mobile broadband policy in indonesia: implementation challenges ministry of communication and...
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MOBILE BROADBAND POLICY IN INDONESIA: IMPLEMENTATION CHALLENGES
Ministry of Communication and Information Technology (Kominfo)Republic of Indonesia
Broadband WorkshopPretoria, South Africa, 11-12 November 2013
Outline
Indonesia ICT Statistics
National Broadband Plan
Target and action plan
Implementation: Spectrum refarming Cases of 2100 MHz, 700 MHz and 1800 MHz
National Submarine Backbone Project
Conclusions
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Indonesia: A Brief Overview
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Telephone lines per 100 inhabitants
15.52 7.94
Mobile subscribers per 100 inhabitants
115.2 134.80
Percentage of individuals using Internet
15.36 41.00
Fixe-wired broadband subs. per 100 inhabitants
1.22 2.18
Percentage of household with computer
15.1 21.5
Population (millions) 237.4 52.9
Surface Area (thousand km2) 1,904.5 1,221.0
GDP (PPP) per capita (USD) 5,182 11,525
Human Development Index (HDI) 0.629 0.629
GDP growth (annual %) 6.2 2.5
INDONESIA SOUTH AFRICA
Source: ITU statistics (2012) & Wikipedia
Population is unevenly distributed, 55% of population lives in Java island (7% of total area).
Services Unit 2004 2009 2010 2014 *
1. Telephone
Fixed Line Unit 8,703,218 8,423,973 8,429,180 8,429,180
Mobile Line Unit 32,009,688 190,062,615 200,636,587 222,853,663
Total Line Unit 40,712,906 198,486,588 209,065,767 307,145,463
Teledensity Per 100 inhabitants 18,82 86,06 89,79 100
2. Internet
Subscriber Person 1.087,428 2,000,000 2,700,000 7,000,000
User Person 11,226,143 30,000,000 45,000,000 130,000,000
3. Broadband
Subscriber Person 84,900 4,520,000 7,290,000 17,000,000
*) Prediction
Source: Mastel, Kominfo dan Bappenas 4
Indonesia will depend on mobile broadband
Indonesia ICT Statistics
MOBILE BROADBAND COVERAGE (90% BROADBAND)
Source: MCIT (Kominfo) Statistics 2009
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2013
Infrastructure
Fixed broadband : 15% households (1Mbps) , 30% buildings (100 Mbps), and 5%
population;
Mobile broadband : 12% population (512 kbps)
Infrastructure (minimum)
Fixed broadband : 40-75% households (2Mbps), 50%-80% buildings (1 Gbps), dan
25% population;
Mobile broadband : 75% population (1 Mbps)
2017
Utilization / Adoption Priority:e-Government; e-learning; e-health; e-logistics, e-procurement
NATIONAL BROADBAND PLAN: TARGET 2013 - 2017
Implementation Strategy
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REGULATION INFRASTRUCTUREPOLICY
Transitional regulation (short-term)Market review and analysis – competition, license, tariffs etc.Regulation on spectrum and backbone
Improving broadband accessDevelopment of backbone, core network dan internasional linkReduce the dependency on international link.
USO / ICT Fund for ecosystem development
Broadband Plan Review (strategy, target, goals, stakeholders etc.)
