Abstract—The development and rollout of WiMAX introduces several regulatory and policy issues. This paper highlights the WiMAX Regulation in South Korea, as a country that is already more mature and had become the first to implement Wireless Broadband Access (WBA) of its kind (WiBro) in the world, and Indonesia, as a country that is still in the process of formulating the reconcilable regulation. The paper begins with a brief overview of the technologies behind WiMAX and compared the market situation relative to broadband and 3G mobile networks. Next, the paper examines the potentially significant specific policy and regulatory issues for regulator in each country and competition climate between stockholders. Finally, this data was used to obtain recommendations to overcome the said problems. We found out that WiMAX may prove to be a disruptive technology for existing telecommunication and Internet sector, but careful policy effectuation can ensure that the disruption could create the maximum benefit possible in the society and market.
---
Please contact trough lailiaidi at gmail.com for download request
Analysis of WiMAX regulation in South Korea and Indonesia
1. 1
Analysis of WiMAX Regulation
In South Korea and Indonesia
Laili Aidi Jung Changsu
School of Information and Communication Technology KTH, Stockholm, Sweden 16453
{aidi, changsu}@kth.se
Abstract—The development and rollout of WiMAX introduces
several regulatory and policy issues. This paper highlights the
WiMAX Regulation in South Korea, as a country that is already more
mature and had become the first to implement Wireless Broadband
Access (WBA) of its kind (WiBro) in the world, and Indonesia, as a
country that is still in the process of formulating the reconcilable
regulation. The paper begins with a brief overview of the technologies
behind WiMAX and compared the market situation relative to
broadband and 3G mobile networks. Next, the paper examines the
potentially significant specific policy and regulatory issues for
regulator in each country and competition climate between
stockholders. Finally, this data was used to obtain recommendations to Figure 1. The comparison between WiBro and WiMAX [42]
overcome the said problems. We found out that WiMAX may prove to
be a disruptive technology for existing telecommunication and Internet
sector, but careful policy effectuation can ensure that the disruption II. MARKET ANALYSIS
could create the maximum benefit possible in the society and market.
A. South Korea
Index Terms—Regulators, WiMAX, Policy, Internet After starting commercial services in 1994, the Internet
subscribers have increased gradually every year. Now, the
I. INTRODUCTION number of the broadband population is approximately
Worldwide Interoperability for Microwave Access 39,440,000 and it comprises 81% of Korean people in June of
W (WiMAX) provides fixed and mobile Internet access up
to 40Mbit/s [1]. Fixed WiMAX is based on the IEEE
2010 [4]. Therefore, the Internet market is already saturated so
Service Providers introduces combined services to increase
802.16-2004 and Mobile WiMAX is based on 802.16e their profit with IPTV, Internet phone and cable TV.
amendment to support mobility [2]. Since the introduction of smart phones in 2009, the
WiBro (Wireless Broadband) is a service name in South popularity of the phones was explosive among younger who are
Korea and a standard of IEEE 802.16e (mobile WiMAX) and it heavy users of the Internet. According to a survey, the number
was devised to support mobility to broadband Internet access of smart phone users was increased from 2.6% in 2009 to 5.7%
[3]. There is no big difference in the core technology between among cellular phone users in 2010. With this growth, the
WiMAX and WiBro but the origins were different from each usage of Wi-Fi networks was also risen by two times in 2010.
other. WiMAX was progressed from wireless LAN but WiBro The majority of smart phone users are 20s and 30s and almost
was started from mobile communication network so it could 99% of the users accessed to the mobile Internet service
support mobility at first. However, WiMAX was also through 3G and Wi-Fi networks [5]. With this result, the
progressed to support mobility in mobile WiMAX later. capacity of Wi-Fi and 3G networks reached the limit last year.
Hence, Service Providers are installing a lot of Wi-Fi
equipments in big cities and the public places to satisfy smart
phone users and also they have a plan to upgrade 3G networks
to LTE sooner or later.
B. Indonesia
Manuscript received May. 11, 2011.
This work was done while Authors were master student of Communication Kementrian Komunikasi dan Informatika (Ministry of
Systems, at KTH Royal Institute Of Technology. Both Authors shared and Communication and Information) as Indonesia‟s Telecoms
contribute in each of all the part of this report. Laili Aidi focused on issues of
Indonesia, while Jung Changsu focused on issues of South Korea.
