Overcoming Regulatory Challenges to Build a Successful Future for WiMAX  Arief Hamdani Gunawan Senior Officer – Regulatory...
The Core Business As of June 30, 2009 :
Penetration in Telco Industry As of June 30, 2009 :
The Internet Business As of June 30, 2008 & 2009 (In Rp. Tn):
Outline Update on the issue of WiMAX licenses in Indonesia: Opportunities and challenges Spectrum allocation approaches an...
Regulatory Approach <ul><li>Uses reactive measures to correct undesirable market developments. </li></ul><ul><li>Preferred...
Regulation B E S C H I K K I N G R E G E L I N G Ex post policy Ex ante policy B W A (Broadband Wireless Access) 3.3 GHz a...
Frequency Exclusivity @ WiMAX <ul><li>There are three principal economic justifications for relying on exclusive licenses:...
Outline Update on the issue of WiMAX licenses in Indonesia: Opportunities and challenges Spectrum allocation approaches an...
Spectrum Allocation Approaches  Shared Band Migration FDD - TDD Beauty Contest Biding Zoning Frequency Exclusivity
WiMAX Zone <ul><li>1. North Sumatera </li></ul><ul><li>2. Central Sumatera </li></ul><ul><li>3. South Sumatera </li></ul><...
3.3 GHz Blocks <ul><li>3.3 GHz:  FDD to TDD </li></ul><ul><li>3.4 - 3.6 GHz:  migrate to 3.3 GHz (TDD) </li></ul>8 Blocks ...
3.3 GHz Operators 8 Operators (15 Zone – 12.5  MHz )
2.3 GHz Allocation <ul><li>2300 – 2390 MHz:  bidding, band basis </li></ul><ul><li>2390 – 2400 MHz:  USO, tower/coordinate...
2.3 GHz Operators 1/2 8 Operators (15 Zone – 15 MHz )
2.3 GHz Operators 2/2 8 Operators (15 Zone – 15 MHz )
Outline Update on the issue of WiMAX licenses in Indonesia: Opportunities and challenges Spectrum allocation approaches an...
Regulatory Impact Analysis <ul><li>Regulatory Impact Analysis (RIA) is a policy tool widely used in OECD countries. </li><...
10 Reference Checklist for Regulatory Decision-Making <ul><li>1. Is the problem correctly defined? </li></ul><ul><li>2. Is...
8 Principles of “Good Regulation”  <ul><li>(i) serve clearly identified policy goals, and be effective in achieving those ...
Modern License Development Commitment (annually, cumulative)
Outline Update on the issue of WiMAX licenses in Indonesia: Opportunities and challenges Spectrum allocation approaches an...
Availability of the Frequency Bands Harmonized development of many radiocommunication services Their efficient and interfe...
Availability of the Frequency Bands Rules for assignment and use of frequencies (AR S4) Allocation of  frequencies (AR S5)...
Availability of the Frequency Bands Sub- regional National Sub- regional Sub- regional National National Regional allocati...
Closing: Telco Industry - Environment Overview Highlights on Telco Industry in Indonesia :
Thank You Arief Hamdani Gunawan [email_address]
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Overcoming Regulatory Challenges to Build a Successful Future for WiMAX

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  • X1=95; X2=95,10; Y1=6.10;Y2=6.20
  • 1. Is the problem correctly defined? The problem to be solved should be precisely stated, giving evidence of its nature and magnitude, and explaining why it has arisen (identifying the incentives of affected entities). 2. Is government action justified? Government intervention should be based on explicit evidence that government action is justified, given the nature of the problem, the likely benefits and costs of action (based on a realistic assessment of government effectiveness), and alternative mechanisms for addressing the problem. 3. Is regulation the best form of government action? Regulators should carry out, early in the regulatory process, an informed comparison of a variety of regulatory and non-regulatory policy instruments, considering relevant issues such as costs, benefits, distributional effects and administrative requirements. 4. Is there a legal basis for regulation? Regulatory processes should be structured so that all regulatory decisions rigorously respect the “rule of law”; that is, responsibility should be explicit for ensuring that all regulations are authorised by higher-level regulations and consistent with treaty obligations, and comply with relevant legal principles such as certainty, proportionality and applicable procedural requirements. 5. What is the appropriate level (or levels) of government for this action? Regulators should choose the most appropriate level of government to take action, or if multiple levels are involved, should design effective systems of co-ordination between levels of government. 6. Do the benefits of regulation justify the costs? Regulators should estimate the total expected costs and benefits of each regulatory proposal and of feasible alternatives, and should make the estimates available in accessible format to decision-makers. The costs of government action should be justified by its benefits before action is taken. 7. Is the distribution of effects across society transparent? To the extent that distributive and equity values are affected by government intervention, regulators should make transparent the distribution of regulatory costs and benefits across social groups. 8. Is the regulation clear, consistent, comprehensible and accessible to users? Regulators should assess whether rules will be understood by likely users, and to that end should take steps to ensure that the text and structure of rules are as clear as possible. 9. Have all interested parties had the opportunity to present their views? Regulations should be developed in an open and transparent fashion, with appropriate procedures for effective and timely input from interested parties such as affected businesses and trade unions, other interest groups, or other levels of government. 10. How will compliance be achieved? Regulators should assess the incentives and institutions through which the regulation will take effect, and should design responsive implementation strategies that make the best use of them.
