Dr. Nyoman Adhiarna gave a keynote speech on mobile broadband development in Indonesia, outlining trends, challenges, and policy updates. He discussed how global trends like smart devices, social media, and small cells are impacting mobile broadband. In Indonesia, subscriptions, internet contribution to GDP, and penetration rates are growing rapidly. However, spectrum scarcity and flexible regulations pose challenges. Recommendations include flexible spectrum licensing, technology neutrality, and separating spectrum licenses from telecom licenses.

1. LOGO
Dr. Nyoman Adhiarna
Directorate of Spectrum Policy and Planning
Ministry of Kominfo, Indonesia
Mobile Broadband Development in
Indonesia: Trends and Challenges
Keynote Speech on
7th International Conference on Telecommunication Systems, Service &
Applications (TSSA), Bali, 30 October 2012

2. Outline
1. Background
2. Global Trend
3. Indonesia’s Trends and Policy Updates
4. Regulatory Challenges
2

3. Mobile Broadband: Background
3

4. Why Mobile Broadband?
4

5. Creative Destruction
5
J. Schumpeter (1883-1950)
Creative destruction: a continuous innovation that affects mobile broadband.

6. Mobile Broadband: Global Trends
6

7. Smart Device Takes Top Spot
7

8. ICT Product Is No Longer Just Hardware
8

9. We Are All “On the Move”
9
from voice community to text community

10. The Rise of Social Media

11. The rise of Streaming

12. Small Cells
12
Small cells and
femto cells are
becoming the
solutions of choice
for increasing
network capacity.

13. Spectrum Scarcity (Crunch)
Improvement of ubiquitious computing is facilitating
radio use as core element to connect every electronic gadgets
Emergence of commercialized radio broadcasting service
causes lacking of radio resources
• Improvement of spectrum management
• Taking measure to improve sharing
techniques and development of unused
frequency bands
Service
Evolution
Analog Era 3G2G Mobile broadband era
Public demands Commercial demands
High
demand
Supplying
Demanding
13

14. Indonesia :90
(above world mobile average)
14
Global ICT Trends

15. Global Trend: Subscriptions and Devices
Source: Ericsson (2012)Source: ITU (2010)
15

16. Global Trend: Traffic
Source: Ericsson (2012)
16
Geography
handset

17. Penetration Rate
Source: Frost and Sullivan
17

18. Penetration Rate - Household
Source: Frost and Sullivan
18

19. Blended ARPU
19
ARPU: Average Revenue Per Users
Source: Frost and Sullivan

20. Internet Users
20

21. Mobile Broadband in Indonesia:
Trends & Policy Updates
21

22. 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
*) Estimated
Source: Kominfo & Bappenas
Indonesian ICT Statistics
22

23. 23
Social Networking
US (156 mn people)
Indonesia (41 mn people)
UK (31 mn people)
Turkey (30 mn people)
India (30 mn people)
“Facebook users in Indonesia 41 Mn
people, 2nd rank in the world as per
October 2011”
Japan (16.1 mn people)
India (6.4 mn people)
Indonesia (6.2mn people)
Singapore (2.1 mn people)
Philipines (2.0 mn people)
“Twitter users in Indonesia 6.2 Mn people,
3rd rank in Asia per October 2011”
Indonesia internet user : 50 million people (2011)
23

24. Indonesia: Internet Contribution to GDP
Source: BPS Data (2010)
24

25. 25
ICT Roadmap (2010 – 2020)
• All villages
have
telephone
access
• Establishment
of national ICT
strategies
2010-2014
• Establishment
of National
Information
Security
Authority
• E-Government
masterplan
• All sub-districts
have internet
access
• Enhancing ICT
institution
capability
• Enhancing
commitment for
ICT resources
• Enhancing IT
capacity
building
• All province
capitals are
connected to
optical
networks.
• All districts and
cities have
broadband
access
• Enhancing e-
services: health
and education
for all.
• Enhancing
broadband
access above
5MB
• Increasing
national
competitivenes
s and
innovative
industry
• All districts
and cities
have e-
government
service
• “Competitive
Indonesia”
Indonesia connected
Indonesia
informative
Indonesia
broadband
Indonesia
digital
• No blankspot
• Telephone
access
• No blankspot
• Internet
access
Information
Society
Knowledge
Society
Civil
Society
Source: Renstra Kemkominfo

26. National Broadband Plan
 Based on Government Decree PP No.5/2010 on Mid-Term National Plan
and Economic Infrastructure Plan (MP3EI)
 Most cost-efficient using cellular infrastructure
 Target:
 Broadband coverage : 30%
 Backbone: 100% inter-island
 75% District capitals have broadband access
 Broadband – standard of services
 256 kbps (OECD and BWA Whitepaper)
 Need for periodical review as the phenomena of tablet, smart phone, new services etc.
26

27. Minimum Downlink for Users
It is expected that wireless broadband could provide services that guarantee
minimum access per user without decreasing access speed during the services.
Area of
Services
Minimum downlink bit rate per user (Mbps)
2012 2014 2016 2018 2020
Area-1 .512 1 2 3 3
Area-2 .512 .512 1 2 3
Area-3 .512 .512 1 1 2
Area-4 .512 .512 1 1 1
27