Regulator has been made straight forward to implement
The work was submitted to Anders Comstedt as assignment of IK2214 broadband technology and targeting 50 million broadband
Telecom Policies and Regulatory Principles course. The authors are solely users in 2015 to push Internet literacy in remote areas in order
responsible for the contents of this work
2. 2
to boost domestic economy, enhance the country‟s ICT cost of multimedia service through CDMA network. WiBro
development index (IDI) and Internet Service Excellence [15]. was developed by Samsung and Electronics and
Indonesia is ranked at number 107 from total 159 surveyed Telecommunications Research Institute (ETRI) in 2004 for the
countries in terms of Internet Development Index (IDE) [10], first time in the world and introduced in June of 2006 [6].
number 40 from a total of 170 countries worldwide in terms of According to the statistics in Figure 2, the number of WiBro
Internet service excellence [11], and also classified among subscribers was approximately 455,000 in 2010 and there was a
other 120 countries as the country with Low Internet slight increase from 2006 to 2011. With this slight growth of
Penetration (less than 23.8 %). It currently has around 242.968 subscribers, Korean government is trying to extend WiBro
million people (world‟s 4th most populous country) with GDP service areas across the country. So far, the service areas are
US$2.858 [9]. In March 2011, there were approximately only for big cities. Moreover, the government hopes this service
around 34,850 million Internet users [12], represented only to be popular among people because Korean companies and a
around 14.3 % of the population. government organization developed this technology so Koreans
However, Broadband Internet services are still in their do not need to pay a lot of royalties contrary to CDMA
infancy in Indonesia. There are problems in inferior technology. Due to these reasons, the government struggles to
telecommunications infrastructure, which will likely to spread this service with some good suggestions to Service
continue to impede Internet growth. The country's Broadband Providers.
Internet access penetration, although certainly on the increase,
was still in the very early stages of development and remained
low (0.1% penetration). There was only 1 broadband
service/1000 population, by the end-2006 [13]. In 2009, there
were approximately only 8.5 million personal computers, and
among that number, only 256.500 people got access to
broadband service or around 0.1 % of the population [9, 14].
Among this number, Telkom, the Government
Telecommunications Company, occupy more than half of this
market as it has 150,000 high-speed Internet customers [9].
In contrast, Indonesia is in the list of the biggest mobile
Internet users in the world (6th largest mobile cellular user) Figure 2. The number of WiBro subscribers in Korea [43]
[16]. Currently, Its mobile market had passed 80 % penetration
rate, as 180 million people have a subscription for a mobile 1. The government policies
phone [32], up from just 65 million subscribers just 4 years ago In 2008, KCC (Korea Communications Commission) decided
(2007) [16]. The mobile market is currently dominated by 3 to use the mobile subscription number, 010 and support voice
mobile GSM-based operators: Telkomsel, Indosat and XL call with WiBro. It means that WiBro users can send and
Axiata, that together occupy 85 % of this country's mobile receive voice calls with their devices. Moreover, this
connections [17]. With this number, around 100 million is
commission made a policy for Service Providers not to pay for
occupied by Telkomsel, a subsidiary company of Telkom, that
the WiBro frequency until 2012 [6].
makes it as 7th largest operator in the world based on
subscribers [17, 18]. In March 31, 2011, there were 34,850
million active Facebook users (14,3 % penetration rate), made 2. The deregulation of combined-service regulation
it as the country with the fastest growing Facebook users and The weak point of WiBro is the short distance of service
the 2nd largest in the world [12, 45]. coverage and unsupported voice service but these problems can
The country‟s mobile penetration had quickly moved and be prevailed over by a combined service with CDMA mobile
this number still has a considerable potential remaining for network. Korean government realized the importance of
further growth [13]. It can be seen that after more than 6 combined services to widen the usage of WiBro. Hence, the
straight years of strong growth, the annual increase in the government allowed Service Providers to cut the price and give
number of Indonesia‟s mobile subscriber was still running at
additional service such as WiBro plus 3G to boost the number
over 30 % and is predicted will reach 197 million in Q3 [13, 17].
of subscribers. In addition, if customers use WiBro service for a
Thus, there are considerations of enormous potential of online
market. certain period, they can receive free laptops embedded with
WiBro devices [6].
III. WIMAX REGULATION
3. The expansion of service coverage
A. South Korea
Until 2007, WiBro was serviced in Seoul and a few satellite
WiBro was designed for supporting mobile high-speed data
cities and Service Providers constructed their infrastructures to
communication and this service was installed under the
expand service areas to downtown of 23 cities. Moreover,
previous CDMA mobile network infrastructure. The
background purpose of this technology was to reduce the high
3. 3
government encouraged Service Providers to expand their
WiMAX Indonesia
service areas to other cities continuously [6].
10 Maluku Province & Telkom, Rahjasa Media
B. Indonesia Northern Maluk Internet on behalf of
WiMAX Indonesia
WiMAX is believed as a technology that will be flexible to
reach wide users rather than the current optical fiber
11 Southern Sulawesi Berca Hardayaperkasa
cable-based services [15]. This is an important aspect in
Indonesia since many citizens live in rural areas that cannot be 12 Northern Sulawesi Telkom, Jasnita
reached by optical cable due to its location in remote areas Telekomindo
and/or in a difficult position. It is proposed so the Internet
penetration can reach a wide range of area, affordable and 13 Western Sulawesi Berca Hardayaperkasa
develops the domestic industry [19].
