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Economic Aspects of Spectrum Management: An Indonesia Case Study

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Workshop on Economic Aspects of Spectrum Management

Dr. Muhammad Imam Nashiruddin, MT

The Comissioner

Indonesia Telecommunication Regulatory Authority (BRTI)

Email : imam@brti.or.id | imam.brti@gmail.com |

21-23 November 2016, Teheran – I.R. Iran

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Agenda

COUNTRY PROFILE : INDONESIA

SUMMARY OF ICT MARKET IN INDONESIA

SPECTRUM MANAGEMENT CASE STUDY

LESSON LEARNED AND CHALLENGES

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2

4

5

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BRTI & NATIONAL SPECTRUM MANAGEMENT

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COUNTRY PROFILE : INDONESIA

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Population*: 248.8 million34 provinces*

511 districts/city*80,714 villages*

*2013source: Indonesia Statistics Agency, 2014

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THE ARCHIPELAGO ECONOMY :UNLEASHING INDONESIA’S POTENTIAL

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Source: McKinsey Global Institute, September 2012

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ICT INFRASTRUCTURE PROFILE : NATIONAL BACKBONEFO Backbone

FO backbone covers more than 72% of districts. Our National FO systems (PALAPA RING) will be ready for service in 2018.

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Cellular BTS Coverage

2G , 3G and 4G BTS cover all provinces providing more than 90% coverage of cellular.

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ICT INFRASTRUCTURE PROFILE : RADIO ACCESS NETWORK

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SOCIO-ECONOMIC OF BROADBAND

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INDONESIA BROADBAND PLAN TARGETS

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2013

Fixed Broadband:15% HH (1Mbps) and 5% population;

Mobile Broadband: 12% population (512 kbps)

Urban:Fixed Broadband: 71% HH (20Mbps);

Mobile Broadband: 100% pop (1 Mbps)

2019

Utilization: Broadband service price: max 5% of average monthly income

Priority Sectors: e-Government; e-Education; e-Health; e-Logistic, e-Procurement

Rural:Fixed Broadband: 49% HH (10Mbps); Mobile Broadband: 52% pop (1 Mbps)

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BRTI & NATIONAL SPECTRUM MANAGEMENT ORGANIZATION STRUCTURE

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Minister of Communication and

Information Technology

Directorate General of Post and Information

Technology (Chairman of BRTI Comissioners)

Directorate General of Application of

Information Technology

Directorate General of Resource Management

(Vice Chairman of BRTI Comissioner)

Secretariat of Directorate General

Directorate of Spectrum Policy and Planning

Directorate of Spectrum Operation

Directorate of Spectrum Management System

and Control

Regional Office of

Radio Frequency Spectrum Monitoring

(37 Offices)

Directorate of Standardization of

Postal and ICT Equipment

Office of Telecommunication Equipment Testing

Laboratory

Directorate General of Public Communication

and Information

Research and Human Resource Development

Center

Telecommunication Regulation Comitte

(The BRTI Comissioner)

INDONESIA TELECOMMUNICATION REGULATORY AUTHORITY -BRTI

THE COMISSIONER OF BRTI FUTURE EXPANSION OF BRTI MEMBER

REGULATORY AREA POLICY AREA

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INDONESIA CELLULAR PROVIDER (Q3/2016)

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OPERATOR SUBCRIBER RADIO ACCESS NETWORK

118.140.245 850/900/1800/2100 (52,5 MHz)

TECHNOLOGY

2G/3G/4G

50.846.707 850/900/1800/2100 MHz (40 MHz) 2G/3G/4G

45.000.000 900/1800/2100 MHz (45 MHz) 2G/3G/4G

25.102.343 1800/2100 MHz (20 MHz) 2G/3G/4G

2.438.843 850/2300 MHz (30 MHz) 2G/3G/4G

52.402 450 MHz (7,5 MHz) 2G/4G

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IMT SPECTRUM USED IN INDONESIA (195 MHZ)

107.5

Sampoerna

52,5 MHz40 MHz

7.5

10

45 MHz

10+30 MHz

20 MHz

2,5 + 5 MHz

450 MHz

AVAILABLE FOR 2016 AUCTION : 2x10 MHZ (FDD 2100) + 1x30 MHz (TDD 2300)

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INDONESIA CELLULAR MARKET

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will grow to IDR 140 Trillion by 2020, fuelled by data revenue growth

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INDONESIA CELLULAR MARKET

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The Scissor Effect

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SPECTRUM MANAGEMENTFOR MOBILE BROADBAND ACCELERATION

OUR REGULATORY MAIN STAKEHOLDER

GOVERMENT

INDUSTRY PEOPLE

1. TELECOMUNICATION PENETRATION

2. CYBER SOVERNEIGHTY

3. ECONOMIC GROWTH

4. NATIONAL COMPETITIVE ADVANTAGE

1. HEALTHY COMPETITION

2. CLEAR & FAIR REGULATION

3. BUSINESS SUSTAINABILITY

1. CUSTOMER PROTECTION

2. CUTOMER PRIVACY

3. DATA PROTECTION & DATA PRIVACY

INDONESIA TELECOM REGULATORY AUTHORITY

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SPECTRUM PRICING

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SPECTRUM PRICING

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MANAGING SPECTRUM OF 450 MHZ

