Update on Indonesia Digital TV Market 2016

© Satriyo Dharmanto 2016 Business Opportunities in Digital TV
Satriyo Dharmanto
Business Opportunities in Digital TV
Jakarta, 30 Aug 2016

AGENDA
Hand eld
Indonesia Towards TV Digital
Spectrum Frequency Allocation
Existing Pay TV Industries
Indonesia OTT Experiences
5G Opportunity for digital Broadcasting
Global ICT Figures

TV DIGITAL
Terrestrial Hand Held Satellite Cable IPTV OTT

ICT is Driving Force Behind Economic Growth
Source: http://www.worldbank.org/
 Technological progress is a considerable driving force behind
economic growth, citizen engagement and job creation.
 Information and communication technologies (ICTs), in particular,
are reshaping many aspects of the world’s economies,
governments and societies.
 In developing countries, public officials, businesses and citizens
are working together to harness the transformative power of ICTs
to make services more efficient, catalyze economic development
and strengthen social networks.

ICT Facts & Figures
15 years of ICT growth
There are more than 7 billion
mobile cellular subscriptions,
corresponding to a penetration
rate of 97%, up from 738
million in 2000
Mobile broadband is the most
dynamic market segment;
Mobile broadband penetration
reaches 47% in 2015, a value
that increased 12 times since
2007
The proportion of households
with Internet access at home
increased from 18% in 2005
to 46% in 2015
The proportion of the
population covered by a 2G
mobile-cellular network grew
from 58% in 2001 to 95%
in 2015
Source: ITU.
Note: * Estimates.

3G mobile-broadband coverage is extending rapidly and into the rural areas
ICT Facts & Figures

By end 2015, 34% of
households in developing
countries have Internet
access, compared
with more than 80% in
developed countries
Percentage of households with Internet access
In least developed
countries (LDCs), only
7% of households
have Internet access,
compared with the world
average of 46%
ICT Facts & Figures
Source: ITU.
http://www.itu.int/

Percentage of individuals using the Internet
ICT Facts & Figures
Internet penetration in
developing countries
stands at 35%; LDCs lag
behind with only 10%
Source: ITU.
http://www.itu.int/

Mobile broadband subscriptions
ICT Facts & Figures
Mobile-broadband
penetration levels are
highest in Europe and
the Americas, at around
78 active subscriptions
per 100 inhabitants
Source: ITU.
http://www.itu.int/

Fixed-broadband subscriptions
ICT Facts & Figures
Fixed-broadband
penetration remains at
less than 1% in LDCs
Africa and the Arab
States stand out as
the regions with the
fewest fixed-broadband
subscriptions per 100
inhabitants, at less
than 1 and less than
4, respectively
Source: ITU.
http://www.itu.int/

Fixed broadband subscriptions: developing countries lag behind as prices stagnate
ICT Facts & Figures
Fixed-broadband
uptake remains slow in
developing countries
and particularly in LDCs.
Source: ITU.
http://www.itu.int/

AGENDA
Indonesia Towards Digital TV

Social Media, The most active communication tools
Digital Phenomenon, to reach 100Mn users:
-Telephone (75 Yrs)
-Television (20 Yrs)
-Mobile (16 Yrs)
-Facebook (4 Yrs)
-Instagram (2 Yrs)
-Pokemon Go (2 weeks)

SEA ICT spending in 2015
(Source: IDC)

Typical Diagram of Analog Terrestrial TV

© Satriyo Dharmanto 2016 Business Opportunities in Digital TV16
No. of Transmission sites
Current Analog Terrestrial TV Network
376376
5252
4141 4343
4747
4040
3131
2626
3030
2727
5252