14 Eastern Sulawesi Berca Hardayaperkasa
1. License Auction
Indonesia‟s Telecoms Regulator choose unpopular ways in its 15 Riau Archipelago / Berca Hardayaperkasa,
WiMAX implementation as they only allowed the Batam & Bintan Rahjasa Media Internet on
implementation of Fixed WiMAX technology, based on Island behalf of WiMAX Indonesia
regulation that was launched in 2008 (Kep Dirjen Postel No. 94,
95, 96) and 2009 (Kep Dirjen Postel No. 209, 210, 211) [11, 20,
Later, 3 of these selected companies then should lose their
21]. The Regulator opened the tender for this Fixed WiMAX in
license due to the late payments [22]. Thus, only 5 companies
frequency band 2,3 GHz, in 2007, which is based on standard still hold the license, which are: Telkom, Indosat Mega Media,
used for Mobile WiMAX [22]. The 2.3 GHz consists of 2 First Media, Berca Hardayaperkasa, Jasnita Telekomindo.
blocks radio frequency with 15 MHz each at 2360 – 2375 MHz
(13th block) and at 2375 – 2390 MHz (14th block) to deploy in 2. Investment Policy
15 zones nationwide. But only after the process that range from In order to deliver the WiMAX service within the country, the
14 July 2004 to 16 July 2009, they successfully got 8 from a Regulator mentioned that the Service Providers should partner
total of 21 applicants who won the license, which was the with local Vendor [25]. There are currently 11 local WiMAX
auction based on zone [23, 24]. chipset and device vendor in Indonesia [22, 25]. Moreover, in
order to get the certification, these Vendors must follow the rule
Table 1. Auction Result [18][24] of Tingkat Kandungan Dalam Negeri / TKDN (Standard Local
Zone Area Service Provider Content), which requires them to use 30% for CPE (customer
premises Equipment) and 40 % for Base Station from domestic
1 Northern Sumatra First Media, Berca components [15, 30].
Hardayaperkasa This policy and decision to only operate WiMAX in limited
operation (Fixed WiMAX) was confirmed due to the several
2 Central Sumatra Berca Hardayaperkasa factors:
a. Telecommunications sector capital expenditure in
3 Southern Sumatra Berca Hardayaperkasa Indonesia has reached 44 billion IDR in 2006, but the
domestic industry only contributes 3 % from that amount
4 Banten Province, First Media, Intermux [15]. Thus Indonesia‟s telecommunication industries just as
Jabodetabek (Greater economy consumption rather than economy production as
Jakarta) most of Operators spending (CAPEX) going to foreign
Vendors.
5 Jawa Barat Province, Comtronic, Indosat Mega b. Services Provider‟s growth has not created any benefit to
minus Bogor, Media local manufacture, thus the implementation of WiMAX is a
Tangerang and Bekasi momentum to promote local manufacture industries so they
will be able to play as the main actor in telecommunication
6 Central Java Telkom and Internet service in Indonesia, as government argue that
local industry still dominantly produce 16d chip-set [15,
7 Eastern Java Comtronic, Telkom
25].
Thus, since couple years back, there have been concerns
8 Bali Province, Nusa Berca Hardayaperkasa
regarding the Indonesia‟s investor-friendliness. In June 2007,
Tenggara
Indonesia‟s Investment Coordinating Board (BKPM) release
9 Papua Telkom, Rahjasa Media report that mentions the new set of rules aimed to provide
Internet on behalf of greater clarity regarding the permitted levels of foreign
4. 4
participation in different sectors in the country.
Countries US, Mexico, Most Most
It basically sent a mixed signal to investors regarding the
future direction of investment policy in Indonesia, as this Brazil, countries countries
reform contains revised list of foreign ownership limits. The Southeast
Telecom sector in one part on the list that is changed, as there Asia, Korea
were tighter restrictions introduced. Under these new (2.3GHz)
regulations, foreign investors could only own up to 65% of
mobile and 49% of fixed-line Operator. Both of them go down
from previous limit of 95%. This changes seems also was Target Operators Operators “Gross
triggered by growing nationalist concern, as there was an
roots” ISPs
increasing interest of Singaporean in the local telecoms
industry at that time [41].
3. The absence of distinct difference
IV. REGULATORY & TECHNOLOGY ISSUES Korean government keeps trying to activate and spread WiBro
There are a few obstacles to broaden the Wireless Broadband service but people do not feel the necessity of using this service
Access in South Korea (WiBro) and Indonesia (Mobile because there is no difference from the wired Internet service in
WiMAX): their home. We can find Internet cafes everywhere and the cost
A. South Korea is very affordable. Moreover, the wired Internet access such as
1. The narrow service coverage. DSL and high-speed Internet is already popular among Korean
The wide service coverage is the most important factor of a families and the price is even cheaper than WiBro. With this
successful service. It means Service Providers should invest a reason, it is natural that people are not willing to use this service
great amount of money to set up WiBro infrastructures. and the future of WiBro is not bright [8].
