Departemen Komunikasi dan Informatika OVERVIEW OF SPECTRUM ISSUES

Departemen Komunikasi dan Informatika OVERVIEW OF SPECTRUM ISSUES IN INDONESIA Presented by: Denny Setiawan Deputy Director of Spectrum Policy and Planning Directorate General of Post and Telecommunications Ministry of Communications and IT GSMA Spectrum Workshop Session 3: Regulatory Frameworks and government policy affects spectrum availability London, 29 th June 2010 DG POSTEL 03/11/2020 1

Departemen Komunikasi dan Informatika PRESENTATION 1. 2. 3. 4. OVERVIEW MOBILE COMMUNICATIONS AND FREQUENCY BANDS IMT-ADVANCED SPECTRUM AND PROBLEMS SPECTRUM PRICING AND LICENSING REFORM DG POSTEL 03/11/2020 2

Departemen Komunikasi dan Informatika SOUTHEAST ASIA AND INDONESIA IN BRIEF (Ref: Wikipedia) • South East Asia – – Area: 5, 000 km 2 Pops (2009): 593, 000 Density: 116. 5 people per km 2 GDP per capita (2009): US$ 2500 • Indonesia: S. E Asia countries consist of : Indonesia, Malaysia, Singapore, Phillipines, Thailand, Brunei, Vietnam, Myanmar, Laos, Cambodia, East Timor, Papua New Guinea 03/11/2020 – Area: 1, 919, 440 km 2 (land), 735, 355 sq. mi (sea) – Pops (2009): 229, 965, 000 – Density: 119, 9 people per km 2 – GDP per capita (2009): US$ 4156 DG POSTEL 3

Departemen Komunikasi dan Informatika 1. INDONESIAN TELECOMMUNICATIONS GROWTH Sumber: Business Monitor International Report 2 Q 2008 03/11/2020 DG POSTEL 4

Departemen Komunikasi dan Informatika INDONESIA ICT STATISTIC Fixed Wireline Number of subscribers 8. 8 Millions 3 Operators Fixed Wireless 21. 7 Millions 4 Operators Cellular 140. 5 Millions 8 Operator (5 GSM & 3 CDMA) Penetration 3. 81% 9. 53% 61. 72% Internet 2. 3 Millions 164 ISP, ± 25 Million. Users 10% Number of population: More than 237. 5 millions pops Data: Q 1 -2009 03/11/2020 DG POSTEL 5

Departemen Komunikasi dan Informatika 2. MOBILE SERVICES AND FREQUENCY BANDS • MOBILE OPERATORS IN INDONESIA (FDD / Paired Band) – BAND PLAN GSM-900/1800 – IMT-2000 (UMTS) BAND PLAN • MOBILE AND FWA OPERATORS IN INDONESIA (FDD / Paired Band) – BAND PLAN CDMA-850 • 2. 6 GHz BAND PLAN OPTIONS • DTTB & DIGITAL DIVIDEND IN UHF-BAND • DIGITAL DIVIDEND (700 MHz) BAND PLAN • IMT-ADVANCED SPECTRUM AND PROBLEMS 03/11/2020 DG POSTEL 6

Departemen Komunikasi dan Informatika MOBILE OPERATORS IN INDONESIA (FDD / Paired Band) Telkomsel Indosat XL Axiata Hutch CPT Axis 1995 1994 1996 2004 Number of subs (end of 2008) 65, 300, 000 36, 500, 000 26, 000 4, 501, 000 3, 000 Standard GSM/UMTS GSM/UMTS /HSPA /HSPA Frequency Band (MHz) 900/1800/ 2100 900/1800/ 2100 Bandwidth 40 MHz FDD 20 MHz FDD 15 MHz FDD 20 MHz FDD Starting of operation Notes: Reference: Number of subscribers: Annual report of operators year 2008, Ditjen Postel. 03/11/2020 DG POSTEL 7

Departemen Komunikasi dan Informatika BAND PLAN GSM-900/1800 03/11/2020 DG POSTEL 8

Departemen Komunikasi dan Informatika IMT-2000 (UMTS) BAND PLAN 03/11/2020 DG POSTEL 9

Departemen Komunikasi dan Informatika MOBILE AND FWA OPERATORS IN INDONESIA (FDD / Paired Band) SAMPOER NA TI MOBILE 8 BAKRIE TELECOM TELKOM FLEXI INDOSAT STARONE SMART Starting of operation 1985 1990 s 2002 2004 Number of subs (Y: 2008) N/A 3, 004, 400 7, 300, 000 12, 725, 000 761, 589 N/A CDMA CDMA Frequency Band (MHz) 450 850 850 1900 Bandwidth 3. 69 MHz FDD 4. 92 MHz FDD 4. 96 MHz FDD 2. 26 MHz FDD 6. 15 MHz FDD Standard Notes: • • • Bakrie Esia: 4 carrier 1. 23 MHz di West Java, DKI, Banten, Telkom: 4 carrier 1. 23 MHz exclude West Java, DKI, Banten Reference: Number of subscribers: Annual report of operators year 2008, Ditjen Postel. 03/11/2020 DG POSTEL 10

Departemen Komunikasi dan Informatika BAND PLAN CDMA-850 03/11/2020 DG POSTEL 11

Departemen Komunikasi dan Informatika OPERATOR BWA TDD 2. 6 GHz (Unpaired Band) & SATELIT BSS Starting of operation Licensed Area Number of subs (end of 2008) CSM ELANG MAHKOTA MNC SKVISION (INDOVISION) 2009 N. A 1996 Jakarta and some major cities in Java islands Nationwide N/A < 1, 000 Wimax BSS Satellite Frequency Band (MHz) 2500 - 2515 2675 - 2690 2520 – 2670 Bandwidth 15 MHz TDD 150 MHz (10 TXPDR @30 MHz) Standard 03/11/2020 DG POSTEL 12

