Still fresh in the public memory of how the business ISP (Internet Service Provider) to grow rapidly in line with the introduction of internet technology a few years ago. Noted decades ISP companies that have enrolled in the Department of Posts and Telecommunications offers the service connection to the internet backbone with the charge of each. Portfolio market segments they are quite clear, namely individuals and companies (retail and corporate). At first the performance of each company is promising, to a point where the number of subscribers past the critical point so that the existing access to be slow due to limited bandwidth. Competition in the customer seized during the crisis period has made a large number of ISPs are forced to close his business, while others decided to conduct mergers and acquisitions to prevent it from folding. Recently re-bergeliat ISP business after the introduction of VoIP (Voice over Internet Protocol). Will the same events over and over again in this industry? It is better observed in a fundamental phenomenon, both in terms of micro and macro environment (Indrajit, 2000).
On the micro level, the key to success lies in the ISP business how high quality the company's capability to do the convergence of three main aspects, namely: computing, communication, and content. Aspects of computing stresses that a brain or central computer technology from a company's ISP because all available resources are controlled by this smart machine. Of course, the more the number of customers and the increasingly diverse types of services offered, will be increasingly complex, large, and expensive computer specifications that must be possessed.
The next aspect is communication, which emphasizes on how extensive range of services and how quickly access to the internet connection. If the coverage factor is determined by the geographical coverage in which an ISP can be accessed by the subscriber, the access speed connection will greatly depend on the amount of bandwidth and other related communications equipment (such as routers and modems). Last aspect that will determine the rise and fall of the ISP business is content. Content is defined as an entity that is exchanged or traded by the community through the Internet connection. If in a few years ago, the content is only represented by the bits in the format of text and pictures (image), then today has evolved into an audio and video. Integration between data in the form of text, images, audio, and video is what gave birth to the concept of multimedia which will become the daily human needs that can be accessed online and realtime in a virtual world (cyber space).
At the macro level, a relevant factor to be analyzed and taken into consideration is the tendency of the direction or trend of telecommunication industry in the world. The development of the Internet in the United States to advance rapidly because of the cost of local telephone and electricity payments have reached the level of flat rate (the customer pays a fixed fee per month regardless of how long the telephone and electricity consumption). Or in other words, indirectly the local telephone has become a "public goods" for society. Of course, customers will choose to connect to the internet through a telecommunications infrastructure that has been owned at this time, because in addition been sufficient to meet their needs, biayanyapun "free." For multimedia relations, while they must pay a fee first. However, this cost will come down gradually, in accordance with government's strategy against all types of infrastructure, until eventually you reach the stage of a flat rate. In Indonesia, the situation that occurred inverted. Telephone fee progressively increased, so that "until whenever" people will never enjoy a "free" or at least very low cost. Community's decision to begin to experiment using VoIP or other related Internet technology is actually not only the impact of technological advances that are difficult to dammed, but rather a manifestation of "powerlessness" of the national telecommunications industry in the era of globalization. One thing to remember, that when the time comes the concept of free trade have been implemented, state boundaries become irrelevant. It is not impossible to happen later that customers in the homeland, whether individual or corporate, will prefer ISPs from Singapore, Malaysia, Hong Kong, or even Brunei, because in addition they have the computing infrastructure, communication, and more reliable content, products and services they offer are also much cheaper, better, and faster (cheaper, better, and faster).
So, inevitably, like it or not, the performance of the ISP industry in Indonesia at this time will depend on government regulations. No matter whether Telkom and Indosat will still get exclusivity rights from the government or otherwise the government will spawn deregulation allowing new players into the telecommunications industry, as far as the wider community to gain access to the internet with very cheap price, then at the same time a local company ISPs have been ready to compete with other global players. When the time comes aspects of computing and communication has become a "public goods", competition will only lie in the element content. It was then that creativity will be tested by the company ISP business means the business of creativity and content packaging, something that becomes a great weakness of Indonesia at this time. We have changed from content producers instead of content consumers
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