However, Service Providers hesitate to expand their service
areas and take a very negative policy in marketing because they B. Indonesia
do not have firm confidence in the success of this service. This 1. Spectrum Auction
negative policy is caused by small increase of subscribers and Previously, Regulator took decision to delay the WiMAX
small domestic market. In addition, POSDATA, which was one license Auctions in 2007, which was announced in order to wait
of the main equipment Service Providers, gave up on this until the local manufacture industry is ready [26]. Moreover,
business due to the above reasons [7]. there might be another possibility behind the reason of this
decision, such in order to protect the incumbent Telecoms
2. Spectrum Allocation Operators and Internet Service Providers, as the WiMAX
WiMAX Forum decided to standardize WiMAX device to implementation will collide with the current services because it
support supporting global roaming until 2009 but KT and SKT can provide cheaper Internet and telecommunication access
were excluded in this global roaming project because the two across the country [27]. Thus it is natural if there will be an
companies used different frequencies and bandwidths. In Korea, objection from several incumbents in order to protect their
the allocated service bandwidth is 8.75MHz less than 10MHz current service investments [28, 29].
and the 2.3MHz frequency is also different from foreign
countries using 2.5MHz. Therefore, the government tried to 2. Spectrum Allocation
adjust the bandwidth and frequencies but it failed [7]. There is an issue in Fixed WiMAX frequency band 3.5 GHz in
Indonesia, as this frequency is used for Telkom‟s satellite and
Table 2. Key WiMAX Frequencies [7] PSN for IDR and Broadcast TV. Thus, the WiMAX
Frequency 2.5 GHz 3.5 GHz 5.8 GHz implementation in frequency 3.5 GHz will potentially cause a
problem, mainly in satellite network [20]. Indonesia Telecom‟s
Allocation Licensed Unlicensed/ Licensed Regulator has taken the right path in choosing other frequency
Light bands rather than 3.5 GHz.
licensed However, this decision leads to the next problem, as
Regulator intended to only allow Fixed WiMAX
implementation, but chose to use 2.3 GHz frequency, which are
required by the WiMAX forum to be used for Mobile WiMax,
not Fixed WiMax [7]. Actually, this unusual usage of this
frequency will not just make Service Providers face difficulties
on implementing international roaming, but also the economies
5. 5
of scale will be reduced because it is not globally recognized while Fixed WiMAX doesn‟t implement this standard [15].
frequency band [44]. As Indonesia‟s Government has signed There is skepticism among these local Vendors, which the
agreements for International Roaming with the countries of usage of Nomadic WiMAX would not last longer and will
Asia-Pacific, and most of these APEC countries support Mobile be switched to Mobile WiMAX sooner [25]. Fixed WiMAX
WiMAX, thus the regulation to use Fixed WiMAX in this is claimed not to have a clear road-map, thus the CPE
frequency will violate this agreement [15, 21, 31]. cannot be used in the next short following years, which
means it will not be interactive and profitable for the User
3. Regulation Consistency and Provider [15, 30].
In mid 2010, Regulator then released statement that the range of b. There is a problem on the implementation of TKDN rule for
bands to back the LTE mobile broadband system has been this WiMAX technology, as these local Vendors are not
prepared [32]. This decision was taken, as there is expectation fully supported by the domestic upstream industry on
that the LTE will be adopted as part of 4G strategies in the producing the device [15, 25]. Thus they can only get 30%
country, so it can be put as commercial service within the next supply from domestic while the 70% of the components still
2-3 years. In the press release, it was mentioned that this must be imported [25]. This makes the investment to follow
decision is taken to enhance the country‟s Internet the rule become huge, makes its implementation would not
Development Index (IDI) from 4G cellular networks, by be maximum as the prize for CPE and Base Station to
replace WiMAX broadband system to LTE [11]. implement WiMAX technology become high. Later, this
Later, In November 2010, the Regulator then announced its will cause the Service Provider have put higher investment
consideration to review the country‟s BWA regulation [19]. In to develop their network, and push them to market the
February 2011, the companies who actually won the tender in product to users in uncompetitive price, compared to the
2009 for Fixed WiMAX were then given a signal to allow the other related technology [30].
implementation of Mobile WiMAX technology, with the c. Market Limitation: implement domestic content standard is
option of prize taking (paying more) and being moved to the unfavorable for several Operators and Vendor Mobile
rest of the band 2.3 GHz in the tender [25]. This decision was WiMax is mainly used in other 146 countries rather than
announced due to the reason that most of the Service Providers Fixed WiMAX [15, 21]. Thus, several Vendors are not
who won BWA tender in 2009 still did not apply or failed for really interested to produce device for Fixed WiMAX, due
Uji Laik Operasi / ULO (Operation Acceptance Test) process in to the limited market, which will lead to a high and
order to obtain the operating license for WiMAX service, even uncompetitive price, not profitable and economic scale [20,
though the deadline given by the government ended on 15, 25].
