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(Jakarta, 9th of January 2012) - Ministry of Communication and Information Technology, Directorate General Informatics and Post Devices Resources (SDPPI) in particular, through this press release perform public test regarding White Paper on 2300 - 2360 MHz Frequency Band Usage for Wireless Broadband.

This document is a Government policy draft that is prepared in order to give wireless broadband potential service in the telecommunication sector and to complete wireless broadband policy which uses 2,3 GHz radio frequency spectrum band, particularly in 2300-2360 MHz radio frequency. This document is a result of study by the ministry of Communication and Information Technology, in order to support the Law, in particular Telecommunication Law, National Long Term Development Plan 2005-2025 Law, Government Regulation (PP) No. 5/2010 about National Middle Term Development Plan 2010 – 2014, PP No. 32/2011 about Indonesia Economic Acceleration and Expansion Development Masterplan 2011-2025, Presidential Instruction (Inpres) No. 11/2011 about the Implementation of ASEAN Economic Society Blue Print Commitment. This White Paper also consider technology advancement for wireless broadband service, inputs from various parties, also reference from several international forum such as ITU, APT, etc.

The main purposes of this policy are:

1.       Adding alternative to pursue ICT Teledensity backwardness and to disseminate services evenly throughout Indonesia within a short time frame.

2.       To drive an affordable internet access rate in Indonesia.

3.       To open manufacture industry awakening opportunity, application and local content.

4.       To create transparent radio frequency spectrum allocation license mechanism by observing economical value of radio frequency spectrum.

To this policy, the government opens a chance for all stakeholders in telecommunication industry to give inputs for perfecting this policy towards the preparation of implementation of wireless broadband service in 2012. As usual, the inputs, correction, and response can be sent by email to gatot_b@postel.go.id and rahman@postel.go.id before 31st of January 2012.

There are some interesting materials in this publicised White Paper concept, as shown by the data below:

1.       On World Bank research, based on econometric analysis, telecommunication service growth (fixed line, cellular, internet and broadband) from 120 poor and developing countries in 1980 to 2006 shows that every 10% increase in broadband penetration will affect to economic development growth as big as 1,38%. This is higher than developed countries which only as much as 1,21%.

2.       Each country has different characteristics, so the approach being used on implementing broadband network is not uniformed. If we seek further from BPS data, in 2009 Indonesia got around 55,159 million households, and 8,6 million fixed line telephone that served household, business and government. It is estimated that 20% of this connection is used for business and government where broadband service is included, though some broadband service cannot be used due to limitation and PSTN network condition. To establish a new cable network, there will be a big problem that the operator will face, such as excavation permit, the number of investment needed, geographical condition, relatively long implementation time, and the market share that spread until rural areas. These problems really affect cable network feasibility that is going to be done. Thus, wireless technology is estimated will be used more dominantly on broadband access for Indonesian people.

3.       Wireless technology is utilizing very limited frequency spectrum. Based on M.2078 ITU-R Report, estimated total spectrum for 2020 is about 1280 MHz (for area with low customer potential) and 1720 (for area with high customer potential). To overcome this limitation, the technology being used needs high efficiency spectrum.

4.       In the early 2000, through WRC-2000 event, ITU identified 2,1 GHz frequency band as core band for IMT 2000 implementation (commonly known as 3G/3rd Generation). Nonetheless, in WRC 2003, ITU also identified 2,6 GHz frequency band as extended band for IMT-2000 service. In the development, 3G and beyond was not stated as IMT-2000 anymore, as did IMT Advance which commonly known as 4G (4th Generation). Both are fairly stated as IMT. In WRC 2007, 2,3 GHz frequency band on 2300-2400 MHz frequency range was declared as frequency band for IMT. IMT technology includes WCDMA, TD SCDMA, CDMA 2000, and OFDMA technology. Through GSM line, IMT-2000 develop to GPRS, EDGE, WCDMA, and HSPA, while LTE and LTE-Advanced is developed by 3GPP (3g Partnership Project). Whilst 3GPP2 develop CDMA, CDMA 1X, CDMA 2000, 1X EV/DV and the eagerness to develop 4G through UMB. However, because of unsuccessful enough, then 3GPP2 collaborate with 3GPP and developing LTE together, where the technical requirement already assigned by 3GPP Release 9. Thus, it hoped that 3GPP Release 9 will have backward compatibility not only with 3GPP access, but also with 3GPP2. 

5.       Here we have broadband development data from other countries as comparison, among others is South Korea, which is the most prominent example, when in 1990s, broadband penetration was only 1%. To intensify broadband penetration, South Korean government launched Cyber Korea 21 which provided IT education for marginalised people, such as housewife, senior citizen, and people with special needs. Along with that, South Korean government also designed various e-government programs, made 24 Billion USD investment for fibre optic backbone network (source: Telecom Regulatory Authority of India (TRAI) December 2010). At this moment, South Korean broadband have made leapfrog over United States of America and other developed countries. In 2010, average internet speed in South Korea reached 12 Mbps, while in 2012 their government decided internet speed in households as big as 1 Gbps. For many countries, South Korea is the best practice that shows strong will of the government to bring broadband access into reality for the people. Besides South Korea, there is also Japan, where the government had issued national broadband plan in 2001, and in March 2010, internet user in Japan reached 94,08 million, where 32,04 million of them were broadband subscriber. The broadband user that access through Fibre to the Home (FTTH) as many as 17,79 million, while 9,74 million through DSL, and the rest through other cable network. For connection through FTTH, average speed starts from 100Mbps to 1Gbps, while through DSL reaches 50 Mbps. In its development, Japan Strategy 2015 set inclusion of digital technology for economic and social development. Scope of the strategy included three priorities: Electronic Government and Electronic Local Government; Healthcare and Health Fields; and Education and Human Resources.