17
• Adi TV • Agropolitan TV • Amuntai TV • Bali TV • Bandung TV • Batam TV • Batu
Televisi • BiTV • BMS TV • Bogor TV • Borneo TV • Bunaken TV • Cahaya TV •
Cakra TV • CB Channel • CT Channel • Da Ai TV • Deli TV • Dhamma TV • Elshinta
TV • Fajar TV • Fativi • Ganesha TV • Gorontalo TV • GOTV • Gemilang TV •
Gajayana TV • GNTV • JakTV • Jogja TV • JTV • Karesidenan TV • Kendari TV • L
TV • Logis TV • Lombok TV • Mahameru TV • Malang TV • Minang TV • Makassar
TV • Megaswara TV • MQTV • O Channel • PKTV • Pacific TV • Padjadjaran TV •
Palembang TV • Pro TV • Rantau TV • Ratih TV • RBTV • Riau TV • Riauchannel •
SAM TV • SJTV • Spacetoon (TV Anak) • SSTV • STV • TA TV • Tarakan TV •
Televisi Tegal • Televisi Manado • Tugu TV • TV Borobudur • TVKU
Locals TV

Income
About 3000+
Digital migration soon
Diversity of TV Operator Income
Government
Private, Advertising
Private, Subscription
Community, TV

Dominancy of Current TV Ownership
19
Others
01.
02.
03.
04.
05.
06.
07.

Land Area 1,811,570 SQKM
 36 Provinces
 440 Cities / Districs
 746 Different languages
 3 Time Zones
 17,000 Islands
 Satellite Network, the main backbone for
TV Broadcasters, first launch 1976
 6 hours Dirct Flight Jakarta - Papua
Jakarta
1 2 3 4 5 6
 The Indonesian Broadcasting & Cable market had
total revenues USD5,4bn in 2015, CAGR14,2%
 End 2020 is expected to USD9,3bn (source:
Market Research)
Indonesia Geographic

TVs Milestones in Indonesia
1962 1989 1990
24 Aug 1962
Monopoly
Era
1993 1994 2000 2001
Analog TV Era Digital TV Migration
2003 2007
DVB-T
As National Standard
Minister Decree No.
07/P/M.KOMINFO/3/2007
Decision
Ministry decree, No.
05/PER/M.KOMINFO/2/2012
2012
Basic concept of
digital TV FTA
No.39/PER/M.KOMINF
O/10/2009
2009
No. 22/PER/M.KOMINFO/11/2011
Implementation of digital TV FTA
Frequency master plan
20111995 2013 2015 2016
Trial Telecommunication,
Informatics and
Broadcasting
No. 5 Year 2016
MoU TVRI-Content Providers
9 Juni 2016
22 Sept 2015
Pending of License
of 33 License holders
Digital TV FTA Operators
Pay TV
2002
Broadcasting Law
No. 32/2002
Class Action
ATVJI and ATVLI
Digital TV Simulcast & Trial

Class Actions For Digital TV Terrestrial
2003 2007
DVB-T
As National Standard
Minister Decree No.
Decision
Ministry decree, No.
05/PER/M.KOMINFO/2/2012
2012
Basic concept of
digital TV FTA
No.39/PER/M.KOMINF
O/10/2009
2009
Implementation of digital TV FTA
Frequency master plan
No. 35/PER/M.KOMINFO/2012
STB for Digital TV Terrestrial
2011 2013 2015 2016
Trial Telecommunication,
Informatics and
Broadcasting
No. 5 Year 2016
MoU TVRI-Content Provider
9 Juni 2016
Court Ruling
State Administrative Court
(PTUN) Jakarta No.119/G/2014/
PTUN.JKT, 5 Mar 2015.
State Administrative High Court
No.140/B/2015/PT.TUN.JKT
7 July 2015
22 Sept 2015
Pending of License
holder of Digital TV
Operators
2002
Broadcasting Law
No. 32/2002
Forming National Team
On Digital TV
Minister Decree No.
03 April 2013
Ruling Justice of
Supreme Court (MA)
38 P/HUM/2012
40 P/HUM/2012
2005
Networks TV
PP No. 50/2005
Multiplexing
zona 4, 5, 6,
7 and 15
Multiplexing
Zona 1 & 14

Analog TV (UHF)
478 MHz 806 MHz
Digital TV DVB-T2 Digital Dividend
478 MHz 694 MHz 806 MHz
30%
 Additional services, interactive and HDTV
 Open BTS, Google Loon, Public
Protection and Disaster Relief (PPDR),
5G, NB IoT, Mobile multimedia
applications
 Mobile communications
 Wireless broadband access systems
Digital Dividend

