Indonesia - Telecommunications Sector Modernization Project
Bhala, Raj
The Telecommunications Sector Modernization Project supports, and is predicated on a comprehensive reform program for the telecommunications sector. The reform is based on three key elements: entry of world class operators, competition in all segments of the sector, and reorganization of the established public telecommunications service provider. The project has three components. The policy component entails: 1) reviewing and developing as appropriate the telecommunications legal and regulatory environment to ensure effective entry of private investors and operators in the telecommunications sector; 2) strengthening the capability of the Ministry of Tourism, Post and Telecommunications to manage regulatory issues including monitoring and evaluating operators' performance in the emerging multi-operator environment; 3) reviewing the management and allocation of radio frequency spectrum and 4) developing a plan for the provision of rural telephone services on a commercial basis. The investment component includes: 1) installation of local and inter-exchange networks to add one million telephone lines; 2) installation of a second fiber optic back-bone system; 3) installation of submarine optical fiber cable transmission systems; and 4) enhancement of information systems. The technical component will support: 1) strengthening the project implementation, marketing, customer services capacities; and 2) improving TELKOM's managerial capabilities.
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