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Channel Arrangement

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MANAGING SPECTRUM OF 800 MHZ + E-GSMCASE STUDY : RE-FARMING & RE-PURPOSING

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A

B

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MANAGING SPECTRUM OF 900 MHZCASE STUDY : NEUTRAL TECHNOLOGY

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Technology Evolution Path (All Operator are already contigous) :

GSM/EDGE UMTS HSPA HSPA+ LTE

All Operator ready to implement UMTS / 3G 900

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MANAGING SPECTRUM OF 1800 MHZCASE STUDY : RE-FARMING

XL ISAT TSEL TSEL ISAT TSEL H3IXL

7.5 MHz 5 MHz 15 MHz7.5 MHz 5 MHz 15 MHz 10 MHz 10 MHz

H3I ISAT TSELXL

22.5 MHz 20 MHz 22.5 MHz10 MHz

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MANAGING SPECTRUM OF 2100 MHZCASE STUDY : RE-FARMING

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11 12

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MANAGING SPECTRUM 2300 MHZCASE STUDY : CONSOLIDATION

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- Regional BWA endorse for the

consolidation of mobile national

coverage (30 MHz)

1 2 3

Spectrum auction at

December 2016

(30 MHz)

Allocate to Smartfren

(30 MH) as

compensation for

migration from

PCS1900 & swap for

CDMA 850 MHz

Existing

Plan

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OUR NEXT CHALLENGETO FULFILL SPECTRUM SCARCITY

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RE-PURPOSING 2,6 GHZ ?

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BWA BWABSS

2500 2520 2670 2690

2500 2570

2570 2620

Band 7 UL Band 7 DL

Band 38 TDD

24962690

Band 41 TDD

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DIGITAL DIVIDEN 700 MHZ (2018-2019)

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192 MHz

TV Analog Penerimaan Tetap Free To Air (FTA)

478 806 MHz328 MHz

112 MHz

BROADCASTING DIGITALIZATION (ASO)

ANALOG TELEVISION ERA

Digital TV TerestrialFree To Air (FTA)

526 694

Future DTV

DIGITAL DIVIDEND

478 806 MHz

DIGITAL TELEVISION ERA

There is 112 MHz (694 – 806 MHz) Digital Dividend available, or 2 x 45 MHz FDD can use to accelerate mobile broadband in nation

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SPECTRUM SHARING POLICY

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HSSCity #1

MNOA

Home

Site #1Transmission Access

Core MNO B

Core MNO A

Shared Dedicated

PLMN IDB

PLMN ID A

MNO A Frequency

GW

GW

MME

MME

eNodeB Transmission Core

PLMN ID APLMN IDB

Site #2POI MNO A

POI MNO B

HSS

HSS

City #2

MNOB

Home

Site #3Transmission Access

Core MNO B

Core MNO A

Shared Dedicated

PLMN IDMNO A

PLMN IDMNO B

MNO BFrequency

GW

GW

MME

MME

eNodeB Transmission Core

PLMN ID MNO BPLMN IDMNO A

Site #4POI MNO A

POI MNO B

HSS

HSS

LTE RAN SHARINGWITH MOCN SPECTRUM SHARING

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The Way Forward :Hybrid Model for Indonesia Case

URBAN :• High Populated Area

• PASSIVE SHARING - MNO build

their own network to get more

CAPACITY

SUB-URBAN / RURAL :• Less Populated Area

• ACTIVE SHARING – 4G/3G MOCN & 2G RAN Sharing for

MORE EFFICIENT Network Roll-out and better COVERAGE

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The Way Forward :Trend of Regulation Flexibility

1. Technology Flexibility : Neutral Technology

2. Infrastructure Flexibility : Network Sharing

3. Coverage Area Flexibility : National Roaming

4. Spectrum Flexibility : Spectrum Sharing/Trading

5. Operations Flexibility : MVNO, Managed Services ?

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LESSON LEARNED & RECOMENDATION

COLLABORATIVE REGULATION (5.0) IS NEEDED

1

2 SPECTRUM FLEXIBILITY IS INEVITABLE

KEY SUCCESS FACTOR : MULTISTAKEHOLDER APPROACH

SPECTRUM SCARCITY IS HERE, NETRAL TECHNOLOGY –NETRAL SERVICES ?

3

4

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Twenty years from now you will be more disappointed by the things you didn't

do than by the ones you did do. So sail away from the safe harbour. Catch the

trade winds in your sails. Explore. Dream. Discover.

- Mark Twain