Regulation Challenges of 5G Spectrum
Deployment at 3.5 GHz: The Framework for
Indonesia
Luthfijamil Sastrawidjaja
Graduate Program in Telecommunications
Management
Department of Electrical Engineering
Universitas Indonesia
Depok, Indonesia
email: luthfijamil.s@ui.ac.id
Abstract—5G is expected to launch in 2020. A good
ecosystem is needed to optimally support the implementation of
5G, such as via regulation. One of the problems and challenges
in regulation is the allocation of spectrum frequencies. Various
research has recommended the 3.5 GHz spectrum frequency for
the implementation of 5G technology. Unfortunately, in
Indonesia, the 3.5 GHz spectrum frequency has been used for
fixed satellite services. With an uneven spread of optics, and
Indonesia consisting of thousands of islands, satellite service is
still needed in Indonesia. Therefore, it is necessary to evaluate
the 3.5 GHz spectrum frequency’s use for 5G technology in
Indonesia. In this paper, we propose a framework to evaluate
this regulation with Indonesia as a case study, which is based on
economic, social, technological, and political perspectives. These
perspectives are needed to ensure the evaluation of spectrum
usage is accurate and can describe current industry conditions
for 5G’s use of the 3.5 GHz spectrum in Indonesia.
Keywords—5G, Satellite, Spectrum, Indonesia
I. INTRODUCTION
5G technology, which is predicted to launch in 2020, is
expected to reach data transfer speeds of up to one gigabit,
reduce latency, support massive machine-to-machine
communication, and improve spectral and energy efficiency
of the future generation networks [1]. Achieving the
implementation in 2020 will require an ecosystem that can
support 5G technology, including devices and regulations. An
important aspect of the regulations is spectrum frequency
allocation because spectrum frequencies are a limited resource
in telecommunications and cannot be increased. Therefore,
ensuring the 5G technology implementation is optimal and
can be integrated with other radio technologies will require
good management.
Various research studies on spectrum frequencies that
could be used to support 5G have divided them into three
categories: low frequencies below 1 GHz, mid-range
frequencies between 1 and 6 GHz, and high frequencies above
6 GHZ [2]. One of the most widely recommended spectrum
frequencies for 5G allocation is the 3.5 GHz spectrum
frequency [3]. This spectrum frequency is considered to have
good capacity and coverage, which is why it has become a
focus in 5G technology research. Unfortunately, in some
countries, the 3.5 GHz spectrum frequency is currently being
978-1-5386-5251-0/18/$31.00 ©2018 IEEE
Muhammad Suryanegara
Graduate Program in Telecommunications
Management
Department of Electrical Engineering
Universitas Indonesia
Depok, Indonesia
email: suryanegara@gmail.com,
m.suryanegara@ui.ac.id
allocated for fixed satellite services, including Indonesia.
Considering the above issues, this paper will discuss the
existing regulatory challenges in implementing the 3.5 GHz
spectrum frequency for 5G technology by using Indonesia as
a case study.
In this paper, we propose a framework to evaluate the
allocation of 3.5 GHz spectrum frequency for 5G technology.
For this evaluation, social, technological, economic, and
political perspectives are used, which improves the evaluation
results’ accuracy. The political perspective helps determine
which spectrums should be used to benefits the government,
while the economic perspective helps identify which satellite
services have consumers on the 3.5 GHz spectrum. The social
perspective helps determine what impacts economic growth
will have on the community. Finally, the technology
perspective helps determine whether 5G technology can be
integrated with existing technology and identify the
technological challenges involved in implementing 5G. In this
paper, the discussion will be divided into four chapters:
choosing the 5G spectrum frequency, challenges involved in
5G implementation in Indonesia, an evaluation of the
proposed framework, and finally, the conclusion and
recommendations for future research.
II. 5G SPECTRUM FREQUENCY
A. 5G Era
5G technology is different from 4G technology. It uses a
more central network architecture, cloud radio access network
architecture (C-RAN), beamforming directional antenna,
hybrid network, standalone mm-wave and is split between
user and control planes [4]. Other benefits of 5G technology
include increasing the capacity by 100 times and data transfer
rate up to 10–100 times on a large scale and providing cheaper
and better service for customers [4]. In its application, 5G
enhances at three usage scenarios, i.e mobile broadband
(eMBB), ultra-reliable and low latency (URLLC), and
massive machine-type communications (mMTC), as shown in
Figure 1.
eMBB is a technology that enables very high speed
communications and provides a major performance
improvement when compared to existing broadband scenarios
[5]. The applications of eMBB includes virtual reality,
213
augmented reality, telemedicine and any services requiring
high speed data. 5G technology research has begun to focus
on areas of the spectrum that have a wide bandwidth and faster
data communication speeds.
Fig. 1. Benefits of 5G [6]
URLLC is a technology that provides a stable network
guarantee and the lowest latency values when initiating
