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Internet providers say cutthroat competition causes slow speeds
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A tower owned by PT Dayamitra Telekomunikasi (Mitratel) is pictured in an undated photograph in Langsa, Aceh. (Mitratel/-)
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any internet business players have called for government intervention to deal with the excessive number of internet service providers (ISPs) saturating the market, which they blamed for fueling cutthroat competition and dragging down efforts to improve the country’s internet quality.
However, experts said the sheer number of players is not to blame, but that the uneven distribution of players in less developed areas leads firms to fight over profitable areas.
There are currently more than 1,000 ISP firms operating in Indonesia according to the Association of Indonesian Internet Providers (APJII). That figure is almost double the 584 ISP firms operating in India, despite the country’s far larger economy and market.
“Let me ask you this, with a thousand of them, what should we do? Halt them? Ensure fair distribution? Or just let more companies get permits despite the situation?” APJII chairman Mohamad Arif told reporters on Tuesday.
He added that at least one business ISP permit was filed daily and the association could not limit the number of permits issued.
Acknowledging the market’s vastness and ease of entry, Arif noted downsides including an unhealthy price war, slow business growth and lagging internet quality improvement.
Additionally, ISPs tend to centralize in lucrative markets, which also exacerbates the issue, he said.