STRATEGY
Market driven Community involvement &
ownership Universal access
Affordability Leadership
Principles:
Target and Action Plan (Capacity)
Speed 2013 2014 2015 2016 2017
Fixed Houseld 1 Mbps 1 Mbps 2 Mbps 2 Mbps 2 Mbps
Building 100 Mbps 200 Mbps 500 Mbps 800 Gbps 1 Gbps
Mobile 512 kbps 512 kbps 512 kbps 1 Mbps 1 Mbps
Ministry of
Kominfo
Regulation on standards and quality of broadband
Regulation on standards and quality of broadband
Regulation on standards and quality of broadband
Regulation on standards and quality of broadband
Regulation on standards and quality of broadband
Ministry of
Finance
Incentive and capital
Incentive and capital
Incentive and capital
Incentive and capital
Incentive and capital
Telecom
Operators
To provide networks and quality of services
To provide networks and quality of services
To provide networks and quality of services
To provide networks and quality of services
To provide networks and quality of services
Local
government
To provide right of way (ROW)
To provide right of way (ROW)
To provide right of way (ROW)
To provide right of way (ROW)
To provide right of way (ROW)
CommunityQuality monitoring Quality monitoring Quality monitoring Quality monitoring Quality monitoring
VendorTo provide devices and systems
To provide devices and systems
To provide devices and systems
To provide devices and systems
To provide devices and systems
Fixed and Mobile Target Source: Indonesia Broadband Plan (2013)
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2013 2014 2015 2016 2017
Fixed 45% 55% 75% 85% 100%
Mobile Broadband
70% 80% 90% 100% 100%
Ministry of Kominfo
To create regulation for broadband dissemination
To encourage operators to expand networks
To encourage operators to expand networks
To encourage operators to expand networks
To encourage operators to expand networks
Ministry of Finance Incentive and
capital Incentive and capital Incentive and capital Incentive and capital Incentive and capital
OperatorTo provide networks
To provide networks To provide networks To provide networks To provide networks
Local government To provide right of
way (RoW)To provide right of way (RoW)
To provide right of way (RoW)
To provide right of way (RoW)
To provide right of way (RoW)
People - Captive market- Supervisory of
Quality of Service
- Captive market- Supervisory of
Quality of Service
- Captive market- Supervisory of Quality
of Service
- Captive market- Supervisory of
Quality of Service
- Captive market- Supervisory of Quality
of Service
VendorTo provide devices and systems
To provide devices and systems
To provide devices and systems
To provide devices and systems
To provide devices and systems
Access Target
Target and Action Plan (Coverage)
Source: Indonesia Broadband Plan (2013)
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2013 2014 2015 2016 2017
Fixed 40% 50% 75% 85% 100% (517 district or municipalities)
City or regency connected to backbone
75% 80% 100% 100%
Ministry of Kominfo
To create regulation for broadband dissemination
To encourage operators to develop backbone network to regency level
To regulate tariff which encourages community to use broadband services
To encourage operator to expand backbone coverage
To ensure all city and regencies accessed by optical backbone
Ministry of Finance Incentive and capital
Incentive and capital Incentive and capital Incentive and capital Incentive and capital
OperatorTo provide networks To provide networks To provide networks To provide networks To provide networks
Local government To provide right of way
(RoW)To provide right of way (RoW)
To provide right of way (RoW)
To provide right of way (RoW)
To provide right of way (RoW)
People - Captive market- To allow right of way
(RoW) and land acquisition/ usages
- Captive market- To allow right of way
(RoW) and land acquisition/ usages
- Captive market- To allow right of way
(RoW) and land acquisition/ usages
- Captive market- To allow right of way
(RoW) and land acquisition/ usages
- Captive market- To allow right of way
(RoW) and land acquisition/ usages
VendorTo provide devices and systems
To provide devices and systems
To provide devices and systems
To provide devices and systems
To provide devices and systems
Target and Action Plan (Backbone Access)
Backbone Target (City and Regency) Source: Indonesia Broadband Plan (2013)
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Implementation Strategy through Spectrum Policy
Mobile Broadband: Spectrum Issues
Traffic is growing exponentially (Ipad, Iphone, tablet, android, etc.)
Demand of mobile broadband spectrum: ITU-R Report M.2078, the world would require 1,280 – 1,700
MHz bandwidth in year 2020 Some countries prioritized to acquire more bandwidth
Band < 1 GHz (best for capacity and coverage)
Band > 1 GHz (best for main business or economic development areas), including WiFi off-loading
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Mobile Broadband: Business Issues
The growth of data has increased rapidly but the voice declined.
Cellular operators around the world has experienced the decrease of revenue growth.
Scissore Effct Scissor Effect
Flexibility of License become a key issue (time to market, regulatory cost): Spectrum Sharing, MVNO, flexible use of spectrum.