connections to the network. A prominent example of this
technology is to support autonomous vehicles to ensure safe
operation [5] because URLLC strongly supports services that
requires real-time correspondence with the network. The
interaction between humans and machines cannot be avoided
in the application of the internet of things (IOT) in industrial
scenarios involving smart manufacturing, and there is an
increasing need for faster data transfer speeds in smart
manufacturing. Therefore, a network that has low latency
values, a more accurate signal transmission process, and faster
data rates will be needed.
mMTC technology can interconnect massive numbers of
devices and operate smoothly [5]. Researchers have proven
that mMTC can connect 1 million devices/km2 in a more
energy efficient manner than previous technologies [6].
Because of that capability, A large-scale of IOT equipment
that could communicate to each other can help the modern
industry become a smart industry.
B. Spectrum Allocation Recommendations for 5G
In the allocation determination process, the frequency
spectrum that will be used to support 5G is divided into three
categories [2]. First, frequencies below 1 GHz can support 5G
technology use anywhere, especially indoors, and would
require a bandwidth of 20 MHz to support 5G technology [7].
Second, frequencies below 6 GHz have a sizeable bandwidth
and considerable range, so these will be used in the initial
stage of 5G technology implementation, especially in Europe
and America. At this sub-frequency, the bandwidth required
to support 5G technology is 100 MHz [7]. Third, frequencies
above 6 GHZ are available with very large bandwidths that
can guarantee a large capacity and global harmonization. At
frequencies above 6 GHz, between 20–300 GHz are
considered to provide high data transfer rates and low latency
and can be used in areas where the level of needed is high
enough. It also allows global harmonization, which can be
economically advantageous because the scale of
manufacturing devices can be large; it will reduce the
complexity of a device and reduce interference between
214
countries [2]. In this frequency range, the bandwidth required
to support 5G technology is 800 MHz [7].
Notably, in Table 1, the 3.5 GHz spectrum frequency has
the most support operators. This is because the 3.5 GHz
spectrum frequency’s capacity and coverage specifications are
sufficient to meet the requirements of 5G technology [3].
Some challenges encountered at frequencies below 6 GHz are
the density of these frequencies at present, and the
determination of slightly different spectrum usage in each
country raises problems due to the degree of complexity and
difficulty in determining the harmonized spectrum frequency
between countries for 5G technology [2]. This is true for the
2.3–2.4 GHz and 3.4–3.8 GHz spectrum frequencies, as
shown in Table 1 below. Therefore, the regulation of spectrum
frequency management is important, especially to support the
implementation of 5G technology in 2020
TABLE.I SPECTRUM ALLOCATION FOR 5G AT NEW BANDS [7]
Spectrum Allocation for 5G at New Bands
New bands BW [MHz] Supporting operators
NTT DOCOMO, KDDI,
SBM, China Unicom, China
Telecom, KT, SK Telecom,
n77 (3.3-4.2GHz)
10-100 LG Uplus, Etisalat, Orange,
n78(3.3-3.8GHz)
Telecom Italia, British
Telecom, Deutsche
Telekom, Telstra
n79 (4.4-5GHz) 40-100
KDDI, SBM, CMCC, China
Unicom, China Telecom
NTT DOCOMO, KDDI,
n257 (26.5- SBM, CMCC, SK Telecom,
29.5GHz) LG Uplus, Etisalat, Orange,
50-400
n258 (24.25- Verizon, T-Mobile, Telecom
27.5GHz) Italia, British Telecom,
Deutsche Telekom, Telstra
n260 (37-40GHz) 50-400 AT&T, Verizon, T-Mobile
40.5-43.5 GHz 50-400 AT&T, Verizon, T-Mobile
37-43.5 GHz 50-400
AT&T, Verizon, T-Mobile
III. IDENTIFICATION CHALLENGES: 5G IN INDONESIA
A. Mobile Cellular Demand in Indonesia
There is currently an increasing need for mobile cellular
technology, resulting in an increasing demand for spectrum
frequency; this increasing demand plays an important role in
the telecommunications industry’s development, especially
cellular services. The situation is particularly evident in
developing countries where the availability of cellular
networks is much higher than fixed networks. In Figure 2, we
can see that the number of mobile cellular users in Indonesia
has increased significantly since 2011. Although the number
of mobile users decreased to 301.81 million in 2017 due to the
regulation of re-registration in Indonesia, the number is still
predicted to rise to approximately 397.19 million users in
2020, which would certainly increase spectrum frequency
needs.
Spectrum frequencies are a limited resource in the
telecommunications industry, and it has two dimensions [8].
First, in the economic dimension, the efficiency of spectrum
usage will show that maximizing the available spectrum
frequency’s use requires an assessment of frequency use in the
community, which is provided by either the government or
other authorities. Second, as a dimensional technique, the
efficiency of spectrum usage at the ground level signifies the TABLE II. SPECTRUM FREQUENCY REGULATION IN INDONESIA [9]
possibility of maximizing spectrum utilization.
Spectrum Frequency Regulation in Indonesia
Spectrum
Region 3 ITU Indonesia Allocation
Frequencies
MOBILE SUBSCRIBER IN INDONESIA Fix 5.429
(2011-2020) IN MILLIONS RADIOLOCATION Mobile 5.429

