisnis) citing Galumbang Menak (CEO Gema Lintas Benua - a local Internet Service Provider). Below, I would use "GM|AP" to refer to this report. Summary of the report + my comments:

  • It is predicted that Internet bandwidth leasing cost decreases by 50% !
  • The figure would be around USD 100 to USD 300 / Mbps ! (he talked about supply cost in Java, I guess) - for comparison, in 2000 Internet via satellite links cost around USD 12 - 15 mn (?? that expensive ?)
  • In 2004, Moratel and Excelcomindo have built SDH microwave link Batam - Singapore (total capacity 2 STM-1; claimed to be the first link entirely owned by local company) - GM|AP said "because of this link, Internet bandwidth has decreased to around USD 6 mn/Mbps" (that expensive ??)
  • In 2007, as an impact of several new cables, the cost is further reduced to USD 200 / Mbps at wholesale level, and to USD 300 - 500 / Mbps at retail level (?? USD 6,000,000 to USD 300 ... ???)
  • As I read this : "Dalam tempo 3 tahun kembali terjadi penurunan lebih dari 95%. Harga 2007 hanya 5% dari harga 3 tahun sebelumnya ini merupakan penurunan harga yang paling drastis sepanjang sejarah,ujarnya" it's a bit clear, writing error! ... should be thousand not million!!
  • "Pada saat ini di tingkat wholesale, harga bandwidth Internet adalah sekitar US$50-US$70/Mbps, dan harga ini sudah bertahan dan stabil sampai 3 tahun belakangan ini" (where? Jakarta ? - or just another typo?)
  • "Bandingkan dengan harganya di negara lain seperti Jepang dan Hong Kong yang hanya senilai US$7-US$9/Mbps/bulan di tingkat wholesale. Harga transit termurah di dunia tentunya adalah di AS sekitar US$3-US$7/Mbps/bulan di tingkat wholesale" - I don't know whether GM|AP has used some results of a certain research company, but Primetrica said that IP transit (GigE full port) in Hong Kong cost around USD 36 - 37 / Mbps, in Tokyo around USD 45 / Mbps, in LA around USD 6 - 30 / Mbps!
  • "Sementara harga Internet melalui satelit, dalam 3 tahun terakhir relatif stabil pada kisaran US$1.500-US$3.000/Mbps per bulan dan diprediksi terus bertahan mengingat satelit memiliki kendala kapasitas maksimum 48 transponder" - this seems ok!
By the way, why has Galumbang Menak used "Gema Lintas Benua" instead of "Moratel" ? Did he leave Moratel after Smart Telecom's majority share acquisition?

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