November 2010 [19, 30, 33].
There are several parties (Service Provider and Vendor) Later, these issues seem to lead most of the Service
who objected to the idea to only implement Fixed WiMAX and Providers to hesitate on continuously implementing Fixed
insist to implement Mobile WiMAX technology [15, 20]. WiMAX or Mobile WiMAX as these Vendors also demand the
Furthermore, after 2 years since the auction, there are only 2 Regulator to change the regulation on WiMAX usage standard
Service Providers who have taken action, which are First Media, and switch to Mobile WiMAX [25]. Thus, after 2 years after the
with service called Sitra [34, 35, 36, 37] and Berca Hardaya auction, none of these Service Providers have launched their
Perkasa, with service called Wigo [34, 38]. product for commercialize purpose. There is also a possibility
This then leads to polemic as not all the companies who that these Service Providers are disappointed with the domestic
won the tender in 2009 agreed to this change [39]. As the tender Vendor, which are pointed by the Regulator as representatives
was done specifically for Fixed WiMAX technology of Industri Dalam Negeri / IDI (Domestic Industry). There are
implementation, then the companies followed the process and several reasons behind this based on the assessment made by
do the calculation (frequency and component) based on the the member of Badan Regulasi Telekomunikasi Indonesia /
required technological specifications (Fixed WiMAX) [29]. BRTI (Indonesia‟s Telecommunication Regulatory Body), and
Hasil Uji Petik (Test results) of Ristek (Ministry of Research
4. Relation between Service Provider and Vendor and Technology) [25]:
There are several vendors, which were already pointed by the a. Incapability of the domestic Vendor on showing the road
Regulator to support the Service Provider on implementing map of the device, which must be used by the Service
Fixed WiMAX service in Indonesia, intend to develop the Providers.
products for Mobile WiMAX [22]. Actually, there are b. The domestic vendor has lack of commitment and does not
technological and economical reasons behind this: meet the minimum requirements to deploy commercial
a. Mobile WiMAX adopts IPv6 for Internet access, which will network, as there is incapability on producing their product
mainly be used in the future of the broadband technology, in economic scale.
6. 6
V. RECOMMENDATION a. Strictly implement the Fixed WiMAX first, and then after
A. South Korea the market maturate, hold an auction for Mobile WiMAX
on the remaining frequency, in band 60 MHz [40].
1. Technology Combination
b. Service restrictions: both allowing implementation of Fixed
KT tried to combine WiBro with 3G networks to compensate
and Mobile WiMAX, but there are restrictions on the
short coverage and unsupported voice service. With this effort,
services types that can be provided over Mobile WiMAX,
KT launched a new service, which is “3G+WiBro” and this
as what has been done in Sweden and UK [44]. This can be
service can use 3G networks for voice and WiBro for data
done, for example: mobility option is allowed only within
service. In addition, KT supports hand-over technology
the same cell, and seamless handovers between base
between 3G and WiBro network for seamless connection.
stations are not permitted) [44].
However, it is still a problem that this technology does not
support hand-over from 3G to WiBro network.
If the last option is used, then the Regulator also should give
an opportunity and protection to the Service Provider that has
2. Device Diversity
already put their investment in for the research and
The important thing for spreading this service is to launch
development of the Fixed WiMAX service, by providing
various kinds of WiBro devices. There were a few types of
market protection based on zone. For example the Fixed
WiBro devices such as a USB stick and WiBro+HSDPA
WiMAX should only be implemented in several big cities, as it
modems, small laptops [7].
is also more suitable for cooperates‟ need, considering the
electrical power and average income factor, while the Mobile
3. New service model
WiMAX service should be implemented across the rural
The Service Providers should supply new service models for
regions in the country.
customers to increase profit and subscribers. Combined
services approach can be good alternatives for this, such as
2. Government Subsidies
DMB (Digital Multimedia Broadcasting) service with WiBro.