397.19
385.57

383.30
3300-3400 Amateur Radiolocation

369.41
5.149 5.429 Amateur
338.95
325.58
313.23

5149 INS27

301.81
281.96
249.81

FIXED SATELLITE
FIXED SATELLITE
Amateur
Amateur
3400-3500 Mobile 5.423B
Mobile 5.423B
Radiolocation 5.433
Radiolocation 5.433
5.282 5.432 5.432A
5.282 5.432 5.432A
INS28

FIXED SATELLITE FIXED SATELLITE

Amateur Amateur
3500-3600 MOBILE Except Flight
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 MOBILE Except Flight
Mobile 5.433A Mobile 5.433A
Fig. 2. Mobile cellular subscribers in Indonesia 2011-2020 (source: Radiolocation 5.433 Radiolocation 5.433
KOMINFO) INS28

By examining the conditions previously described, FIXED SATELLITE FIXED SATELLITE

spectrum frequency management becomes a challenge that 3600-3700 MOBILE Except Flight MOBILE Except Flight
must be managed efficiently and optimally by the regulator, mobile Mobile
Radiolocation Radiolocation
so the future development of mobile technologies like 5G can 5.435 5.435 INS28
proceed as much as possible according to its purpose.
Furthermore, management of the spectrum is important FIXED SATELLITE
FIXED SATELLITE
because it will determine how the management is structured, MOBILE Except Flight
MOBILE Except Flight
3700-4200 Mobile
industry performanced and how it can be safeguarded for the Mobile
community, as well as the security and defense of the country. INS29

