Regulatory Framework Analysis of Infrastructure Sharing for Mobile Operators in Indonesia by Using Regulatory Impact Analysis Approach

Abstract

Concernment about the operators capability to conduct for development of telecommunication infrastructure fairly and equitably throughout Indonesia has become a question. This is due to the financial condition of current operators, especially non-dominant operators, in not good conditions. A way that can be done by the operator, especially non-dominat operators, is to do efficiency on the expenditure through infrastructure sharing. However, the infrastructure sharing can also affect competition among mobile operators, including changes in the landscape of the operator's business model. This research aims to propose a regulatory framework of infrastructure sharing for mobile operators that appropriate to be implemented in Indonesia. The results of the analysis using Regulatory Impact Analysis show that the existing regulation is time to change, so that the new regulation is expected to encourage commercially sustainable and healthy business environment for all mobile operators. A regulatory framework allowing mobile operators to perform MORAN scheme can be accepted by all stakeholders, except by dominant operator with relatively little resistance level. The result of analysis using Cost and Benefit Analysis is net benefit Rp. 52.18 trillion for 5 years, and Competitive Impact Analysis is positive value, 60.