SPECTRUM MANAGEMENT IN INDONESIA

Heru Sutadi

2

A. Introduction

B. Spectrum Radio Frequency Management

C. Policy Planning and Progress Report

D. Spectrum Licensing and Usage

E. Problems

F. Prospect and Future Challenges

OVERVIEW

A. INTRODUCTION

4

SPECTRUM RESOURCES S-R as limited natural

resources• Each individual or

institutions has a right in using S-R comply with the requirement

• In specific S-R band, could be used as a valueable economic by the operator such as cellular, TV, radio broadcasting and satellite

B. SPECTRUM RADIO FREQUENCY

MANAGEMENT

6

SPECTRUM RESOURCESMANAGEMENT PRINCIPLES• S-R management is based on

comprehensive, systematic and solid regulation

• Internationally implemented• Developed in the supra-national regulation • Accomodate future need • Public welfare oriented, based on national

need and technology development adoption

7

S-R MANAGE AS A LIMITED RESOURCES S-R as a limited resources should be managed

effectively and efficiently, through: A. S-R usage dynamic and adaptive plan with

public need and technology developmentB. S-R managed systematically and be supported

by S-R informations system that accurate and up to date

C. Control and supervison on the consistency and effectively S-R usage

D. Regulation anticipation and a certainty in law E. Strong S-R institution supported by

professional human resources and appropriate S-R information system

8

S-R MANAGEMENT FRAMEWORK• Radio regulations elaborated to national

master plan in several radio communictaion services

• S-R regulated and allocated by DGPT :– Radio and television broadcasting– Cellular (CDMA, GSM/DCS, 3G)– Radio Trunking– Broadband Wireless Acces and Internet Access– Satellite (C-Band, Extended C-Band, S-Band, L-

Band, Ku-Band)– Microwave Link– National defence and navigation – Standardized radio and frequency plan

9Radio Frequency Monitoring System

Fixed Monitoring Station LF-HF

Merauke

Kupang

Samarinda

Medan

Cangkudu

C. POLICY PLANNING AND

PROGRESS REPORT

11

S-R REGULATION STATUS

3G Frequency management (IMT-2000) FWA and Cellular 800 MHz IMT-2000 (1.9/2.1 GHz)

Broadband Wireless Access frequency management BWA 2.3 GHz BWA other than 2.3 GHz

Broadcasting frequency Management Analog: Radio (AM/FM) and television broadcasting Digitallization

National defence frequency management Satellite licensing regulation

3G Licensing Process (1)

2003 CAC Was Given 3G License through tender

2004 NTS received 3G frequency through evaluation

Jan 2005 Government plan to re-arrangement of 1.9/ 2.1 GHz, to avoid non- efficiency and follow ITU-R M1036-2, through Public Consultation

July 2005 Workshop re-arrangement of 1.9 / 2.1 GHz and to conduct 3G selection

July – August 2005

A list of questionnaires put in web, 78 responders received

3G Licensing Process (2)End of August 2005

Jan 2006 – Feb 2006

7-8 Feb 2006

Government announcement on the policy of

re – arrangement and the selection of 3G Operators

- Selection through pre-qualification and auction- 3 blocks of 2x5 MHz will be auctioned to all mobile and FWA- Auctions by two rounds with sealed envelope- Basic reserved price being Rp 100 billions per block

RESULTS : 7 operators registered 5 submitted the pre-qualification bid 5 bid for first round and second round selection

The Winner :

TELKOMSEL bid for Rp 212 billions;

EXCELCOMINDO for Rp 188 Billions; And

INDOSAT bid for Rp 160 Billions**CAC and NTS agreed to pay the lowest bid.

Consequences : Up front fee paid = twice the bidAnnual fee = as the lowest bid= paid progressively 20%, 40%,60%,80%,100%,130%..130%Amount proceed for Government from the three operators : Already paid (2006 )the sum of Rp 1322 billionsFor the license year - 10 Years Rp 6032 billion

2nd and 3rd Carrier for 3GMost subcribers get the broadband from the mobile

The subcribers increase drasticallyI-Phone and Blackberry push the traffic of broadbandUsers habit, always connected to the social networking

siteFacebook fenomenaBlackberry user increase 454% on 2007-2008, 366 % the

year before

Operator feels that the 5Mhz is not enough to give good quality 3G services, so operator ask for another 5 MHz, and regulator offer to the all operator for up front fee and annual fee with the lowest bid in 2006

Only 2 (two) operator agree with regulator offering and already allocated for the 2nd carrier in mid September 2009

XL Axiata Got another 5 MHz on 2010

NTS and HCPT are asking for 2nd carrier, Telkomsel and XL Axiata are asking for 3rd carrier

BWA Licensing Process (1)

Feb 2006 Government plan to make BWA policy

25 April 2006 Workshop on BWA with speakers from Regulator, major player, industry ASSI, APJII, ATSI, Vendor, Chip manufactures

26 April –

25 May 2006Questionnaires are put in Web for public responds

28 responses received

July 2006 Draft Policy on BWA will be put in the Web

August 2006 Government plan to announce BWA-WiMAX- Policy

BWA Licensing Process (2)January 2009 Established Policy and Regulation of Broadband

Wireless Access

July 2009 Spectrum Auction for BWA in 2,3 GHz for 15 Zones, each zone consist of 2 x 15 MHz

Three round ascending simultaneous bid in e- auction. 8 operator be winner for all zones with total price is around USD 46 Million (up front fee)

SPECTRUM FEE

For IMT-2000 2.1 GHz and BWA 2.3 GHz based on auction result, other based on TRx based

Regarding Ministerial Decree No. 17/2005, existing assigned frequency band must be adjust from TRx based to bandwidth based starting December 2010 for simplification spectrum fee administrative and calculation

Fixed Wireless Access with Limited Mobility following unified access licensing will be changed to full mobility

D. LISENCING AND USAGE

19

LICENSING PROCEDURES

1. S-R USAGE–Based on radio station–Bandwidth

2. License coverage3. Condition4. PROSEDURE5. LICENSING MECHANISM6. UTILIZATION RIGHT FEE7. S-R USAGE DATA

20RADIO STATION LICENSE – DGPT DATA BASE RADIO STATION LICENSE – DGPT DATA BASE

No. Jenis Layanan (Service) Persen1 Broadcast 0.924%2 Land Mobile (private) 24.190%3 Land Mobile (public) 22.250%4 Satellite 0.384%5 Fixed Service 52.249%6 Maritime 0.002%7 Aeronautical 0.001%

100.000%TOTAL

21

E. PROBLEM

22

SOME ISSUES

REGIONAL ISSUE : S-R license is taking over and issueing by local government with Governor/Local Parliament regulation to get local income. Therefore, there are several national inconsistency in using S-R, some collision and interferences.

MANAGEMENT INSTITUTION ISSUE• DG has not have enough expert to handle and prepare

regulation, to manage S-R following technology develepoment and facing with more S-R need and more complex problems

• Limited Human Resources compare with Indonesian population and geographical area must be handled

23

F. PROSPECT AND FUTURE CHALLANGES

24

PROSPECT AND FUTURE CHALLENGES1. Creating S-R policy to realize Indonesian welfare

2. S-R should BE managed by a strong institution, comprehensive, systemathic and profesional Human Resources

3. Accomodating future need and technology trend

4. Strengthening and harmonizing all S-R policy and regulation between the agencies following their own responsibility and duty

Thank you for your attention…

Heru SutadiEmail: herusutadi@hotmail.com

Twitter: @herusutadiWebsite: www.herusutadi.com