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Current IMT-Band in Indonesia(Existing and Future Potential)
Band Bandwidth Current Use
450 – 470 MHz 2 x 7.5 MHz Mobile Cellular (CDMA)
694 – 820 MHz 2 x 45 MHzAnalog TV (Potential of Digital Dividend LTE 700 MHz)
825 – 845 dan870 – 890 MHz
2 x 20 MHz FWA and Mobile Cellular (CDMA)
890 – 915 dan935 – 960 MHz
2 x 25 MHz Mobile Cellular (GSM)
1710 – 1785 dan1805 – 1880 MHz
2 x 75 MHz Mobile Cellular (GSM)
1903.125 – 1910 dan 1983.125 – 1990 MHz
2 x 8.675 MHz Mobile Cellular (PCS-1900/CDMA)
1920 – 1980 dan2110 – 2170 MHz
2 x 60 MHz Mobile Cellular (UMTS)
2300 – 2390 MHz 90 MHzBroadband Wireless Access. 2360 – 2390 MHz licensed issued for 15 Regional Zones (Wimax / LTE TDD)
2500 – 2690 MHz2 x 15 MHz BWA (TDD)
150 MHz2520 – 2670 MHz is currently used by Broadcasting Satellite Services
14Total = 552.35 MHz
Spectrum refarming: Case of Indonesia
Service level:
- refarming process
Fixed Mobile
Applications level:
P-P links PMP links PMR Cellular
Technical level (1) :
2G 3G
12.5 kHz25 kHzDigitalAnalogue
Freq BFreq ATechnical level (2) :
Change of allocation plan
Change of band plan
Change of channelling plan15
Current PMR 400 MHz (analog to digital)
Future 800 MHz rearrangement
Current 2100 MHz
Current BWA 2300 MHz
Spectrum Refarming Strategy
Short-term: Refarming 450 MHz, 850 MHz, 900 MHz, 1800 MHz, 2.1 GHz dan 2.3 GHz.
Mid-term: Digital Dividend 700 MHz, extended 850 MHz (Trunking Band), 2.6 GHz, 3.5 GHz, and other bands identified by ITU IMT band
Unlicensed (Class Licensed) Band : 2.4 GHz, 5.1 GHz, 5.8 GHz, 26 GHz, 60 GHz, for traffic off-loading.
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Criteria: government direction, priority, refarming complexity, business need and international regulation.
To reach the targets of national broadband plan:
1920MHz (UL) 1980 MHz (DL)
HCPT HCPTAxis Axis Tsel Tsel Isat Isat XL XL Blank BlankNew(Tsel)
New(XL)
1 2 3 4 5 6 7 8 9 10 11 12
Objectives: Contiguous band and level of competition
Benefits: optimal uses of bandwidth with less guard band, lower number of base tranceiver station (BTS).
Implementation: 2013 (completed within 6 months), except merger between two operators.
Short-term Strategy: 2100 MHz Rearrangement
Isat
1920MHz (UL) 1980 MHz (UL)
IsatHCPT Tsel Tsel XL XL Blank Blank
1 4 5 9 10AxisHCPT
2 6
Axis Isat
7
Tsel XL
3 8 11 12Axis
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merger
2110 MHz (DL) 2170 MHz (DL)
2110 MHz (DL) 2170 MHz (DL)
before
after
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192 MHz
Analog TVFree To Air (FTA)
478 806 MHz328 MHz
112 MHz
DIGITALIZATION OF BROADCASTING PROCESS
TV ANALOG
Digital Terestrial TVFree To Air (FTA)
526 694
Future DTV
DIGITAL DIVIDEND
478 806 MHz
TV DIGITAL ERA
• LTE 700 MHz is beneficial to accelerate Broadband particularly in rural areas with the existing BTS
• It can be implemented after the completion of digital switchover end of 2017
Mid-term Strategy: Digital Dividend 700 MHz
Analog Switch-Off (ASO), 1 Jan 2018
Mid-Term Strategy: Refarming GSM 1800 MHz
UPLINK
DOWNLINK
Evolution: GSM/EDGE, UMTS, HSPA, HSPA+, LTELTE is most effective if the Bandwidth is more than 20 MHz
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Best spectrum for LTE in terms of coverage and ecosystem, the most bands owned by operators are not contiguous. Complexity is high as 70% of handset is GSM 2G .
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National Backbone Project
Total undersea cables 35,280 km; Total underground cables 21,807 km
First stage: Total installation> 10,000 km; Total cost: USD 300 millions
Conclusions Indonesia has developed national broadband plan but strong
commitment and collaboration are needed for the successful implementation.
From year 2013 to 2017, the target for national broadband infrastructure has been set which include strategy, coverage, capacity, and the roles of stakeholders.
In terms of implementation, broadband infrastructure development in Indonesia has currently focused on spectrum refarming of mobile broadband to reach targeted coverage and capacity.
To meet the growing demand of spectrum, government should identify candidate bands for mobile broadband and find the best spectrum policy and strategy to acquire and to refarm the band.
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