Indonesia‟s Government can also consider the option of
So far, the absence of various services is the main reason of the
Subsidy Program, where there are some grants and low cost
unpopularity of WiBro among people.
loans provided for certain infrastructure projects in rural areas,
such as for WiMAX products or connectivity. This option can
4. Telecom Policy Consistency
be run, for example by setting a funding initiative to improve
The government usually changed mobile communication
the availability of equitably priced broadband services in
policies whenever there is a change of regime so Service
certain public facilities, schools or libraries where it possible to
Providers and customers could not expect consistent policies
purchase "internal connections" which might include wireless
and regulations. To develop its communication industry,
communications equipment [44]. The government could also
consistent policies are essential.
allow Service Providers to cut the price and provide additional
service to boost the number of subscribers, like what has been
B. Indonesia done in South Korea [6].
After remarked issues that raised in the implementation of This is important, not just because the equipment for this
the WBA in South Korea, analyze how South Korean technology is still expensive, which would make it is not
Government have overdue some of those mentioned problem, affordable especially for people in rural areas where the income
and then consider the specific characteristic of the market and is likely much lower, but also to introduce and educate the
situation in Indonesia, we formulate several recommendation
public about this new technology. Indeed, It would also help
that can be implemented in Indonesia:
the government on achieving its target for 50 million broadband
1. Spectrum and mobility Restriction
users in 2015, in order to push Internet literacy in remote areas
The restrictions on how spectrum can be used are among other
and then boost the domestic economy.
key factors that influence the implementation of wireless
networks, as it play a role in the success of this technology. It is
3. Market Protection
important to create a regulation, which allows the operator to
Indonesia has particularly big challenges to confront in
implement WiMAX as sustainable technologies so there is no
building the necessary broadband infrastructure to cover its
need to spend more investment on the new technology
uniquely complex and broad geography, social diversity, and
deployment. Indonesia‟s market actually needs a sustainable
political and economic issues. Moreover, the implementation of
and complementary ICT infrastructure, to create attractiveness
3G services still also could not reach rural areas across the
and commitment in a long-term investment; which can be
country as a result of national license regulation for all the
implemented by the Government with several options:
mobile Operators, while the LTE implementation still needs
7. 7
time to be mature in the next few years. Thus the create relationships that later will be equally beneficial for the
implementation of both Fixed and Mobile WiMAX are the right business environment within the country. Several
path to overdue these mentioned problems. recommendations to overdue the problems mentioned have
However, there is also an urgent need so the implementation been discussed and one of which is by taking into account the
and business model for WiMAX will not disrupt the current specific characteristic of the market, industry and the political
business climate in the domestic area, especially the Internet situation in each country.
and Telecommunication market environment. These issues
including WiMAX versus existing telecommunication and REFERENCES
Internet industry, and the Fixed WiMAX versus Mobile [1] "WiMax Forum - Technology". Retrieved 2008-07-22.
[2] WiMAX Forum. “Mobile WiMAX – Part I: A Technical Overview and
WiMAX. WiMAX may very well disruptive to traditionally Performance Evaluation, August 2006”. [Online]. Available:
telephony if it is able to provide fixed and mobile voice services http://www.wimaxforum.org/technology/downloads/Mobile_WiMAX_P
to data subscribers via VoIP, while the implementation of art1_Overview_and_Performance.pdf [May. 01, 2011]
[3] WiBro. “WiBro overview” [Online]. Available:
Mobile WiMAX may collide with mobile telecommunication http://www.wibro.or.kr/new/overview01.jsp [May. 01, 2011]
industry as currently the Operator‟s main income is from [4] Internet World Stats. “Korea Internet usage, broadband and
telecommunications reports”. [Online]. Available:
mobile data services. http://www.internetworldstats.com/asia/kr.htm [May. 09, 2011]
The stake-holders (Government, Vendor, Operator) have [5] 2010년 무선 인터넷 이용 실태 조사
spent a lot of money for R&D and implementation of Fixed http://isis.kisa.or.kr/board/?pageId=060200&bbsId=3&itemId=788
WiMAX, thus the Mobile WiMAX implementation should not [6] 국내 통신시장에서 LTE와 경쟁중인 와이브로의 성장 전망
http://rd.kdb.co.kr/jsp/re/content/REIss0101_6584.jsp
collide with it. The Mobile WiMAX should be mainly [7] Organisation de CoopÈration et de DÈveloppement Economiques. “The
implemented and limited in the rural areas. This option would implications of WiMAX for competition and regulation”. [Online].
not just protect the current telecommunication business but also Available: http://www.oecd.org/dataoecd/32/7/36218739.pdf [May. 09,
2011]
fit with the government‟s and market‟s need as Mobile
[8] 국내 WiBro 현황 http://mobizen.pe.kr/808
WiMAX is suitable for retail and Fixed WiMAX is more [9] Internet World Stats. “Indonesia Internet usage, broadband and
suitable for corporate. The opportunity in the WiMAX as the telecommunications reports”. [Online]. Available:
http://www.internetworldstats.com/asia/id.htm [May. 07, 2011]
new technology should not just be treated as a short-term [10] ITU News. “Measuring the information society - Country Rankings”.
