TUGAS BAHASA INGGRIS TEKNIK

“THE INTERNET IN THE FUTURE”

Nama : Fatih Muflih

NRP : 3123510603
Kelas : 1 ITA D3PJJ

PROGRAM STUDI TEKNIK INFORMATIKA

POLITEKNIK ELEKTRONIKA NEGERI SURABAYA
2023
 THE INTERNET IN THE FUTURE

The Internet and its digital ecosystem have brought about a miraculous technological transformation in
the 21st century, both globally and in Southeast Asia. Expanding access to all is crucial for the ongoing
development and progress of modern society given the Internet’s pervasive and influential presence in
our daily lives.
Rapid technological growth has made the Internet one of the world’s most valuable tools, especially in
Southeast Asia, which leads the world in mobile Internet use. For example, people in Indonesia,
Malaysia, the Philippines, and Thailand spend more than four hours a day using mobile Internet—
exceeding the global average of three hours.1 In 2022, more than 460 million people in Southeast Asia
used the Internet, with a penetration rate of 80 percent, according to ASEAN.org. Looking ahead, the
Southeast Asia and Oceania region could see 29 percent more data traffic per smartphone per month
(see figure 1). And over the past few years, Southeast Asia has become much more resilient, with the
region’s economy more robust and diversified than ever. Bridging the gap between China and the United
States has also created new opportunities for trade and investment.

The importance of the Internet as a driving force behind Southeast Asia’s economic growth and
development cannot be overstated. The digital economy is growing rapidly at a rate of 17 percent,
outpacing the United States (7 percent), Europe (10 percent), and China (13 percent).2 Indonesia, for
example, has the highest digital economic value in Southeast Asia, with two decacorns (GoTo and J&
T Express) and nine unicorns, including Traveloka and Ovo. And the e-payment industry is poised for
rapid growth, with transaction values expected to reach somewhere between $600 billion and $1 trillion
by 2030.3 These trends present major opportunities for businesses and governments to develop and
enhance their digital infrastructure and payment systems to keep up with the region’s growing demand
for e-commerce and e-payments.
Furthermore, technology-leading Southeast Asian countries such as Singapore are seeing more use
cases for advanced technologies, such as virtual reality, artificial intelligence, and autonomous vehicles,
which are becoming crucial elements of the Internet and over-the-top services (OTT). In fact, the
Internet of the future will serve a non-human market, with applications in areas such as the Internet of
Things, smart cities, smart homes, connected vehicles, and wearables. Capturing sustainable business
growth will require focusing on these markets.

But the Internet revolution comes with challenges

This transformation does bring challenges in terms of access and affordability as well as the penetration
of fast Internet. Despite the progress made so far, about 20 percent of Southeast Asians still don’t have
access.4 Furthermore, accessibility to fixed broadband is uneven across the region. (Indonesia’s fixed
broadband penetration was as low as 18 percent in 2022, and Singapore’s was more than 110 percent.5)
The region is also generally behind other developed regions (Indonesia at 18 percent and the Philippines
at 34 percent compared with the United States’ 100 percent and South Korea’s 115 percent).6 But on
the positive side, Southeast Asia has a higher percentage of fibre for fixed broadband (Indonesia at 77
percent and the Philippines at 70 percent compared with only 21 percent for the United States and 88
percent in South Korea).7
Likewise, Southeast Asia’s 5G penetration rate is still below developed countries at about 4 or 5 percent,
with only Singapore and Thailand having high rates at 23 and 21 percent respectively, compared with
developed countries’ 13 percent in 2022.8 One of the main reasons is that spectrum availability is a
constraint in many Southeast Asia countries, with most having less mobile spectrum than developed
nations such as Japan and the United States. In the overall low- and mid-band spectrum, Indonesia,
Singapore, and Malaysia have 452 MHz, 825 MHz, and 840 MHz respectively, lagging Japan and the
United States, which have more than 1,300 MHz.9 The lower amount of mid-band spectrum available
in many Southeast Asia countries is attributed to the extensive use of the 3.5 GHz band for satellite
connectivity in the region because of the favourable propagation characteristics of the band.
Another challenge is the affordability gap for Internet services. Fixed broadband prices in Indonesia,
the Philippines, Thailand, Vietnam, and Malaysia do not meet the affordability target of 2 percent of per
capita income set by ITU/UNESCO in 2021 (see figure 2). In fact, according to ITU, the price of 1GB
of data in Asia Pacific was higher in 2022 than it was in 2021. This disparity creates inequality and
hinders the benefits of digital economies.
In addition, the challenge of sustainability has been exacerbated by the advent of 5G, which makes
extensive use of power-intensive technologies such as massive MIMO. The ecological toll of Internet
use is growing. In fact, the information and communication technology (ICT) sector accounts for 2 to
3 percent of global power consumption, and the amount of electronic waste reached 54 million metric
tons in 2019—an increase of 44 million metric tons in only five years, of which around 7 percent comes
from Southeast Asia.10
Finally, geopolitical dynamics are creating a risk of bifurcation that could split the Internet in China and
the West into separate, incompatible networks or infrastructure based on different standards, protocols,
or governance models. If this happens, Southeast Asia—at the crossroads between China and the
West—would be particularly impacted. As these issues persist, the likelihood of a divided Internet
grows, which could create challenges for businesses and individuals who rely on a globally accessible
Internet and could slow down innovation, making it difficult to achieve interoperability and
interconnectivity between different parts of the Internet.