  • Establish principles of “good regulation”, drawing on the 1995 OECD Recommendation on Improving the Quality of Government Regulation. Good regulation should: serve clearly identified policy goals, and be effective in achieving those goals; have a sound legal and empirical basis; produce benefits that justify costs, considering the distribution of effects across society and taking economic, environmental and social effects into account; minimise costs and market distortions; promote innovation through market incentives and goal-based approaches; be clear, simple, and practical for users; be consistent with other regulations and policies; and (viii) be compatible as far as possible with competition, trade and investment-facilitating principles at domestic and international levels.
  • Availability of the Frequency Bands RR S4.2: “ Members undertake that in assigning frequencies to stations which are capable of causing harmful interference to the services rendered by the stations of another country, such assignments are to be made in accordance with the Table of Frequency Allocations and other provisions of the Radio Regulations.&amp;quot; Article S5 of the Radio Regulations : basic condition and starting point in the selection of the appropriate frequency band.
  • Allocation of Frequency Bands worldwide allocations regional allocations (for the purpose of the allocation of frequencies the world has been divided into three Regions) sub-regional allocations and national allocations. worldwide character of the international aeronautical and maritime mobile services tendency of having worldwide allocations governed by provisions of the Radio Regulations which are generally applicable all over the world
  • Transcript of "Overcoming Regulatory Challenges to Build a Successful Future for WiMAX"

    1. 1. Overcoming Regulatory Challenges to Build a Successful Future for WiMAX Arief Hamdani Gunawan Senior Officer – Regulatory Management TELKOM INDONESIA
    2. 2. The Core Business As of June 30, 2009 :
    3. 3. Penetration in Telco Industry As of June 30, 2009 :
    4. 4. The Internet Business As of June 30, 2008 & 2009 (In Rp. Tn):
    5. 5. Outline Update on the issue of WiMAX licenses in Indonesia: Opportunities and challenges Spectrum allocation approaches and implications for WiMAX operator Role of regulators in creating a level playing field for WiMAX Towards regulatory harmonization Why is this important?
    6. 6. Regulatory Approach <ul><li>Uses reactive measures to correct undesirable market developments. </li></ul><ul><li>Preferred where: </li></ul><ul><ul><li>markets are already competitive and in little risk of domination by one or more players; </li></ul></ul><ul><ul><li>markets are in an emergent condition, are not in danger of being dominated by one or more players, but could be distorted by overzealous regulation </li></ul></ul><ul><li>Relies on proactive regulation to prevent undesirable market developments. </li></ul><ul><li>Preferred where: </li></ul><ul><ul><li>markets are newly liberalized; </li></ul></ul><ul><ul><li>markets are at risk of domination by one or more players </li></ul></ul><ul><ul><li>key regulatory, economic, social or policy objectives cannot be fulfilled by less </li></ul></ul>Ex – Post and Ex – Ante
    7. 7. Regulation B E S C H I K K I N G R E G E L I N G Ex post policy Ex ante policy B W A (Broadband Wireless Access) 3.3 GHz allocation (migration) 2.3 GHz allocation 3.3 GHz implementation 2.3 GHz implementation Bidding
    8. 8. Frequency Exclusivity @ WiMAX <ul><li>There are three principal economic justifications for relying on exclusive licenses: </li></ul><ul><li>Spectrum scarcity : views spectrum as an economic good and focuses on the role of markets in allocating that good. </li></ul><ul><li>Investment incentives : focuses on the need to provide users and providers with appropriate incentives to invest in network equipment and services. </li></ul><ul><li>Interference management : recognizes that even when spectrum is not “scarce,” it may be necessary to coordinate user behavior to allow users to share spectrum without adversely impacting or “interfering” with each other. </li></ul>Investment incentives Interference management Spectrum scarcity
    9. 9. Outline Update on the issue of WiMAX licenses in Indonesia: Opportunities and challenges Spectrum allocation approaches and implications for WiMAX operator Role of regulators in creating a level playing field for WiMAX Towards regulatory harmonization Why is this important?