B. Spectrum Frequency Allocation in Indonesia

In the management and regulation of the spectrum
frequency, ITU provides regulators to their respective regions
and national parts [8] because each region or country certainly
has needs and interests that are not always the same as other
regions or countries. The regulation and management of
Indonesia’s spectrum frequency is performed by the Minister
of Communication and Informatics of the Republic of
Indonesia (KOMINFO), which is authorized to develop and
establish policies and regulations for Indonesia’s
telecommunication industry. It is a common policy action that
regulators have assigned spectrum frequencies by issuing
licenses to specific users for specific purposes, limiting access
to and use of the radio spectrum [8]. The traditional approach
can prescribe how the spectrum is used and can reduce
interference between users. KOMINFO, like other regulators,
has assigned spectrum frequencies via licenses. This type of
regulation is included the ministry’s regulation number 25 of
2014 on the allocation of Indonesia’s radio spectrum
frequencies.
The purpose of the regulation is to manage how radio
spectrum frequencies are allocated in Indonesia and become a
reference in the management of radio frequency bands that are
more specific, detailed, and operational [9]. This document is
also intended for existing and prospective spectrum users to
recognize allocators that have been conducted in the field on
the frequency spectrum, such as the type of service, allocation,
and related channel. Hence, if there is a conflict regarding
spectrum licensing, this document will help resolve it.
We can see in Table 2 that 3.3–3.8 GHz, or so-called 3.5
GHz, spectrum frequencies in Indonesia are already inhabited
by fixed satellite services. Indonesia, which consists of
thousands of islands, still requires satellite services to
implement broadband technology, especially in its outer
regions. The uneven distribution of fiber optic cable also
increases satellite use for telecommunications in Indonesia.
Therefore, implementing 5G technology in Indonesia on the
3.5 GHz spectrum frequency will certainly pose a challenge.
IV. PROPOSED EVALUATION FRAMEWORK: REGULATION FOR
INDONESIA
Spectrum frequency management for 5G technology is a
crucial issue and will affect the implementation of this
technology in 2020. Due to the challenges described in the
previous section regarding the use of the 3.5 GHz spectrum
frequency in Indonesia by satellite services, it is necessary to
evaluate whether the recommended 3.5 GHz spectrum is
appropriate for use in Indonesia and whether it would be
profitable.
This paper proposes an evaluation framework, which is
presented in Figure 3. The proposed framework should
consider social, technological, economic, and political
perspectives. Therefore, the recommendations generated in
this paper represent all these perspectives and will produce
good evaluation results.