The Internet ecosystem is evolving from ISP-centric to multiple players with

shared responsibilities
Traditionally, local Internet service provider (ISPs) have been at the centre of the Internet, managing
resources, providing access, and supporting a localized ecosystem.11 They have been responsible for
managing scarce resources, including spectrum. Access is uneven, and local ISPs have been given a
universal service mandate to maximize access. They have also been supporting national ICT and digital
agendas and building in tech capabilities to counter the incumbency and scale advantages of large tech
players from western countries. Most of this was fuelled by ISPs’ profitability and margins.
However, this changed as ISPs saw their returns decline. From 2017 to 2022, Southeast Asia’s
telecommunication sector experienced declining growth of -2 percent compared with average GDP
growth of 3.5 percent per year for the same period (see figure 3).

At the same time, costs rose faster than revenue, which chipped away at returns on investments. As a
result, ISPs’ ability to make investments has been constrained—threatening the Internet development
in Southeast Asia and around the world. This means the Internet will no longer be an ISP-centric
endeavour but a responsibility that must be shared by all actors in the Internet ecosystem: regulators,
original equipment manufacturers (OEMs), ISPs, and hyperscale cloud and content service providers.

The thought leaders we spoke with also see resiliency and privacy as top priorities. The Internet should
be reliable, safe, private, and secure, especially considering the escalating risks of cybersecurity
breaches.
Fairness to all is seen as crucial to maintaining the Internet ecosystem. For the Internet to thrive in the
long term, the benefits should be equitably distributed across all parties, and companies that make
capital-intensive investments should see a return on their investments. And, of course, sustainability is
a fundamental principle. The region must integrate environmental principles into the implementation
and operation of the Internet, such as reducing electronic waste via a circular economy and promoting
measures to achieve net-zero greenhouse gas emissions by reducing energy consumption and using
renewable sources.
Making this vision a reality will require first getting the basics right. Most of the thought leaders we
spoke with see the cost of infrastructure (5G sites, fibre, and data centres) as the most fundamental
challenge. Ultimately, deploying this infrastructure will hinge on having a compelling business case,
and cost is an important factor.
Leaders also say it’s important to ensure that regulations don’t constrain operational and business
models or create higher rollout costs. Limited public resources such as spectrum should be made
available to ISPs, and telcos will need to collaborate in a new environment with open standards.
Another obstacle that many leaders cite is legacy infrastructure and the difficulty of moving out because
of write-offs and, more importantly, inertia from customers who are reluctant to switch over their
services. Legacy infrastructure not only increases costs and makes the environment more complex; it
also keeps obsolete energy-intensive infrastructure that serves only a small number of people. Other
relevant factors that leaders pointed to include a lack of available talent and a lack of confidence on the
business cases for new technologies.
Seven technology trends will shape the Internet in Southeast Asia
These trends will change the types of services that are delivered to end users, making them more real-
time, immersive, and interactive. Our study reveals that seven technology trends are fundamental if the
region hopes to make its Internet vision a reality in the next five years.

Cloud evolution and edge

The most relevant trend, according to the thought leaders we spoke with, is cloud computing’s evolution
to the edge and multi-cloud. Cloud computing is seeing an emergence of use cases in areas such as
autonomous vehicles, telehealth, artificial intelligence, and virtual reality, and as a result, cloud is
shifting to the edge, pulled by data gravity and the need for lower latency as well as a growing need for
data localization and residency. This will require expanding the capacity of local data centres in non-
hub countries such as Malaysia, Indonesia, and the Philippines, along with creating more small data
centres in regional cities and ultimately rolling out multi-access edge computing (MEC). And as the
cloud becomes more pervasive, more companies will want to use multiple cloud computing services
from different providers.

