Hubber strategy and regulation

Abstract

Hubber system is proposed as a solution for Indonesian Telecommunications problem in the era of global trend, where the sustainability of Indonesian Telecommunications operators is threatened as the result of the evolvement of OTT communication service (IP-based) that substitutes the traditional operator's communication services (non IP-based), SMS and telephony.The definition of hubber proposed in this paper is: a hub for IP-based communication between either OTT provider or global CDN and Indonesian network provider that is embodied in Telecommunications network and distributed data center infrastructure. As a Point of Interconnection, hubber has administrative aspect, business aspect, and technical aspect. Revenue forecasting has been done to Telkomsel -the largest Indonesian operator, and the result shows that Telkomsel's revenue will go down for the first time in 2015. To achieve positive 7% revenue growth, Telkomsel has to set its revenue target from hubber of 4.83 trillion Rupiahs in 2015 with a steady increase in annual growth and reaching almost a tenfold increase in value, 46.14 trillion in 2020.