investment / trader, which will create a new market failure [28]. [Online]. Available:
http://www.itu.int/net/itunews/issues/2010/03/26.aspx [April. 28, 2011]
[11] Xinhuanet. “Indonesia mulls to replace WiMAX with LTE mobile
VI. CONCLUSION broadband technology”. [Online]. Available:
South Korean government started WiBro service eagerly http://news.xinhuanet.com/english2010/sci/2010-05/12/c_13289947.htm
[April. 20, 2011]
and struggled to broaden this service across the country. [12] Interner World Stats. “Asia Marketing Research, Internet Usage,
However, the number of subscribers remains steady and most Population Statistics and Facebook Information”. [Online]. Available
Koreans were not interested in this service due to to the http://www.internetworldstats.com/asia.htm#id [May. 07, 2011]
[13] Budde. “2007 Asia – Telecoms, Mobile and Broadband in Indonesia and
following reasons: narrow service coverage (only 23 cities),
Timor Leste“. [Online]. Available:
spectrum allocation in 2.3GHz that makes it unsupported for http://www.budde.com.au/Research/2007-Asia-Telecoms-Mobile-and-B
global roaming, with regard to service, it does not have any roadband-in-Indonesia-and-Timor-Leste.html [May. 07, 2011]
distinctions from the wired-band broadband access, which has [14] Internet World Stats. “List of Countries Classified By Internet Penetration
already been widely spread all over the country, and Rates”. [Online]. Available: http://www.internetworldstats.com/list4.
[May. 07, 2011]
inconsistency of policy. [15] Okezone. “Kontroversi Wimax 16d dan 16e di Indonesia”. [Online].
Indonesia‟s Regulator also faces some similar problems, Available:
such as issues in regulation consistency and spectrum “http://techno.okezone.com/read/2009/12/24/54/287896/kontroversi-wi
max-16d-dan-16e-di-indonesia [April. 20, 2011]
allocation, in developing the broadband access technology [16] CIA. “The world fact book”. [Online]. Available:
across the country. However, as the market characteristic and https://www.cia.gov/library/publications/the-world-factbook/geos/id.htm
l [May. 07, 2011]
political situation of these two countries are quite different. [17] Wireless Intelligence. “Fast-growing Indonesian operators prepare for
Moreover, there are several specific issues that have arisen, LTE rollout”. [Online]. Available:
https://www.wirelessintelligence.com/analysis/2010/10/fast-growing-ind
such as the problem related to spectrum auction and onesian-operators-prepare-for-lte-rollout/ [April. 21, 2011]
relationship between stake-holders in the industry (Service [18] The Jakarta Globe. “Telkomsel Dials Up 100m Subscribers in Tight
Market”. [Online]. Available:
Provider and Vendor) since the Government wants to introduce
http://www.thejakartaglobe.com/bisindonesia/telkomsel-dials-up-100m-
market protection for domestic industry. subscribers-in-tight-market/437569 [April. 21, 2011]
Indeed, the main factor is that the Regulator should create a [19] Arsip Berita. “Pemerintah melunak soal WiMAX 16e”. [Online].
Available:
clear road map of broadband technology in the country, so the http://arsipberita.com/show/pemerintah-melunak-soal-wimax-16e-10572
regulation can create a good environment and certainty in the 6.html [April. 21, 2011]
[20] Arrahmah.com. “Kominfo Pastikan Tak Akan Pakai WiMax 16E”.
investment milieu. Later on, this will encourage foreign [Online]. Available:
investors to cooperate with domestic companies in order to http://arrahmah.com/read/2010/06/23/8169-kominfo-pastikan-tak-akan-p
akai-wimax-16e.html [April. 21, 2011]
8. 8
[21] Arsip Berita. “Kemkominfo Bakal Ubah Standard WiMAX 16e”. http://www.bisnis.com/industri/telematika/12355-pemerintah-harus-tega
[Online]. Available: s-soal-wimax-16d [April. 25, 2011]
http://arsipberita.com/show/kemkominfo-bakal-ubah-standard-wimax-16 [41] Temasek. “The KPPU investigation in Indonesia - A case without merit”.
e-109105.html [April. 21, 2011] [Online]. Available:
[22] Arsip Berita. “Rencana implementasi WiMax 16e disambut baik”. http://www.temasekholdings.com.sg/media_centre_kppu_qna_09may.ht
[Online]. Available m [May. 07, 2011]
http://arsipberita.com/show/rencana-implementasi-wimax-16e-disambut- [42] Wibro. “WiBro positioning between WiMAX”. [Online]
baik-107494.html [April. 23, 2011] http://www.wibro.or.kr/new/overview03.jsp [May. 09, 2011]
[23] Direktorat Jenderal Pos dan Telekomunikasi. “Pengumuman Hasil [43] 와이브로 가입자, 3월 말 50만 돌파 (online)
Lelang Tender BWA”. [Online]. Available:
http://www.etnews.co.kr/news/detail.html?id=201103240176
http://www.postel.go.id/update/id/baca_info.asp?id_info=1277 [April.
