The Problem of Exclusive Arrangements in Multiple Dwelling Units: Unlocking Broadband Growth in Indonesia and the Global South

Abstract

One key area that continues to be problematic for entrepreneurial businesses that wish to serve the broadband market is the question of ensuring competition in multiple-dwelling units (MDUs) and private developments managed by a single landlord or entity. As is the case in Indonesia, many MDUs around the world enter into exclusive arrangements with a single Internet Service Provider, leaving consumers with no practical alternative for high-speed broadband connections. Our paper examines this phenomenon and addresses 10 myths that we have observed in the marketplace on the topic. We also look at how this area has been addressed by authorities in other countries, concluding with five specific recommendations for ways in which business, regulators, and consumers can work to improve local competition on a global scale.

Keywords: broadband, multiple dwelling units, internet, wireless, Indonesia, competition

JEL Classification: K23, L51, R52, L96