Business Sustainability Model for Telecommunications Infrastructure in Rural Area.

Developments in national information and communication technology (ICT) are always interesting to follow. Based on research and studies so far, ICT development is closely related to the level of the national economy and productivity. This is also the basis for the Indonesian government to actively increase ICT infrastructure development in the 3T areas (Frontier, Outermost, and Disadvantages areas; directly translated from Bahasa Indonesia: Terdepan, Terluar, Tertinggal). BAKTI was appointed as the agency responsible for building and operating ICT infrastructure in the rural area. However, BAKTI itself has experienced various difficulties in building ICT infrastructure in 3T. The lack of appropriate core competencies, the high need for development funds, the limited quality of internet services that can be provided, and the lack of clarity in preparing entry and exit strategies and scenarios mean that BAKTI programs often do not achieve their initial targets and fulfill their initial development intentions. Therefore, new development strategies and modeling are needed to address these challenges while complying with and meeting global standards for providing internet access in rural areas. Using Porter’s Five Forces model and SWOT analysis, situations analysis was then carried out. The results of this analysis are then used to develop a TOWS matrix so that strategies can be developed that are relevant to the existing situation analysis. The results of this strategy emphasize the use of new technology which emphasizes cost efficiency, collaboration with the private sector, emphasizing a clear exit strategy, and optimizing the use of existing infrastructure. The usage of Fixed Wireless Access (FWA) is chosen for the proposed model in this study. A comparative analysis is then carried out by estimating the effectiveness and cost efficiency of the newly developed model and the existing model. A QSPM analysis was also carried out to answer the initial challenges by including all consideration factors, including cost-effectiveness and efficiency. The new model provides a higher score than the existing model, with a score of 4.65 versus 3.4. [ABSTRACT FROM AUTHOR]