Network softwarization
The cloud is even extending into the heart of the Internet—the telecommunications network
infrastructure—as networks become software running on a hybrid cloud. This trend, which has gained
traction around the world over the past five years, will soon become more widespread in Southeast Asia.
In fact, it has already started in centralized functions at the core of the network (5G network cores are
cloud-native today), and it is expanding through the edge with new technology paradigms such as Open
RAN. This transition from hardware to cloud-native software helps ISPs become less capex-intensive
to alleviate their investment constraints and introduce agile ways of working that reduce the time to
market and offer more innovative services. Another advantage of the “softwarization” of the Internet is
that it enables automation and the injection of AI. In the future, AI will become a more prevalent part
of the Internet, not only for operations and marketing insights, but also for routing and switching data
as the next step to software-defined networks. In the future, the networks that underpin the Internet will
evolve from cloud-native to AI-native.

Sustainability
Sustainability has moved to the top of the C-suite agenda for OEMs, ISPs, and hyperscalers in Southeast
Asia and around the world. For example, OEMs are manufacturing mobile infrastructure equipment
with energy-saving features that offset the increase in consumption resulting from 5G. Green energy
will become available to operators thanks to the vision of a pan-ASEAN power grid, for which the Lao
PDRThailand–Malaysia–Singapore Power Integration Project (LTMS–PIP) is the first step. Other
countries also have long-term plans for renewable energy, such as Indonesia’s solar initiatives and
Vietnam’s efforts in wind and solar energy. Meanwhile, AI can help reduce energy consumption in data
centres and telecom networks by optimizing heating, ventilation, and air conditioning (HVAC) and
efficiently allocating resources on ISP and IT equipment by predicting load patterns. There is also a
growing focus on developing more sustainable supply chains and creating a circular economy by
reducing, reusing, and recycling electronic waste. Although sustainability is seen as essential, most of
these trends could take three to five years to gain traction.

API exposure
The Internet of the future will also serve non-humans, and it’s about much more than connectivity.
Furthermore, ISPs are undergoing through a process of “platformization”, evolving from traditional
connectivity providers that offer a data pipe into platform business models that offer telecommunication
APIs. This is achieved by implementing platforms that expose network functionality APIs to devices
and third-party applications created by communities of developers who enrich the basic network
functionality. This year has brought pivotal progress on this front thanks to the launch of the GSMA
Open Gateway initiative.

Network slicing
5G standalone—the full version of 5G—comes with one transformational innovation: network slicing.
Network slicing is the ability to offer differentiated connectivity services with dedicated network
resources: the slice. These services can be tailored to the specific needs of third-party applications that
can selectively access and control the services or to specific customers who want a dedicated virtual 5G
network. In addition, 5G and softwarization are boosting the emergence of private networks, where
infrastructure can be more effectively scaled. These dedicated networks open the possibility for ISPs to
escape commoditization, offer innovative new B2B2X business models, and foster innovation. We
expect this trend to gain traction in Southeast Asia over the next two to four years.

NTN convergence
Non-terrestrial network (NTN) convergence is especially relevant for Southeast Asia, with its large
rural, sparsely populated areas where mobile coverage is not economical. NTN convergence aims to
integrate various NTNs (satellite) with mobile networks to provide seamless communication services.
The 3rd Generation Partnership Project (3GPP), the standards body for mobile networks, has defined
spectrum bands for satellite, and manufacturers such as Qualcomm are making chipsets that support
NTN. This NTN convergence can help provide ubiquitous mobile coverage with no need for large
investments along with a fallback from the mobile network for emergency services, ensuring continuity
in the event of disruptions such as natural disasters or network outages. MWC 2023 gave the NTN
convergence a big push.

Management of bifurcation
The risk of bifurcation will need to be managed by using open technologies and digital commons to
promote a shared, collaborative approach to developing and using internet and digital infrastructure.
Adopting open standards, using open-source software and blockchain technology, promoting
decentralized communication protocols, and encouraging the use of digital commons can all help
promote a collaborative approach to developing and using Internet and digital infrastructure, reinforcing
interoperability between the various parts of the Internet, and mitigating the impact of the potential
bifurcation split.
All of the above doesn’t mean ISPs should limit their focus to these trends. Forward-thinking providers
will need to pay close attention to a variety of technology trends—from elevating network security for
the quantum computing era to delayering stacks to capture more value.

Achieve the vision by embracing the top seven trends

To make the Internet vision a reality for Southeast Asia, stakeholders will need to take a variety of
actions. Below, we shed light on what OEMs, ISPs, hyperscalers, and regulators can do to help move
the region forward in each of the top seven technology trends.

