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Workshop on Economic Aspects of Spectrum Management


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

Economic Aspects of Spectrum


Management: An Indonesia Case Study

Dr. Muhammad Imam Nashiruddin, MT


The Comissioner
Indonesia Telecommunication Regulatory Authority (BRTI)
Email : imam@brti.or.id | imam.brti@gmail.com |

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Agenda
1 COUNTRY PROFILE : INDONESIA

2 BRTI & NATIONAL SPECTRUM MANAGEMENT

3 SUMMARY OF ICT MARKET IN INDONESIA

4 SPECTRUM MANAGEMENT CASE STUDY


5 LESSON LEARNED AND CHALLENGES

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COUNTRY PROFILE : INDONESIA

34 provinces*
Population*: 248.8 million 511 districts/city*
80,714 villages*
*2013
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source: Indonesia Statistics Agency, 2014 Indosat IR - New Template v23 1220.pptx 3
THE ARCHIPELAGO ECONOMY :
UNLEASHING INDONESIA’S POTENTIAL

Source: McKinsey Global Institute, September 2012

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ICT INFRASTRUCTURE PROFILE :
FO Backbone NATIONAL 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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ICT INFRASTRUCTURE PROFILE :
RADIO ACCESS NETWORK
Cellular BTS Coverage

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

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SOCIO-ECONOMIC OF BROADBAND

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INDONESIA BROADBAND PLAN
TARGETS

2013 2019
Urban:
Fixed Broadband: Fixed Broadband: 71% HH (20Mbps);
15% HH (1Mbps) and 5% population; Mobile Broadband: 100% pop (1 Mbps)

Mobile Broadband: Rural:


12% population (512 kbps) Fixed Broadband: 49% HH (10Mbps);
Mobile Broadband: 52% pop (1 Mbps)

Utilization:
 Broadband service price: max 5% of average monthly income
 Priority Sectors: e-Government; e-Education; e-Health; e-Logistic, e-Procurement

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BRTI & NATIONAL SPECTRUM
MANAGEMENT
ORGANIZATION STRUCTURE
Minister of
Communication and
REGULATORY AREA Information Technology
POLICY AREA

Telecommunication THE COMISSIONER OF BRTI FUTURE


Regulation Comitte EXPANSION OF
(The BRTI Comissioner) BRTI MEMBER

Directorate General of Directorate General of


Resource Management Directorate General of Directorate General of Research and Human
Post and Information
Application of Public Communication Resource Development
Technology (Chairman (Vice Chairman of BRTI Information Technology and Information Center
of BRTI Comissioners) Comissioner)

Directorate of Office of
Directorate of Spectrum
Secretariat of Directorate of Spectrum Directorate of Spectrum Standardization of Telecommunication
Management System
Directorate General Policy and Planning Operation Postal and ICT Equipment Testing
and Control
Equipment Laboratory

Regional Office of
INDONESIA TELECOMMUNICATION REGULATORY AUTHORITY - Radio Frequency Spectrum Monitoring
BRTI (37 Offices)

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INDONESIA CELLULAR PROVIDER (Q3/2016)
OPERATOR SUBCRIBER RADIO ACCESS NETWORK TECHNOLOGY

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

40 MHz
52,5 MHz
45 MHz
10+30 MHz
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20 MHz

2,5 + 5 MHz
7.5
7.5
10
Sampoerna

450 MHz

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

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

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INDONESIA CELLULAR MARKET
The Scissor Effect

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SPECTRUM MANAGEMENT
FOR MOBILE BROADBAND ACCELERATION

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OUR REGULATORY MAIN STAKEHOLDER
GOVERMENT
1. TELECOMUNICATION PENETRATION
2. CYBER SOVERNEIGHTY
3. ECONOMIC GROWTH
4. NATIONAL COMPETITIVE ADVANTAGE

INDONESIA TELECOM REGULATORY AUTHORITY


INDUSTRY PEOPLE
1. HEALTHY COMPETITION 1. CUSTOMER PROTECTION
2. CLEAR & FAIR REGULATION 2. CUTOMER PRIVACY
3. BUSINESS SUSTAINABILITY 3. DATA PROTECTION & DATA PRIVACY
SPECTRUM PRICING

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SPECTRUM PRICING

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MANAGING SPECTRUM OF 450 MHZ

Channel Arrangement

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

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MANAGING SPECTRUM OF 900 MHZ
CASE STUDY : NEUTRAL TECHNOLOGY

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 MHZ
CASE STUDY : RE-FARMING
7.5 MHz 5 MHz 7.5 MHz 15 MHz 5 MHz 15 MHz 10 MHz 10 MHz

XL ISAT TSEL XL TSEL ISAT TSEL H3I

22.5 MHz 10 MHz 20 MHz 22.5 MHz

XL H3I ISAT TSEL

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MANAGING SPECTRUM OF 2100 MHZ
CASE STUDY : RE-FARMING

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MANAGING SPECTRUM 2300 MHZ
CASE STUDY : CONSOLIDATION
Existing

1 2 3
Plan

Spectrum auction at Allocate to Smartfren - Regional BWA endorse for the


December 2016 (30 MH) as consolidation of mobile national
(30 MHz) compensation for coverage (30 MHz)
migration from
PCS1900 & swap for
CDMA 850 MHz

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OUR NEXT CHALLENGE
TO FULFILL SPECTRUM SCARCITY

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RE-PURPOSING 2,6 GHZ ?
2500 2570

Band 7 UL Band 7 DL
2570 2620

Band 38 TDD

Band 41 TDD
2496
2690

2500 2520 2670 2690

BWA BSS BWA

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DIGITAL DIVIDEN 700 MHZ (2018-2019)
ANALOG TELEVISION ERA 328 MHz
478 806 MHz

TV Analog
Penerimaan Tetap Free To Air (FTA)

BROADCASTING DIGITALIZATION (ASO)


DIGITAL TELEVISION ERA
Future Digital TV Terestrial DIGITAL
DTV Free To Air (FTA) DIVIDEND
478 526 694 806 MHz
192 MHz
112 MHz

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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LTE RAN SHARING
WITH MOCN SPECTRUM SHARING
PLMN ID A
PLMN ID MNO A Core MNO B
B
Frequency POI MNO B
City #1 PLMN ID A PLMN ID HSS
B GW MME HSS
Transmission Access
MNO Site #1
A
POI MNO A GW MME HSS
Site #2
Home Core MNO A
Shared Dedicated
eNodeB Transmission Core

PLMN ID MNO B Core MNO B


PLMN ID MNO B
MNO A
Frequency POI MNO B
City #2 PLMN IDMNO B ID
PLMN
MNO A GW MME HSS
Transmission Access
MNO Site #3

B
POI MNO A GW MME HSS
Site #4
Home Core MNO A
Shared Dedicated
eNodeB Transmission Core

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The Way Forward :
Hybrid Model for Indonesia Case

URBAN : SUB-URBAN / RURAL :


• High Populated Area • Less Populated Area
• PASSIVE SHARING - MNO build • ACTIVE SHARING – 4G/3G MOCN & 2G RAN Sharing for
their own network to get more MORE EFFICIENT Network Roll-out and better COVERAGE
CAPACITY

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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

1 SPECTRUM SCARCITY IS HERE, NETRAL TECHNOLOGY –


NETRAL SERVICES ?
2 SPECTRUM FLEXIBILITY IS INEVITABLE

3 COLLABORATIVE REGULATION (5.0) IS NEEDED

4 KEY SUCCESS FACTOR : MULTISTAKEHOLDER APPROACH

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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

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