[44] Organisation de CoopÈration et de DÈveloppement Economiques. “The
25, 2011]
Implication of WiMAX for Competition and Regulation”. [Online].
[24] Direktorat Jenderal Pos dan Telekomunikasi. “Penguluman Hasil Lelang”.
Available: http://www.oecd.org/dataoecd/32/7/36218739.pdf [May. 06,
[Online]. Available:
2011]
http://www.postel.go.id/content/ID/regulasi/frekuensi/kepdir/pengumum
[45] Online Marketing Trends. “Fastest Growing Facebook Users by Country
an%20seleksi%20bwa.pdf [April. 25, 2011]
in Jan 2011: US and Indonesia leads”. [Online]. Available:
[25] Warta Mastel. “Bisnis Indonesia: Operator WiMAX diindikasikan boleh
http://www.onlinemarketing-trends.com/2011/01/fastest-growing-facebo
pakai Standar WiMAX 802.16e”. [Online]. Available:
ok-users-by.html (May. 11, 2011)
http://wartamastel.blogspot.com/2011/02/bisnis-indonesia-operator-wim
ax.html [April. 25, 2011]
[26] Kompas. “Regulasi WiMAX Menunggu Kesiapan Industri Lokal”.
[Online]. Available:
http://nasional.kompas.com/read/2008/08/14/20282373/Regulasi.Wimax
.Menunggu.Kesiapan.Industri.Lokal [April. 28, 2011]
[27] Detik.com. “Onno Purbo: Pemerintah Jangan Tunda Tender WiMAX”.
[Online]. Available:
http://us.detikinet.com/read/2007/03/12/082526/752728/399/onno-purbo
-pemerintah-jangan-tunda-tender-wimax [April. 28, 2011]
[28] JurnalKota.com. “WiMax 16e, Telkomsel Diduga Keberatan”. .[Online].
Available:
http://www.jurnalkota.com/politik/wimax-16e-telkomsel-diduga-keberat
an.html/ [April. 25, 2011]
[29] Koran Baru. “Bos Telkom Pertanyakan Kelebihan WiMAX”. [Online].
Available:
http://koranbaru.com/bos-telkom-pertanyakan-kelebihan-wimax/ [April.
25, 2011]
[30] Arsip Berita. “Jasnita minta kelonggaran teknologi WiMax.” [Online].
Available:
http://arsipberita.com/show/jasnita-minta-kelonggaran-teknologi-wimax-
104198.html [April. 28, 2011]
[31] Kompas. “Mampukah.WiMAX.Menjawab.Impian”. [Online]. Available:
http://tekno.kompas.com/read/2010/03/05/05354040/Mampukah.WiMA
X.Menjawab.Impian. [May, 01. 2011]
[32] Global Telecom Business. “Indonesia may replace WiMAX with LTE”.
[Online]. Available:
http://www.globaltelecomsbusiness.com/Article/2486373/Sectors/25200
/Indonesia-may-replace-WiMax-with-LTE.html [May 01. 2011]
[33] Detik.com. “Operator 4G WiMAX Mulai Uji Laik Operasi”. [Online].
Availale:
http://us.detikinet.com/read/2010/06/22/162855/1383959/328/operator-4
g-wimax-mulai-uji-laik-operasi [April. 25, 2011]
[34] Tempoiteraktif.com. “WiMAX Indonesia Mulai Memancar”. [Online].
Available:
http://www.tempointeraktif.com/hg/itempo/2010/09/25/brk,20100925-2
80422,id.html [April. 28, 2011]
[35] Koran Baru. “TRG Pasok Perangkat Jaringan Sitra Wimax”. [Online].
Available:
http://koranbaru.com/trg-pasok-perangkat-jaringan-sitra-wimax/ [April.
25, 2011]
[36] goingWimax.com . “First Media Launches First WiMAX Network in
Indonesia”. [Online]. Available:
http://www.goingwimax.com/first-media-launches-first-wimax-network-
in-indonesia-11077/ [April. 25, 2011]
[37] Kompas. “Sitra WiMAX Layanan 4G Pertama di Indonesia”. [Online].
Available:
http://tekno.kompas.com/read/2010/06/28/12164046/Sitra.Wimax.Layan
an.4G.Pertama.di.Indonesia [April. 28, 2011]
[38] Detik. “Berca Siap Lepas WiGO WiMAX”. [Online]. Available:
http://us.detikinet.com/read/2010/09/20/140748/1443846/328/berca-siap
-lepas-wigo-wimax/?i991101105 [May. 01, 2011]
[39] Koran Baru. “Telkom „Ancam‟ Pengguna WiMAX 16e”. [Online].
Available: http://koranbaru.com/telkom-ancam-pengguna-wimax-16e/
[May. 01, 2011]
[40] Bisnis.com. “Pemerintah diminta tegas soal WiMax 16.d”. [Online].
Available: