Strategy of National Fiber Optic Backbone Network Utilization Enhancement in Rural Area of Indonesia

Abstract

Telecommunication world is becoming innovation locomotive which fundamentally changing human life. The development of telecommunications technology embodies several systems that can increase effectiveness and efficiency of human life and economic growth of a country. Reviewing the benefits of the role of telecommunications, Government of Indonesia is building a national fiber optic backbone network called Palapa Ring in rural area by utilizing the contribution of Universal Service Obligations managed by the Ministry of Communications and Information (MCI) of the Republic of Indonesia. However, the Palapa Ring Network has a low utilization rate due to its immature business management strategy. This study analyzed the best strategies of network utilization enhancement in rural area that can be applied by BAKTI as MCI's representatives or the other organization with similar roles. The strategy analysis is carried out using the quantitative strategic planning matrix (QSPM) method, SWOT Analysis and IE Matrix. The analysis is elaborated based on the results of evaluation of internal and external factors which data collection is done using a descriptive method.The best strategy resulted from the analysis in this study is “Catalyzing 4G growth in rural areas”. This strategy is the best strategy from 5 (five) alternative strategies that have been formed. Determination of the best strategy is reviewed from the results of the QSPM method where the strategy has a value of Total Attractiveness Score (TAS) of 3.49.