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Regulatory incentives in Indonesia

In this paper some telecommunication regulatory incentives are described. Network sharing is one of among other incentives that has been proposed. However this incentive creates some disturbance to the telecommunication level of playing field. This paper examines the solution of network sharing and co-investment by multiple operators and potentially other sources, including the government itself, in building this new infrastructure. Commercially driven network sharing has been prevalent in the mobile sector, particularly in those countries with very competitive mobile markets, but it is still relatively rare in comparison for co-investment to occur in the fixed sector. However, in examining options for encouraging and incentivising sharing, governments also need to take note of the fact that sharing arrangements are complex and have often proven difficult for operators to commercially agree in practice and a number have not survived for very long. This paper considers some reasons why, despite the cost and risk sharing benefits to operators, there have not been more enduring sharing arrangements.