Accelerating FTTH Deployment
As the global fiberization process accelerates, FTTH has found widespread deployment worldwide for its excellent technical features such as ultra-high bandwidth, long-haul transmission, and energy efficiency, making it a critical access technology for fixed broadband networks. However, due to Indonesia’s extensive island geography, the cost of FTTH construction remains high, resulting in a relatively low maturity in fixed broadband infrastructure with a penetration rate of only 17%. To improve national broadband accessibility and boost digital growth, the Indonesian Ministry of Communication has outlined strategic broadband network development goals for the 2020–2024 period. This plan aims to increase the country’s fixed broadband penetration rate to 30%, necessitating the construction of approximately 28 million lines of FTTH networks. As a leader in Indonesia’s fixed-line market, Link Net actively responds to the national strategy and has launched large-scale FTTH deployments in regions like Java, Sumatra, Sulawesi, and Kalimantan according to its own growth plans.
New Challenges
Link Net, the second largest fixed-line operator in Indonesia, has a fixed broadband network with more than 3 million home passed, among which 2.4 million belong to the hybrid fiber-coaxial (HFC) network. During the network upgrade and transformation process, Link Net has two options to consider: one is to upgrade the existing HFC network using the Docsis technology, and the other is to build an FTTH network using the PON technology. After a thorough assessment, Link Net prefers PON that utilizes a passive optical fiber network over Docsis that involves active access, as PON has substantial cost savings in O&M. Moreover, considering the limited global applications and unclear future evolution path of the Docsis technology, Link Net has made a firm decision to use the PON technology for the construction of its fixed broadband network.
Throughout this process, Link Net has consistently selected ZTE as its partner to build FTTH networks and explore PON applications. After in-depth analysis of the fixed-line market in Indonesia, Link Net took the lead in commercializing the Any PON solution in 2021, which enables its network to support GPON access while satisfying the uplink/downlink symmetric 10G PON bandwidth needs of government and enterprise users, as well as the smooth evolution to 10G PON for home users in the future. As the scale of FTTH construction continues to expand, Link Net not only considers optimal solutions for active equipment but also places increasing emphasis on cost savings within the ODN segment. Traditional FTTH construction modes come with the following challenges:
Light PON Solution for Fast End-to-End FTTH Deployment
To address these challenges, Link Net made an extensive technical analysis and a business case study, and worked with ZTE to explore tailored solutions that cater to Link Net’s needs—the Light PON solution. This innovative modular network construction solution composes lightweight OLT, Light ODN, and cloud network management Zenic One. It can address the range of challenges that Link Net encounters when using traditional solutions, enabling Link Net to expedite FTTH deployment at a lower cost.
Promoting Large-Scale FTTH Development to Create Digital Future in Indonesia
At present, Link Net has built a FTTH network with over 3 million home passed, covering 27 cities across the country. The construction of all-optical broadband infrastructure has also provided Link Net with a higher competitive edge in the market, facilitating the growth of new services. By employing leading and innovative high-end products on a long term, Link Net has achieved a high ARPU of over IDR340,000 and a fixed broadband package bundling rate of more than 95%. By the end of 2022, its enterprise business revenue had grown by 16.4% year-over-year. In the future, it aims to become an infrastructure provider with the goal of 8 million FTTH home passed in the next five years, offering all-optical access network services to more enterprise and home users. After the FTTH network is delivered quickly on a large scale, Link Net will offer faster and more stable fixed broadband network connections for Indonesian fixed-line users, along with a wider range of innovative digital services, ensuring that every household can fully enjoy the convenience and opportunities of the digital era.