Cloud computing evolution to edge

Regulators and governments across Southeast Asia will need to focus on data protection, especially in
the areas of privacy and security, and collaborate on adequacy-based interoperable frameworks that
allow personally identifiable information (PII) to flow between countries that have comparable
regulations, along with creating flexibility in data sovereignty to allow a workload mobility computing
service that is standard and ubiquitous and provides the functional richness and developer experience
of the traditional cloud. Hyperscalers and their data centre infrastructure providers, particularly in
emerging countries across the region, should prepare for an increase in computing capacity, driven by
the Internet’s shift to the edge, as well as the additional computing needs created by AI and natural
language processing technologies.

Network softwarization
Operators will need to keep the momentum going on network softwarization, gradually evolving from
hardware to software infrastructure. For this to be successful, a talent pipeline will need to be scaled.
ISPs will have to reskill their workforce or work with governments and universities to create talent
development programmes. Regulators should facilitate the technology adoption by making the
necessary provisions in data protection regulations and critical infrastructure policies that allow for
these evolutions. Policies should look more closely at network security and factor in the new cloud-
native infrastructure resilience paradigms.

Sustainability
Southeast Asia’s ISPs and hyperscalers should boost their use of renewable sources and benefit from
power greenification initiatives such as the LTMS–PIP and large renewable initiatives available in their
own countries, such as in Indonesia and Vietnam. Incentives for solar power on cell sites from
governments will also help. ISPs and hyperscalers should also collaborate with tech OEMs to reduce
their equipment power consumption and scope 3 emissions. One fundamental action is to phase out
legacy energy-inefficient technologies that have a big impact in power consumption and benefit from
modern technologies with power-saving features in the network and the data centre. Finally, regulators
and governments should establish policies for managing e-waste to support the circularity of device and
infrastructure equipment.

API exposure
To move to a platform business model based on API exposure, ISPs can work together to create,
promote, and adopt open telecommunication APIs in the region. This can be achieved through initiatives
such as the GSMA Open Gateway, in addition to creating Southeast Asia-specific APIs and seeding a
regional community of developers. Regulators should also have simple, light-touch policies on
telecommunication APIs to avoid stifling innovation and constraining the emergence of a local
developer community. Hyperscalers should facilitate ISPs to integrate their products with their
networks. Standardization and open interfaces will help.

Network slicing
Vendors, content providers, and hyperscalers should work together with ISPs as part of the slicing
ecosystem through partnerships, innovation hubs, and other initiatives to push for specific use cases
relevant to the region.

NTN convergence
NTN convergence will require spectrum regulation coordination between satellite and mobile.
Regulators should also modify the universal service regulations to include NTNs. Mobile and satellite
operators should get more involved in NTN convergence for the region. Network and device OEMs
should also promote the affordability of chipsets through flexible systems on chips (SoCs) that tap into
economies of scale to be more accessible for people across Southeast Asia.

Management of bifurcation
Finally, managing bifurcation and potential stack splits in Southeast Asia requires ISPs to collaborate
with one another and devise scenarios and risk plans with roadmaps that embrace open technologies to
bridge any technology gaps. Government bodies and regulators should establish policies that promote
flexibility and adaptability among ISPs, mitigating the risk of split Internet standards and governance.
Forward-thinking OEMs should consider promoting open technologies beyond Internet standards to
ease the impact of standard fragmentation and to maintain interoperability.

A call to action
The transformation of the Internet in Southeast Asia is at a crucial juncture. The region will need to
bridge the digital divide with a trustworthy and inclusive Internet for everyone and seize the opportunity
to leapfrog to the next step-change in the evolution of the Internet to continue growing competitively.
Although technology trends such as edge cloud, software-centric networks, API exposure, NTN
convergence, 5G slicing, and more sustainable connectivity are still nascent in the region, they hold a
wealth of potential to empower all actors in the Internet ecosystem—regulators, OEMs, ISPs, and OTT
hyperscalers—to realize the vision of a more accessible, affordable, sustainable, reliable, and secure
Internet from with every party takes a fair benefit.
Embracing the emerging technologies is part of a long-term road map, but it is important to act now
with close collaboration between all stakeholders to achieve the common vision. This means that all
actors will need to own the actions that we have described and plan for the best ways to execute them.
In summary, making the vision of an Internet for Southeast Asia a reality will require concerted effort
from every actor across the ecosystem. By working together and taking action now, Southeast Asia can
move with surefootedness toward a powerful future of the Internet—one that is a driving force for the
region’s socioeconomic development.