Jakarta, CNBC Indonesia – PT Telekomunikasi Indonesia Tbk (Telkom) revealed that he has not reached a commercial business agreement with Neflix, even though Telkom has unblocked the video on demand platform in IndoHome, Telkomsel and wifi.id.
Telkom’s Director of Wholesale & International Service Dian Rachmawan said that currently there has not been a commercial and technical agreement between Telkom and Netflix. One of the things that has not been agreed upon is direct peering or interconnection to distribute heavy video content traffic. In fact, Netflix’s HD video content is very greedy consuming bandwidth.
Netflix’s home country is different. In the United States it is known that since 2014 expensive Netflix has started paying peering to all major telecommunications operators and ISPs. Namely, Comcast, Time Warner Cable, Verizon, and AT&T after previously not reaching an agreement for nearly two years.
“If this condition is allowed, capital expenditures and operating expenses will only be used up to increase network capacity for the sake of Netflix. This is all we bear, while from Netflix there is no ‘sacrifice’ whatsoever, Netflix’s monopoly on bandwidth usage is currently very large and discriminatory,” said Dian Rachmawan, as quoted from detikINET, Monday (21/9/2020).
Dian Rachmawan added that Netflix should not only store servers in Singapore, but this high-resolution video content must be distributed to Telkom’s CDN network in Indonesia, meaning that Netflix must be interconnected (direct-peering) with Telkom’s CDN.
Although there is no commercial agreement that is balanced and fair for Telkom, this company will still give its customers the opportunity to enjoy Netflix. It is recommended for Indihome customers to increase their subscription bandwidth to at least 50mbps so that customers get the opportunity for a more stable service quality.
For information only, in July 2020, TelkomGroup decided to unblock Netflix after 4 years of video on demand service could not appear on its network, after Neflix fulfilled several requirements from Telkom, such as ensuring the availability of tools in the system to restrict access to sensitive shows and age mismatches for customer (parental control). Also Netflix is required to provide a mechanism for handling customer complaints.
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