215

Fig. 3. Proposed Evaluation Framework
A. Social Perspective
A social perspective is taken to identify impacts 5G will
have on the people of Indonesia. To examine the social
impacts, an evaluation of the impact of existing 5G technology
on Indonesia’s economy and people’s welfare is needed on a
macro scale. This can be done by conducting a forecast
analysis of the economic benefits that 5G technology could
provide for average Indonesian citizens’ income.
An impact analysis of potential social welfare effects that
would result from the loss of fixed satellite services on the
3.5 GHz spectrum should also be performed. The purpose of
this type of analysis is to determine what costs will be
incurred if 5G services are implemented on the 3.5 GHz
spectrum, which means there will be a transfer of spectrum
allocations for satellite services. After we conduct a cost-
benefit analysis, we will know if the implementation of 5G
on the 3.5 GHz spectrum will benefit or negatively impact the
society’s welfare.
B. Technological Perspective
The technological perspective is taken to determine if 5G
technology devices can function in Indonesia. The readiness
of 5G technology tools is very important for the
implementation of 5G technology because without them, 5G
cannot be implemented. It is, therefore, necessary to evaluate
which 5G devices are ready to be present in Indonesia. This
perspective will be used to identify what types of
technological problems will be encountered on the 5G
network.
Three technical issues need to be tested:
• Interference, such as problems accessing the technology
or when radio host interference becomes a problem in
the radio access network (RAN) [10]. There are two
216
types of interference. Co-tier interference involves
interference within the same network layer element
(e.g., between adjacent femto cell positions), and cross-
tier interference occurs when there is interference at
different network equipment layers (e.g., between a
femto user terminal [FUT] and the user terminal macro
[MUT]) [10]. One way to evaluate the interference
involves using the following formula [11]:
∝ ∝
(1)
Where α1 is the path loss value of the base station macro
(MBS), and α2 is the path loss value of the femto base
station (FBS). M is the distance from FUT to MBS. D is
the distance between MBS and MUT, and d is the
distance from MUT to FBS. H is the distance between
FUT and MBS, while f1 and f2 are factors influencing
interference, such as modulation, synchronization,
orthogonal factors, and noise.
• Network architecture is another issue involved in 5G
implementation. Currently, there is no architecture set to
the standard for 5G technology. Technologies such as C-
Ran, mobile edge computing (MEC), and device-to-
device (D2D) are being developed to support 5G
technology [10].
• Coexistence with existing networks is the third technical
issue. In practice, 5G technology is unlikely to directly
replace previous technologies such as 4G, 3G and 2G
overnight [10]. So, the most crucial issue currently is
how the process of transitioning from previous
technologies to 5G will unfold. For a smooth transition,
coexistence between 5G and previous technology is
required. In this case, coexistence may be accomplished
via the use of different spectrum allocations. Therefore
studying the 5G spectrum becomes the key to supporting
this technology.
C. Economic Perspective
The economic perspective is taken to identify the
potential benefits that Indonesia will gain by implementing 5G
technology. This can be done by analyzing the economic
benefit of 5G technology that will be obtained by the
government of Indonesia. Given that the 3.5 GHz spectrum is
already inhabited by satellite services, when the spectrum is
allocated to 5G, it will incur a satellite consumer's cost (BR)
to be borne by the Indonesian government when the allocation
occurs.
To examine the parameters listed above, the drama net
benefit approach should be used; using this formula will help
determine whether it is worth transferring the 3.5 GHz
spectrum from satellite to 5G services. Below is the formula
that will be used to evaluate the policy [12]:
(2)
where :
• BHP is a right of use fee for the allocation of the
spectrum frequency applied by the government.
 • BP is a licensing fee that may appear in the
transaction process.
• BR is the value of the loss that must be replaced by
the government, either to the company or customer.
D. Political Perspective
A political perspective is taken to evaluate the political
impact of implementing 5G technology on the 3.5 GHz
spectrum. The satellite operators who already have services
in the 3.5 GHz spectrum will be impacted. Therefore, an in-
depth interview with satellite operators, cellular operators,
and the government regarding the use of 5G on the 3.5 GHz
spectrum is needed to determine what impacts will be
generated.
V. CONCLUSIONS AND FUTURE STUDIES
This paper has proposed a framework to evaluate the
allocation of 3.5 GHz spectrum frequencies for 5G
technology. The framework consists of social, technological,
economic, and political perspectives. Spectrum frequencies
are a limited resources in the telecommunication industry, so
they need to be managed efficiently and optimally. In
implementing 5G technology, the 3.5 GHz frequency
spectrum is recommended in some studies because it has the
sufficient range and capacity to provide 5G technology
services. However, given that the 3.5 GHz spectrum
frequencies are used by satellite services in Indonesia, an
evaluation is required using a cost-benefit analysis to
determine whether the use of 3.5 GHz spectrum frequencies
is appropriate and advantageous for Indonesia. This
evaluation should include economic, technological, social,
and political perspectives so it can be broader and provide
more accurate recommendations. The future work of this
research is to develop regulatory recommendations for the
Indonesian government by using this proposed framework.
ACKNOWLEDGEMENT
This research is funded by Hibah Penelitian Unggulan
Perguruan Tinggi 2018, Ministry of Higher Education and
Research and Technology Republic of Indonesia. This
article’s publication is supported by the United States Agency
for International Development (USAID) through the
Sustainable Higher Education Research Alliance (SHERA)
Program for Universitas Indonesia’s Scientific Modeling,
217
Application, Research, and Training for City-centered
Innovation and Technology (SMART CITY) Project, Grant
#AID-497-A-1600004, Sub Grant #IIE-00000078-UI-1.
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