    10. 10. Spectrum Allocation Approaches Shared Band Migration FDD - TDD Beauty Contest Biding Zoning Frequency Exclusivity
    11. 11. WiMAX Zone <ul><li>1. North Sumatera </li></ul><ul><li>2. Central Sumatera </li></ul><ul><li>3. South Sumatera </li></ul><ul><li>4. Banten & Jabotabek </li></ul><ul><li>(Jakarta, Bogor Tangerang, Bekasi) </li></ul><ul><li>5. West Java </li></ul><ul><li>6. Central Java </li></ul><ul><li>7. East Java </li></ul>8. Bali & Nusa Tenggara 9. Papua 10. Maluku & North Maluku 11. South Sulawesi 12. North Sulawesi 13. West Kalimantan 14. East Kalimantan 15. Riau Islands 2.3 GHz and 3.3 GHz Shared Band Migration FDD - TDD Beauty Contest Biding Zoning Frequency Exclusivity
    12. 12. 3.3 GHz Blocks <ul><li>3.3 GHz: FDD to TDD </li></ul><ul><li>3.4 - 3.6 GHz: migrate to 3.3 GHz (TDD) </li></ul>8 Blocks – 12.5 MHz Shared Band Migration FDD - TDD Beauty Contest Biding Zoning Frequency Exclusivity
    13. 13. 3.3 GHz Operators 8 Operators (15 Zone – 12.5 MHz )
    14. 14. 2.3 GHz Allocation <ul><li>2300 – 2390 MHz: bidding, band basis </li></ul><ul><li>2390 – 2400 MHz: USO, tower/coordinate basis </li></ul>3 from 15 Blocks – 15 and 10 MHz Shared Band Migration FDD - TDD Beauty Contest Biding Zoning Frequency Exclusivity
    15. 15. 2.3 GHz Operators 1/2 8 Operators (15 Zone – 15 MHz )
    16. 16. 2.3 GHz Operators 2/2 8 Operators (15 Zone – 15 MHz )
    17. 17. Outline Update on the issue of WiMAX licenses in Indonesia: Opportunities and challenges Spectrum allocation approaches and implications for WiMAX operator Role of regulators in creating a level playing field for WiMAX Towards regulatory harmonization Why is this important?
    18. 18. Regulatory Impact Analysis <ul><li>Regulatory Impact Analysis (RIA) is a policy tool widely used in OECD countries. </li></ul><ul><li>RIA examines and measures the likely benefits, costs and effects of new or changed regulations. </li></ul><ul><li>Tools: </li></ul><ul><ul><li>Reference Checklist for Regulatory Decision-Making </li></ul></ul><ul><ul><li>Principles of “Good Regulation” </li></ul></ul>
    19. 19. 10 Reference Checklist for Regulatory Decision-Making <ul><li>1. Is the problem correctly defined? </li></ul><ul><li>2. Is government action justified? </li></ul><ul><li>3. Is regulation the best form of government action? </li></ul><ul><li>4. Is there a legal basis for regulation? </li></ul><ul><li>5. What is the appropriate level (or levels) of government for this action? </li></ul><ul><li>6. Do the benefits of regulation justify the costs? </li></ul><ul><li>7. Is the distribution of effects across society transparent? </li></ul><ul><li>8. Is the regulation clear, consistent, comprehensible and accessible to users? </li></ul><ul><li>9. Have all interested parties had the opportunity to present their views? </li></ul><ul><li>10. How will compliance be achieved? </li></ul>
    20. 20. 8 Principles of “Good Regulation” <ul><li>(i) serve clearly identified policy goals, and be effective in achieving those goals; </li></ul><ul><li>(ii) have a sound legal and empirical basis; </li></ul><ul><li>(iii) produce benefits that justify costs, considering the distribution of effects across society and taking economic, environmental and social effects into account; </li></ul><ul><li>(iv) minimise costs and market distortions; </li></ul><ul><li>(v) promote innovation through market incentives and goal-based approaches; </li></ul><ul><li>(vi) be clear, simple, and practical for users; </li></ul><ul><li>(vii) be consistent with other regulations and policies; and </li></ul><ul><li>(viii) be compatible as far as possible with competition, trade and investment-facilitating principles at domestic and international levels. </li></ul>
    21. 21. Modern License Development Commitment (annually, cumulative)
    22. 22. Outline Update on the issue of WiMAX licenses in Indonesia: Opportunities and challenges Spectrum allocation approaches and implications for WiMAX operator Role of regulators in creating a level playing field for WiMAX Towards regulatory harmonization Why is this important?
    23. 23. Availability of the Frequency Bands Harmonized development of many radiocommunication services Their efficient and interference-free operation General rules for the assignment and use of frequencies as well as some special rules (Article S4). <ul><li>Regulators should try to allocate spectrum that is in harmony with international spectrum allocations. </li></ul><ul><li>The use of a single band for the same service across multiple countries can create economies of scale in the production of wireless end-user equipment. This in turn can lower the cost of broadband-capable devices, thereby increasing the demand for broadband services and making them more accessible to a wider base of consumers. </li></ul><ul><li>Global harmonization can also facilitate international roaming, which can increase the productivity of workers who use broadband devices when traveling around the world. </li></ul><ul><li>The Business of WiMAX by Deepak Pareek page 266 </li></ul>
    24. 24. Availability of the Frequency Bands Rules for assignment and use of frequencies (AR S4) Allocation of frequencies (AR S5) Special rules and specific provisions (AR S46 to S58) Notification and use of frequency assignments Efficient and interference-free operation Radio Regulations Administration
    25. 25. Availability of the Frequency Bands Sub- regional National Sub- regional Sub- regional National National Regional allocations Regional allocations Regional allocations Worldwide allocations Article S5 Frequency allocations
    26. 26. Closing: Telco Industry - Environment Overview Highlights on Telco Industry in Indonesia :
    27. 27. Thank You Arief Hamdani Gunawan [email_address]

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