APT

1
APT ICT Development Forum
Telcommunication Infrastructure for High Rate
Data Communication by Syahrial Syarif Manager
of Cellular FWA Regulation PT Indosat,
Indonesia
GOA, 19th July 2005
2
Telecommunication Regulation in Indonesia (1)

• Position and Role of Telecommunication Services
  in Indonesia
• Important and Strategic
• To support and stimulate economy activities.
• To stable defense and security
• To educate people.
• To smooth away government activities.
• To strengthen people unity
• Technology development and global effect
• A Change in Telecommunication Paradigm
• Important/Strategic and Trade Commodity
• (Dual Role Of Telecommunications)

3
Telecommunication Regulation in Indonesia (2)

• A Change needs
• Improvement of Teledensity, Accessibility and
  Kind of Services.
• To invite people (private sectors) to prepare
  themselves in facing global market.
• To anticipate the Information and Communication
  Technology (ICT) development.

• Development Continuity (high teledensity and
  national distributed)
• Re-conduct Services Implementation i.e.
  Create fair competition atmosphere
• Supporting strong and professional operator in
  facing gloal market

Government
People
Operator

• Wide Coverage
• High Quality
• Reachable Tariff
• Kinds of Services
• Multi Operators

• Profit Sustainable Growth
• Stake Holder Values
• Supporting USO

4
Competition Policy in Indonesia
Segment
Structure
Operating entity
Interactive multimedia
Open
Competition
SERVICES
Multimedia
P
Internet
Open
Competition
U
T
B
Duopoly
Telkom Indosat
International
E
L
L
Duopoly
Telkom Indosat
DLD
I
E
Fixed
Wire line
Duopoly
Telkom Indosat
C
C
Local

Telkom Indosat
Wireless
Duopoly
O
N
M
Open
Value added services
Competition
SERVICES
E
M
T
Open but limited to spectrum availability
GMPCS
Competition
U
W
N
Competition
Open but limited to spectrum availability
Cellular
Mobile
O
I
Competition
Open
Trunking
R
C
K
A
Competition
Open
Paging
S
T
Open but limited to spectrum availability
Satellite transponder resale
Competition
I
Open
Broadcasting
Competition
O
N
Private
Unregulated, except for the frequency usage for
private sector
SPECIAL
S
NETWORKS
No competition
Government
Government
Military
Department of Defense
No competition
Non switching
EQUIPMENT
Competition
Open
Switching
Source Blue Print of Indoneisan
Telecommunication (Ministrial Decree No. 72 year
1999)
5
Competition Benefits

• Benefits for People
• Many operator choices
• Improvement of Service Quality
• Attractive Tariff
• Many kinds of Services
• Wide Coverage
• Wide information accessibility
• New Job opportunity (direct and indirect)

6
Problems

• Population gt220 million
• 80 at Village/Rural Area
• Change of telecommunication paradigm is followed
  by value changed of investment
• - Investment in last mile wire line is not
  interested
• Large capital
• Long-term pay back period
• Long-term market penetration
• Small ROI
• Uninterested as its inflexible service
• Investment in last mile wireless is more
  interested
• Large capital
• Speed payback period
• Speed market penetration
• Large ROI
• Mobile service is popular service
• Large potential market
• Teledensity (penetration per 100 citizens)
• Teledensity in downtown relatively higher gt11 (
  metropolis area gt25)
• Village

7
Current Condition

• Availability of telecommunication Infrastructure
• relatively low
• Fixed Telephone 10 million (5 of
  population)
• 33 million cellular user (16 penetration)
• 13 million internet user (dial up, corporate
  user and Internet Cafe users)
• Expensive cost access (Pulse and access)
• Expensive VSAT Access
• Mobile Internet Connection
• Limited and expensive broadband accessibility
• Limited and expensive International Bandwidth
• Less Backbone infrastructure to connect network
  and computer terminals

8
National Telecommunication Infrastructure

• Conventional Phone Line
• Hybrid Fibre-Coax (HFC) Jakarta and
  surrounding, Bandung, dan Yogyakarta Province
• Wireless Access in many cities
• ADSL Jakarta, Surabaya and some other cities
• Hotspot spots in many places (WiFi)
• Mobile Access delivered by some mobile
  operators
• Internet cafes everywhere

9
Media Program and Access

• Provide Higher Data Rate
• Infrastructure availability and Internet Access
• 2.4 GHz stated as unlicensed Band Spectrum
  (supporting internet connection and WiFi
  connection)
• IIX (Indonesian Internet Exchange), that was
  managed by Indonesian Private Internet Service
  Provider, effective and efficient internet
  traffic, supporting local content provider
  accessibility
• Palapa Ring Plan Project supports National
  Telecommunication Backbone (Optical Fibre Plan to
  connect all Indonesian islands)
• Broadband Wireless Access (2.5 3.3 3.5 5.8
  and 10) GHz
• High Rate Mobile Data (CDMA 2000 1X 3G Network)