6.       User minimum access speed expectation from 2012 to 2020.

7.       National Middle Term Development Plan 2010 – 2014 (RPJM) target with the parameter in form of percentage of villages that served by telecommunication access, villages that served by internet access, capital of province that connected by fibre optic network, capital of regency/town that connected by broadband, capital of province that has regional and international internet exchange.

8.       Refer to Internet World Stats data, edition Q1 2011, internet penetration in Indonesia is one of the lowest among ASEAN countries (16,1%), even though from the amount of user Indonesia is on number 4 in Asia and number 2 in ASEAN.

9.       IDI (ICT Development Index) Rank in a number of countries.

10.   Internet usage percentage based on accessing location.

11.   Internet usage percentage based on province.

12.   Appeal to wireless broadband providers to better utilize the usage of joint tower for efficiency, remembering the rules on joint tower is clear in its implementation.

In this White Paper concept, it is also mentioned that the government had done first phase wireless broadband tender selection in 2009 to get the winner which further empowered with fixed line network license based on packet switched that uses 2,3 GHz radio frequency band on 2360-2390 MHz frequency range. From 15 zones that was offered in the selection process 2360-2390 MHz frequency range was divided into two blocks, 15MHz each with TDD frequency usage mode. However, some of the winner license has been revoked due to failure to comply after selection obligation in form of upfront fee full payment and first year BHP IPSFR until the deadline, and also at their own request.

Therefore, in order to optimise radio spectrum frequency usage, especially on frequency band that has strategic value, Ministry of Information and Communication Technology has the power to regulate the usage of radio frequency band spectrum through selection mechanism by opening business opportunity to ensure every eligible applicant are having good will to participate in all the selection process truly and responsibly.

In the future, the selection policy on radio frequency spectrum license for wireless broadband service will consider these things:

1.       Broadband penetration speed for high speed internet with affordable price for the people.

2.       Global trend from wireless broadband technology development.

3.       Type of Radio Frequency Spectrum Band license that is set regionally.

4.       Overall, on selection process and after selection a financial security system will be applied, and consist of:

a.       Bid Bond;

b.       Performance Bond; and

c.       Commitment Bond

Government will apply a strict criteria to the selection applicant on prequalification phase so the selection will generate a winner with commitment and responsible with network deployment and also supported by financial background. Those criteria’s are as follows:

1.       Company that has never been imposed to license revocation and/or frequency allocation due to failure in fulfilling commitment in network deployment within a period of 5 years.

2.       Company that has never been imposed to license revocation and/or frequency allocation due to inability to pay off PNBP obligation to Ministry of Communication and Information Technology within a period of 5 years.

3.       Communication providers that have never been litigated in all court with the ministry within a period of 5 years.

4.       Communication providers that are not having a case in all court with the ministry.

The selection participant that cannot fulfil the criteria in the selection process as mentioned above will be cancelled its participation and all the Bid Bond will be disbursed and deposited to the State Treasury. To that participant, there will be no compensation given in any form. Furthermore, for participant that after the temporary winner announcement found included in the criteria but not limited to above clause, therefore the participation status as well as the temporary winner status will be cancelled and all Bid Bond will be disbursed and deposited to State Treasury as PNBP. To that participant, there will be no compensation given in any form. 

Overall, 2300-2360MHz frequency band selection plans are as follows:

1.       Government will opens wireless broadband business opportunity in 2,3 GHz frequency band for the rest of radio frequency spectrum on 2300-2360 MHz range with the TDD usage model along with the same TKDN obligation as 2360-2390 MHz users.

2.       Technology usage in 2300 – 2360 MHz radio frequency spectrum band license selection is based on neutral technology, so that gives discretion for 2,3 GHz wireless broadband providers to choose the technology that are going to be used in order to give the best wireless broadband service to the people.

3.       Neutral technology implementation still oblige 2,3 GHz wireless broadband providers to use telecommunication tools/devices that comply with technical requirement and certified by Ministry of Communication and Information Technology.

4.       As a part of effort to push domestic industry growth, neutral technology implementation still oblige 2,3 GHz wireless broadband providers to fulfil TKDN requirement at least 30% for subscriber station tools/devices and 40% for base station the being used in wireless broadband service. The amount of percentage as mentioned before should increase to 50% in the period of 5 years after selection process.

5.       Considering backbone needs efficiency and coordination easiness, the government will do the selection by wireless broadband zone packaging mechanism. This mechanism will be set in the selection document.

6.       Considering spectrum needs so that providers will be able to compete in serving the people to the needs of data service, and considering network deployment speed in order to deliver the service as fast as possible to the people, therefore selection applicant are required to have license on : Local Fixed Network-Based Packet Switched Operation, and / or; Mobile Cellular Network Operation.

7.       According to plan, selection registration will be opened on May 2012 and ended with winner announcement on August 2012.

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Head of Information and PR Centre, Ministry of Communication and Information Technology (Gatot S. Dewa Broto, HP: 0811898504, Email: gatot_b@postel.go.id , Tel/Fax: 021.3504024).

Source of illustration : http://www.minerva-me.com/pics/4728_solutions_globe.jpg