Departemen Komunikasi dan Informatika 2. 6 GHz BAND PLAN OPTIONS Status Quo Option Rec ITU-R M. 1036 Band Segmentation Option 03/11/2020 DG POSTEL 13

Departemen Komunikasi dan Informatika DTTB & DIGITAL DIVIDEND IN UHF-BAND • Digital TV Terrestrial Broadcasting (DTTB) Planning – Fixed DTTB: DVB-T Standard (decided in 2007), Mobile TV: no mandatory standard. – Dealing with multi regulator environment (Telecommunication and Broadcasting authorities). – Must to accommodate different public policies and objectives (nationwide and local TVs, public, private and community broadcasting, etc). • Digital Dividend in UHF-band – 470 – 806 MHz is used for Analog TV Broadcasting (PAL standard). – 806 – 890 MHz is used for Radio Trunking and CDMA cellular / FWA services – Some potential technologies identified (Additional DTTBs, Mobile Broadband, PPDR, PSME, etc). – Special opportunity to have most valuable spectrum with larger bandwidth and coverage. DG POSTEL 03/11/2020 14

Departemen Komunikasi dan Informatika IDENTIFIED BANDS FOR IMT-ADVANCED (4 G) • In operation for Mobile Communication Services – 450 MHz / 850 MHz Band / 1900 MHz Band (3 GPP 2/CDMAbased) – 900 MHz Band / 1800 MHz / 2100 MHz Band (3 GPP/GSMbased) • Used by other services i. e. Satellite, Broadcasting Services, etc. – 700 MHz Band – 2500 MHz Band – 3600 MHz Band 03/11/2020 DG POSTEL 15

Departemen Komunikasi dan Informatika 3. IMT-ADVANCED SPECTRUM & PROBLEMS • For existing bands of Mobile Communication Services – Most of bands has no contigously large enough bandwidth available for 4 G services. – Most possible band used for IMT-Advanced (assuming 20 MHz bandwidth contiguously required for IMT) is the 1. 8 GHz band. However, it will need spectrum re-arrangement among operators. – Spectrum re-farming with existing services (HSPA, GSM, CDMA, etc). – Possible interference between different band plans (850 MHz and 900 MHz band plan, 1900 MHz and UMTS band plan). 03/11/2020 DG POSTEL 16

Departemen Komunikasi dan Informatika IMT-ADVANCED SPECTRUM & PROBLEMS (cont. . ) • 2. 5 / 2. 6 GHz band – Sharing IMT services with Broadcasting Satellite Services / Direct to Home Satellite is very difficult. – If band segmentation option is selected, how to maintain the services of significant number of BSS/DTH subscribers. • 3. 5 GHz band – Part of bands used by Pay-TV DTH services. – The band is used by several Indonesian satellites. • 700 MHz band / Digital Dividend – Migration Analog to Digital TV is not started yet. – How to negotiate with broadcasting industry to release analog TV spectrum in near future. 03/11/2020 DG POSTEL 17

Departemen Komunikasi dan Informatika 4. SPECTRUM LICENSING AND PRICING REFORM Before year 2005: • All major spectrum licensing were granted by first come first served basis. • Licenses issued based on lobbying from applicants. Sometime without proper planning. • No commitment and fees based on deployment of base stations. • Result: – Some of licensees did not roll out the networks, but rather waiting for “new investors. . . (using spectrum as its valuable asset) – Overlapping band plans of PCS-1900 and UMTS in 1900 MHz band, and 850 MHz/900 MHz between GSM and CDMA. 03/11/2020 DG POSTEL 18

Departemen Komunikasi dan Informatika SPECTRUM LICENSING AND PRICING REFORM Since year 2005: • Introduction of auction of the method of spectrum licensing (Most fair, transparant, independent) • Success with mobile spectrum licensing. • Difficult to convince the broadcasting authorities to conduct the auctions. • Method of spectrum auction was relatively simple (2 nd round sealed bid auction), need to be improved. • Result: – 3 G network roll out has been implemented very rapidly. 03/11/2020 DG POSTEL 19

Departemen Komunikasi dan Informatika SPECTRUM LICENSING AND PRICING REFORM Current and future projects : • Converting existing spectrum license of mobile operators from apparatus license-based to become bandwidth license. It will significantly reduce the complexity of the licensing process. • Consultation with industry to introduce cost-recovery based spectrum pricing method as well as taking into account spectrum value. • Improvement of spectrum auction methods. • Challenges: Need to negotiate and convince the Ministry of Finance and Parliaments that the Government Income from spectrum license fees should not be targeted each year increasingly, and should reflect the cost-recovery of spectrum management process. 03/11/2020 DG POSTEL 20

Departemen Komunikasi dan Informatika CLOSING REMARKS • Most of identified spectrum for IMT-Advanced / 4 G are heavily used by existing services. • DG Postel would like to invite proposals, ideas, expertises of spectrum refarming strategy and issues to facilitate the implementation of the IMT-Advanced / 4 G in Indonesia, taking into account the concerns of relevant parties. 03/11/2020 DG POSTEL 21

Departemen Komunikasi dan Informatika Q & A: denny@Postel. go. id Ferry_a_wibowo@postel. go. id 03/11/2020 DG POSTEL 22