10
PALAPA RING NETWORK PLAN 30 Province, 420
Regents
11
Indonesias CDMA2000 1X Networks in the PCS band

• Presently working (Incumbent) CDMA2000 1X
  networks in Indonesia in the PCS band
• Indosat (StarOne)
• 1880-1885MHz uplink
• 1960-1965MHz downlink
• Around 60,000 subscribers
• Telkom (Flexi)
• 1885-1890MHz uplink
• 1965-1970MHz downlink
• Aroud 3 million subscribers
• Two more companies (WIN and Primasel) also have
  PCS band allotments (in 1890 to 1910 1970 to
  1990 MHz spectrum)
• Has not been commercial yet

12
DCS-PCS-UMTS Spectrum allocations around 1800 to
2000 MHz
DCS downlink spectrum
UMTS uplink spectrum
PCS up/downlink spectrum
PCS up/downlink spectrum allocations in Indonesia
13
Existing 3G Sub-Band Frequency Allocations in
Indonesia

• In deploying FWA network, Indosat (StarOne) and
  Telkom (Flexi) have already got 5 MHz frequency
  band. The U/L and D/L Spectrum Allocations are
  based on US.PC S International Standard.
• 10 MHz frequency band has already allocated for
  Excelcomindo to provide 3G TDD (unpaired
  spectrum) services
• CAC has already got 15 MHz FDD frequency band
  (paired spectrum for both U/L and D/L) and 5 Mhz
  TDD frequency band. In Other side, 10 MHz CACs
  frequency band in 1800 GSM band frequency,
  potentially interfere StarOnes U/L frequency
• Lippo Telecom has already got 10 MHz FDD
  frequency band

3G/UMTS/IMT2000
GSM 1800
DECT
U/L FWA
D/L FWA
3G SAT
3G TDD
3G SAT
3G TDD
3G D/L
U/L
D/L
3G U/L
1710
1785
1805
2110
2135
2015
1775
1880
1890
1960
2170
1970
1980
1900
1945
1920
1870
1895
1910
1935
1975
2125
2010
2025
2200
1965
1990
1885
Telkom Flexi
Telkom Flexi
CAC-3G
Lippo-3G
Empty
Indosat Starone
Primasel
WIN
Primasel
CAC-3G
Indosat Starone
WIN
CAC GPRS
CAC-3G
Lippo-3G
XL -3G (TDD)
CAC GPRS
Source Frequency Directorate of DGPT 2004
14
Ministrys public announcement on their 3G
spectrum views

• Recent Indonesian Ministry of Communications
  public announcement
• Only keep 5 5 MHz of PCS spectrum with in UMTS
  band for Telkom Flexi and revoke all remaining
  current licenses
• Provide 10 MHz of guardband between PCS downlink
  and UMTS uplink bands
• Remaining 45 45 MHz to be auctioned for 4 WCDMA
  each 10MHz plus 5 additional for spare
• With this plan, Indonesia gets only 45 5 50
  MHz of 3G spectrum
• Under this plan, Flexis spectrum cannot be
  maintained and would have to be shifted to
  another slot
• This will affect more than one million CDMA2000
  subscribers

15
Trial Objective

• Providing feedback to the regulator for
  supporting the arrangement of new frequency
  allocation policy, particularly involving
  IMT-2000 and PCS-1900 frequency band
• Assessing the technical and commercial
  feasibility to extend the existing 2.5G services.
• Triggering customer awareness upon 3G technology
• Assessing 3G network system in terms of
• Network and service performance
• Interoperability between 2G 3G services
• Accelerating Indosats capability development on
  3G technologies and 3G services

16
Indosat needs 3G

• Maintain long-term corporate sustainability by
  implementing a natural evolution of 2G GSM
  services toward 3G services
• Allow Indosats customers to enjoy higher data
  rate communication while on the move
• Enrich varieties of telecommunication services to
  meet customer demands
• Possibility to obtain higher efficiency in voice
  and data communication (lower cost per Erlang)
• Possibility to obtain lower incremental CAPEX,
  quicker time to market, and avoiding tower
  jungle by utilizing and sharing existing 2G
  network and infrastructures, e.g. core network,
  BTS cabinet, transmission, sitac, shelter, tower,
  etc

17
Electronic applications (Telecommunication) to
improve public prosperity
21st Information Age
Facilitating an open economy and Promoting a
competitive market environment
E-government
E-commerce
E-transportation
E-manufacturing
E-finance
E-healthcare
E-learning
Creating new business and/or development
opportunities
Convergence / Intellectualization Value
Oriented / Globalization
Enhancing the productivity and efficiency of
existing sectors and industries
Service
Finance
ICT
Manufacture
SOC
Education
Commerce
20th Industrial Age
18
Thank You

• Peacefull World
• through
• Telecommunication Development