JAKARTA (IndoTelko) - Indonesian Minister of Communications and Information Technology (MCIT) Rudiantara finally spoke up about Google's Project Loon program.
"We need to clarify the information about Google's Project Loon to avoid any misunderstanding," said the Minister Rudiantara lately.
The minister said that earlier Google officials who is in charge of Project Loon had met him to discuss on the matter.
"They will take the Loon Project to Indonesia, precisely technical tests in our air space without any commercial implications. I then thought, do we leave or try to catch this opportunities?," Rudiantara said.
"They asked to use the 900 MHz frequency, but then I said the frequency s full as its occupied by Telkomsel, Indosat, and XL. Then they asked for the 700 MHz frequency, where analog broadcasts frequency is still available. I then reiterated them that we can't provide a new license because Indonesia has set the regulation to have no more new network operators, we are about to consolidating the old ones," Rudiantara said.
In the end, Google officials said that they would cooperate with the existing operators for the technical test.
"I cannot mention the operator's name, but they will sign a Technical Test agreement later about it. Frankly, I am somewhat confused after reading such news in the media yesterday, an affiliate of the operators that will sign the agreement refuses the Project Loon," Rudiantara said.
The minister said that Project Loon's business model is not yet clear and can not be compared with the construction of the Palapa Ring's fiber optics that is being tendered by the government.
"When it comes to efficiency, would not be the same as the Palapa Ring. Palapa Ring will be the backbone in the deployment of broadband infrastructure here," he said.
XL President Director Dian Siswarini admitted that she does not mind on the plan of Project Loon that will hold a technical test with one of the operators in eastern Indonesia.
"There is no problem with Project Loon. We are glad, because you have to know that it is not easy to build telecommunications infrastructure in rural areas. If there are alternative technologies that could be a solution, why don’t we try," she said.
Dian said that in adopting a new technology does require a technical test to prove it is proven or not.
"Well, usually the business model can be figured through the trial that. We've done this with Facebook.org, along the way our business model just didn't meet, then we let go of it," she said.
Dian said that XL never had any conversation with Google relating to the Project Loon trial. While Indosat has formed a partnership with Facebook for Facebook.org, surely we are just waiting for confirmation from Telkomsel related to this trial plan.
Earlier, Telkom's Innovation and Portfolio Strategic Director Indra Utoyo warned that if Google wants to get into the business of Internet network provider in Indonesia should obey the existing regulation to have a license and pay some obligations such as the Frequency Usage Fee (BHP).
"If you come with a disruptive technology that may endanger the national telecommunications industry, because all operators have already set the budget on their investment up to trillions of Rupiah, from building the network to license," Indra said.
In Australia, Google has tested the Project Loon by cooperating with the local telecommunications operator, Telstra. Project Loon launched 20 air balloons in the western part Queensland but Google did not buy or rent a frequency there.
In this project, Telstra issued permission to the Project Loon to access the base transmission stations (BTS) network and utilizing the 2.6 GHz frequency spectrum. Later, residents will receive a Wi-Fi connection in their computer.(es)