Is Telkom-Flexi the New Telkom-Instan: Can it Level the Playing Field and Bridge the Digital Divide

摘要

During the first three quarters of 2003, the issues surrounding the new product Telkom Flexi ('TF' or 'FLEXI') suggest that it is increasingly posing a serious threat to the competitiveness of non-incumbent telecommunication operators in Indonesia. FLEXI appears to not only aggravate further the already unleveled playing field but also brushes aside the existing regulation and warnings from the regulator. There is every indication that the FLEXI rollout planned for urban areas is aimed mainly as a complementary product. Some announced pricing schemes for the Internet access are clearly giving FLEXI an added advantage and the rules governing local traffic will determine future competition. If this status quo is allowed to prevail, the likely outcome may not too different when Telkom introduced its Internet access 'Telkomnet Instan' (or T-instan) in 1999, in that such a new product will seriously affect its competitors. In the cellular market, FLEXI could rapidly reduce the market share of other GSM operators, particularly in Greater Jakarta and Surabaya Metropolitan areas. In the Internet access market, FLEXI could exert further pressure on the remaining ISP operators who have already lost much of their market shares as a result of T-instan. Any failure to thwart it must mean that Telkom will increase its dominance over its GSM competitor further as well as threaten some ISP competing services. The real tragedy is that Indonesia's tele-density will not be significantly increased either, contrary to the regulator's expressed wishes in ironically allowing the introduction of FLEXI.