Existing Pay TV Industries

 Indonesia's pay-TV market is characterized by a very low household penetration, which
reached only 3 percent in 2010 and expanding to 7 percent by 2015,
 Currently Indovision and Telkomvision/Transvision are dominate the market, with about
60 percent of total pay-TV subscribers in 2015
 Some other Pay TV providers via DTH : Orange TV, KVision, OK Vision, Top TV,
Topas TV are coloring the market,
 Cable TV operators : First Media (Kabelvision), IndiHome, Indosat Mega Media (IM2)
and My Republic, (Moratelindo).
 The country's geography structure is archipelagic, so DTH technology based will
remain the dominant technology, accounting for about 88 percent of total pay-TV
subscriptions through 2015.
Pay TV Industries

Opportunities and Challanges of Pay TV Industries
New Technology
Vendor
ompetition
Fast Growth
Global Partners
Piracy
Churn
Unfavorable
Regulation
Free fight
Competition
Positives Negatives
Low Penetration
Dominancy
Analog FTA-TV

Budget
Mid
Premium
Price of Basic Package
# of Premium Channels

Frequency Allocation

850 MHz 2,300 MHz
UMTS/LTE
850 MHz
UMTS
900 MHz
LTE
1,800 MHz
Digital Dividend
700 MHz
LTE
2,300 MHz
New New
5G Bands
Multi Operators, spectrum Sharing
Source: Denny Setiawan, Directorate of Spectrum Policy and Planning,
The Ministry of Information and Communication Technology
Spectrum Frequency Sharing

Indonesia OTT Experiences

Changing Attention Curves

Changing Daily Life

*Covering 40 countries globally. Source: Digital TV
High Growth on OTT

High Growth on OTT
Any distribution technology
All type of devices
OTTCable IPTVTerrestrialSatellite
Smart TV STB
CAM
Smartphone
and tablet
PC/MAC
Game

High Growth on OTT
Global CDN Providers:
Akamai Technologies,
Amazon CloudFront,
CloudFlare,
Cotendo,
EdgeCast Networks,
AT&T Inc.,
Deutsche Telekom,
KT (formerly Korea Telecom), KPN
Global OTT Providers:

 Network Access Point / NAP: current 49 operators
 Internet Service Providers / ISP: 220 operators
 Internet Telephony for Public Communications / ITKP: 27 operators
 Data Communications System / Siskomdat: 11 operators
 Multimedia Services Licenses
 IPP : Broadcasting License (Ijin Prinsip Penyiaran)
Source : Kominfo September 2012
Current Network Operators:
Jartaplokal: 5 licenses
Jartaplokal packet switched: 29 licenses
Jartup: 72 licenses
SLJJ: 2 licenses
SLI: 3 licenses
Trunking: 3 licenses
Seluler: 8 licenses
Satelit: 1 licenses.
Licenses Needed to operate OTT
Current Services Operators
Jasa teleponi dasar: 2 licenses
Jasnita premium call: 18 licenses
Jasnita call center: 10 licenses
Jasnita calling card: 9 licenses
Jasa multimedia ISP: 230 licenses
Jasa multimedia NAP: 48 licenses
Jasa multimedia ITKP: 26 licenses
Jasa multimedia sistem komunikasi data: 11
licenses.

5G Opportunity for Digital Broadcasting

TV Digital in 5G Era
 New Services and Business Models,
 Cloud RAN
 Heterogeneous RAN (HetRAN)
 Integration of Multi-RATs
 Access Agnostic
 Network Convergence Sublayer (NCS)
 Network Management and Orchestration:
Band Width Usage:
3G  10MHz; 4G  100MHz; 5G  300 – 1,200MHz
Source: Nokia

Set of eight 5G requirements:
1 -10Gbps connections to end points in the field (i.e. not theoretical maximum)
1 millisecond end-to-end round trip delay (latency)
1000x bandwidth per unit area
10-100x number of connected devices
(Perception of) 99.999% availability
(Perception of) 100% coverage
90% reduction in network energy usage
Up to ten year battery life for low power, machine-type devices
5G Characteristics

Thank you
satriyo.dharmanto@gmail.com
satriyo.dharmanto@conax.com
40

Update on Indonesia Digital TV Market 2016

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