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Economic Aspects of Spectrum Management: an Indonesia Case Study

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Economic Aspects of Spectrum Management: an Indonesia Case Study 1 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 : [email protected] | [email protected] | Indosat IR - New Template v23 1220.pptx 1 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 2 Indosat IR - New Template v23 1220.pptx 2 COUNTRY PROFILE : INDONESIA 34 provinces* Population*: 248.8 million 511 districts/city* 80,714 villages* *2013 source: Indonesia Statistics Agency, 2014 3 Indosat IR - New Template v23 1220.pptx 3 THE ARCHIPELAGO ECONOMY : UNLEASHING INDONESIA’S POTENTIAL Source: McKinsey Global Institute, September 2012 4 Indosat IR - New Template v23 1220.pptx 4 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. 5 Indosat IR - New Template v23 1220.pptx 5 ICT INFRASTRUCTURE PROFILE : RADIO ACCESS NETWORK Cellular BTS Coverage 2G , 3G and 4G BTS cover all provinces providing more than 90% coverage of cellular. 6 Indosat IR - New Template v23 1220.pptx 6 SOCIO-ECONOMIC OF BROADBAND 7 Indosat IR - New Template v23 1220.pptx 7 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 8 Indosat IR - New Template v23 1220.pptx 8 BRTI & NATIONAL SPECTRUM MANAGEMENT ORGANIZATION STRUCTURE Minister of Communication and REGULATORY AREA Information Technology POLICY AREA FUTURE Telecommunication THE COMISSIONER OF BRTI Regulation Comitte EXPANSION OF (The BRTI Comissioner) BRTI MEMBER Directorate General of Directorate General of Directorate General of Research and Human Post and Information Resource Management Directorate General of Public Communication Resource Development Technology (Chairman Application of (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) 9 Indosat IR - New Template v23 1220.pptx 9 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 Indosat IR - New Template v23 1220.pptx10 10 IMT SPECTRUM USED IN INDONESIA (195 MHZ) 40 MHz 52,5 MHz 45 MHz 10+30 MHz 10 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) Indosat IR - New Template v23 1220.pptx 11 INDONESIA CELLULAR MARKET will grow to IDR 140 Trillion by 2020, fuelled by data revenue growth 12 Indosat IR - New Template v23 1220.pptx 12 INDONESIA CELLULAR MARKET The Scissor Effect 13 Indosat IR - New Template v23 1220.pptx 13 SPECTRUM MANAGEMENT FOR MOBILE BROADBAND ACCELERATION 14 Indosat IR - New Template v23 1220.pptx 14 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 17 Indosat IR - New Template v23 1220.pptx 17 SPECTRUM PRICING 18 Indosat IR - New Template v23 1220.pptx 18 MANAGING SPECTRUM OF 450 MHZ Channel Arrangement 19 Indosat IR - New Template v23 1220.pptx 19 MANAGING SPECTRUM OF 800 MHZ + E-GSM CASE STUDY : RE-FARMING & RE-PURPOSING A B 20 Indosat IR - New Template v23 1220.pptx 20 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 21 Indosat IR - New Template v23 1220.pptx 21 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 22 Indosat IR - New Template v23 1220.pptx 22 MANAGING SPECTRUM OF 2100 MHZ CASE STUDY : RE-FARMING 11 12 23 Indosat IR - New Template v23 1220.pptx 23 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 24 Indosat IR - New Template v23 1220.pptx 24 OUR NEXT CHALLENGE TO FULFILL SPECTRUM SCARCITY 25 Indosat IR - New Template v23 1220.pptx 25 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 26 Indosat IR - New Template v23 1220.pptx 26 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 28 Indosat IR - New Template v23 1220.pptx 28 SPECTRUM SHARING POLICY 29 Indosat IR - New Template v23 1220.pptx 29 LTE RAN SHARING WITH MOCN SPECTRUM SHARING PLMN ID A PLMN ID MNO A Core MNO B B City #1 Frequency POI MNO B 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 IDMNOPLMN B ID 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 30 Indosat IR - New Template v23 1220.pptx 30 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 31 Indosat IR - New Template v23 1220.pptx 31 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 ? 32 Indosat IR - New Template v23 1220.pptx 32 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 33 Indosat IR - New Template v23 1220.pptx 33 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 Indosat IR - New Template v23 1220.pptx 34.
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