KemKominfo formulating passive infrastructure sharing rules

22 Sep 2017

Indonesia’s Ministry of Communications and Information Technology (MCIT, known locally as KemKominfo) is reported to be working toward the introduction of new rules to encourage the development of passive infrastructure sharing (including telecoms and civil/mechanical/electrical infrastructure/equipment/property, such as pipes [ducts], poles, towers, cabinets, manholes, handholes, shelter space and others). IndoTelko notes too that the ministry is also interested in active telecoms infrastructure sharing, suggesting that ‘possible future guidelines will also be made’ in that area. The government is said to be considering passive sharing in areas that already have infrastructure in place (dubbed ‘brown field’ sites) and areas where new infrastructure will be built (i.e. ‘green field’). If realised, KemKominfo believes that sharing could save operators about 40%-60% of capital expenditures and operating expenses, allowing them instead to focus on extending the services, strengthening their sales and marketing activities and in turn, drive down end user prices.

Indonesia, Ministry of Communication and Information (MCI)