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SPECTRUM MANAGEMENT
     IN INDONESIA
       Heru Sutadi
2




OVERVIEW
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
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 RESOURCES
MANAGEMENT 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 development
B. 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
S-R MANAGEMENT
                                                              8




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
R
        Radio Frequency Monitoring System                        9




Medan




                      Samarinda




           Cangkudu
                                                       Merauke


                                  Kupang
                                           Fixed Monitoring
                                            Station LF-HF
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   A list of questionnaires put in web, 78 responders
2005            received
3G Licensing Process (2)
End of August 2005                    Government announcement on the policy of
                                      re – arrangement and the selection of 3G Operators

Jan 2006 – Feb 2006                   - 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 :
7-8 Feb 2006                          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 bid
Annual 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 billions
For the license year - 10 Years Rp 6032 billion
2nd and 3rd Carrier for 3G
 Most subcribers get the broadband from the mobile
   The subcribers increase drastically
   I-Phone and Blackberry push the traffic of broadband
   Users habit, always connected to the social networking site
   Facebook fenomena
   Blackberry 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 –      Questionnaires are put in Web for public
25 May 2006     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
2. S-R USAGE
   – Based on radio station
   – Bandwidth
3. License coverage
4. Condition
5. PROSEDURE
6. LICENSING MECHANISM
7. UTILIZATION RIGHT FEE
8. S-R USAGE DATA
RADIO STATION LICENSE – DGPT DATA BASE                               20




                                 No.   Jenis Layanan (Service)    Persen
                                  1    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%
                               TOTAL                             100.000%
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
CHALLENGES
2. Creating S-R policy to realize Indonesian welfare
3. S-R should BE managed by a strong institution,
   comprehensive, systemathic and profesional Human
   Resources
4. Accomodating future need and technology trend
5. Strengthening and harmonizing all S-R policy and
   regulation between the agencies following their own
   responsibility and duty
Thank you
for your attention…




          Heru Sutadi
   Email: herusutadi@hotmail.com
        Twitter: @herusutadi
    Website: www.herusutadi.com

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SPECTRUM MANAGEMENT TRENDS IN INDONESIA

  • 1. SPECTRUM MANAGEMENT IN INDONESIA Heru Sutadi
  • 2. 2 OVERVIEW 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
  • 4. 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
  • 5. B. SPECTRUM RADIO FREQUENCY MANAGEMENT
  • 6. 6 SPECTRUM RESOURCES MANAGEMENT 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. 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 development B. 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 8 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
  • 9. R Radio Frequency Monitoring System 9 Medan Samarinda Cangkudu Merauke Kupang Fixed Monitoring Station LF-HF
  • 10. C. POLICY PLANNING AND PROGRESS REPORT
  • 11. 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
  • 12. 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 A list of questionnaires put in web, 78 responders 2005 received
  • 13. 3G Licensing Process (2) End of August 2005 Government announcement on the policy of re – arrangement and the selection of 3G Operators Jan 2006 – Feb 2006 - 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 : 7-8 Feb 2006 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 bid Annual 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 billions For the license year - 10 Years Rp 6032 billion
  • 14. 2nd and 3rd Carrier for 3G  Most subcribers get the broadband from the mobile  The subcribers increase drastically  I-Phone and Blackberry push the traffic of broadband  Users habit, always connected to the social networking site  Facebook fenomena  Blackberry 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
  • 15. 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 – Questionnaires are put in Web for public 25 May 2006 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
  • 16. 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)
  • 17. 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
  • 19. 19 LICENSING PROCEDURES 2. S-R USAGE – Based on radio station – Bandwidth 3. License coverage 4. Condition 5. PROSEDURE 6. LICENSING MECHANISM 7. UTILIZATION RIGHT FEE 8. S-R USAGE DATA
  • 20. RADIO STATION LICENSE – DGPT DATA BASE 20 No. Jenis Layanan (Service) Persen 1 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% TOTAL 100.000%
  • 22. 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
  • 24. 24 PROSPECT AND FUTURE CHALLENGES 2. Creating S-R policy to realize Indonesian welfare 3. S-R should BE managed by a strong institution, comprehensive, systemathic and profesional Human Resources 4. Accomodating future need and technology trend 5. Strengthening and harmonizing all S-R policy and regulation between the agencies following their own responsibility and duty
  • 25. Thank you for your attention… Heru Sutadi Email: herusutadi@hotmail.com Twitter: @herusutadi Website: www.herusutadi.com