OVERVIEW OF SPECTRUM ISSUES IN INDONESIA

1
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, 29th June 2010

2
PRESENTATION

• OVERVIEW
• MOBILE COMMUNICATIONS AND FREQUENCY BANDS
• IMT-ADVANCED SPECTRUM AND PROBLEMS
• SPECTRUM PRICING AND LICENSING REFORM

3
SOUTHEAST ASIA AND INDONESIA IN BRIEF (Ref
Wikipedia)

• South East Asia
• Area 5,000,000 km2
• Pops (2009) 593,000,000
• Density 116.5 people per km2
• GDP per capita (2009) US 2500
• Indonesia
• Area 1,919,440 km2 (land), 735,355 sq.mi (sea)
• Pops (2009) 229,965,000
• Density 119,9 people per km2
• GDP per capita (2009) US 4156

S.E Asia countries consist of Indonesia,
Malaysia, Singapore, Phillipines, Thailand,
Brunei, Vietnam, Myanmar, Laos, Cambodia, East
Timor, Papua New Guinea
4
1. INDONESIAN TELECOMMUNICATIONS GROWTH
Sumber Business Monitor International Report
2Q2008
5
INDONESIA ICT STATISTIC
Fixed Wireline
Fixed Wireless
Internet
Cellular
Number of subscribers
2.3 Millions
140.5 Millions
8.8 Millions
21.7 Millions

• 3 Operators

164 ISP, 25 MillionUsers

• 4 Operators

8 Operator (5 GSM 3 CDMA)
Penetration
9.53
61.72
10
3.81
Number of population More than 237.5 millions
pops Data Q1-2009
6
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

7
MOBILE OPERATORS IN INDONESIA(FDD / Paired Band)
Telkomsel Indosat XL Axiata Hutch CPT Axis
Starting of operation 1995 1994 1996 2004 2004
Number of subs (end of 2008) 65,300,000 36,500,000 26,000,000 4,501,000 3,000,000
Standard GSM/UMTS /HSPA GSM/UMTS /HSPA GSM/UMTS /HSPA GSM/UMTS /HSPA GSM/UMTS /HSPA
Frequency Band (MHz) 900/1800/ 2100 900/1800/ 2100 900/1800/ 2100 900/1800/ 2100 900/1800/ 2100
Bandwidth 40 MHz FDD 40 MHz FDD 20 MHz FDD 15 MHz FDD 20 MHz FDD
Notes Reference Number of subscribers Annual
report of operators year 2008, Ditjen Postel.
8
BAND PLAN GSM-900/1800
9
IMT-2000 (UMTS) BAND PLAN
10
MOBILE AND FWA OPERATORS IN INDONESIA(FDD /
Paired Band)
SAMPOERNA TI MOBILE-8 BAKRIE TELECOM TELKOM FLEXI INDOSAT STARONE SMART
Starting of operation 1985 1990s 1990s 2002 2002 2004
Number of subs (Y2008) N/A 3,004,400 7,300,000 12,725,000 761,589 N/A
Standard CDMA CDMA CDMA CDMA CDMA CDMA
Frequency Band (MHz) 450 850 850 850 850 1900
Bandwidth 3.69 MHz FDD 4.92 MHz FDD 4.92 MHz FDD 4.96 MHz FDD 2.26 MHz FDD 6.15 MHz FDD

• 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.

11
BAND PLAN CDMA-850
12
OPERATOR BWA TDD 2.6 GHz (Unpaired Band)
SATELIT BSS
CSM ELANG MAHKOTA MNC SKVISION (INDOVISION)
Starting of operation 2009 N.A 1996
Licensed Area Jakarta and some major cities in Java islands Jakarta and some major cities in Java islands Nationwide
Number of subs (end of 2008) N/A N/A lt 1,000,000
Standard Wimax Wimax BSS Satellite
Frequency Band (MHz) 2500 - 2515 2675 - 2690 2520 2670
Bandwidth 15 MHz TDD 15 MHz TDD 150 MHz (10 TXPDR _at_30 MHz)
13
2.6 GHz BAND PLAN OPTIONS
Status Quo Option
Rec ITU-R M.1036
Band Segmentation Option
14
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.

15
IDENTIFIED BANDS FOR IMT-ADVANCED (4G)

• In operation for Mobile Communication Services
• 450 MHz / 850 MHz Band / 1900 MHz Band
  (3GPP2/CDMA-based)
• 900 MHz Band / 1800 MHz / 2100 MHz Band
  (3GPP/GSM-based)
• Used by other services i.e. Satellite,
  Broadcasting Services, etc.
• 700 MHz Band
• 2500 MHz Band
• 3600 MHz Band

16
3. IMT-ADVANCED SPECTRUM PROBLEMS

• For existing bands of Mobile Communication
  Services
• Most of bands has no contigously large enough
  bandwidth available for 4G 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).

17
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.

18
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.

19
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
  (2nd round sealed bid auction), need to be
  improved.
• Result
• 3G network roll out has been implemented very
  rapidly.

20
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.

21
CLOSING REMARKS

• Most of identified spectrum for IMT-Advanced / 4G
  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 / 4G in Indonesia, taking into
  account the concerns of relevant parties.

22
Thank you

• Q A
• denny_at_Postel.go.id
• Ferry_a_wibowo_at_postel.go.id