28. Mobile Communications and
Frequency Bands
 Mobile operators (FDD/ paired band)
 Band plan GSM-900/1800
 IMT-2000 (UMTS) band plan
 Mobile and FWA operators (FDD/ paired band)
 Band plan CDMA-850
 BWA Operator for TDD 2.3 GHz (unpaired band)
 BWA Operator for 2.3 GHz (paired)
 BWA Operator for 3.3 GHz
 2.6 GHz band plan options
 Digital Terresterial Television Broadcasting (DTTB) & digital dividend in UHF
band
 Digital dividend (700 MHz) band plan
28

29. Band Spectrum Existing usages
450 – 470 MHz 2 x 7,5 MHz
Cellular telephony (2.5G—CDMA and 3G-
CDMA EVDO)
694–820 MHz 2 x 45 MHz
Analog TV is going to migrate to Digital and
Government acquires Digital Dividend
825–845 and
870–890 MHz
2 x 20 MHz
Cellular telephony (2.5G—CDMA and 3G-
CDMA EVDO)
890–915 and
935–960 MHz
2 x 25 MHz
Cellular telephony (2G—GSM900 and 3G—
WCDMA/HSPA). National (band) license
1710–1785 dan
1805–1880 MHz
2 x 75 MHz
Cellular telephony (GSM1800).
National (band) license
1903.125 – 1910 and
1983.125–1990 MHz
2 x 8.675 MHz
Cellular telephony (2.5G-CDMA and 3G EVDO).
National (band) license
1920–1980 dan
2110–2170 MHz
2 x 60 MHz
Cellular broadband and telephony 3G.
National (band) license
2300–2390 MHz 90 MHz
Broadband Wireless Access. For band 2360 –
2390 MHz License has been awarded for 15
regions.
2500–2690 MHz
2 x 15 MHz
Currently being used for wireless broadband
TDD
150 MHz
2520 – 2670 MHz is currently being used for
Satelit broadcasting (DTH).
29
Spectrums for Mobile Broadband in Indonesia

30. Future Bandwidth Issues
 To anticipate spectrum crunch due to mobile broadband traffic, three solutions:
 Increase spectrum bandwidth
 Increase number of tower
 Increase type of technology with more spectral-efficient
 In US, FCC (2010) identified 500 MHz spectrum for mobile broadband in year 2020
 Additional allocation of 500 MHz has been followed by UK (Britain’s Superfast Broadband
Future, December 2010).
 ACMA, Australia estimated additional 150 MHz are needed by 2015, and another 150 MHz
for 2020, from current 800 MHz which have been allocated for mobile services.
 Currently Indonesia totally uses only 522.35 MHz for cellular services. This figure is much
lower than other countries such as Australia.
30

31. Band Plan of CDMA-850
31

32. Band Plan of GSM-900/1800
32

33. IMT-2000 (UMTS) Band Plan
33
Notes:
• Diagram of frequency blocks as a result of 2.1 GHz auction and refarming in year 2006 – 2008.
• 2nd carrier of UMTS has been granted to Telkomsel and Indosat in mid of 2009
• PCS-1900 operator has been in operation since 2007 (Smart). Mixed allocation between PCS-1900
and UMTS has created potential interference. 5 – 10 MHz guard band is needed.

34. Operators for Broadband Wireless
Access (BWA) 2.3 GHz in Indonesia
ZONA AREA BLOK 13 BLOK 14
1 Sumbagut First media Berca
2 Sumbagteng Berca Berca
3 Sumbagsel Berca Berca
4 Banten &Jabotabek First media Internux
5 Jabar minus Botabek Comtronics IM2
6 Jabagteng Telkom Comtronics
7 Jabagtim Comtronics Telkom
8 Balinusra Berca Berca
9 Papua Telkom WiMAX Ind
10 Maluku & Malut Telkom WiMAX Ind
11 Sulbagsel Berca Berca
12 Sulbagut Telkom Telekomindo
13 Kalbagbar Berca Berca
14 Kalbagtim Berca Berca
15 Rikep Berca WiMAX Ind
NOMOR
BLOK
RENTANG
FREKUENSI (MHz)
LAYANAN
1 2300 - 2305 BWA
2 2305 - 2310 BWA
3 2310 - 2315 BWA
4 2315 - 2320 BWA
5 2320 - 2325 BWA
6 2325 - 2330 BWA
7 2330 - 2335 BWA
8 2335 - 2340 BWA
9 2340 - 2345 BWA
10 2345 - 2350 BWA
11 2350 - 2355 BWA
12 2355 - 2360 BWA
13 2360 - 2375 Fixed BWA
14 2375 - 2390 Fixed BWA
15 2390 - 2400 USO
34

35. NOMOR
BLOK
RENTANGFREKUENSI
(MHz)
1 3300-3312.5
2 3312.5-3325
3 3325-3337.5
4 3337.5-3350
5 3350-3362.5
6 3362.5-3375
7 3375-3387.5
8 3387.5-3400
ZONA
BLOK FREKUENSI
1 2 3 4 5 6 7 8
I Sumbagut Lintasarta Indosat Starcom Telkom CSM
II Sumbagteng Lintasarta Indosat Telkom
III Sumbagsel Lintasarta Indosat Starcom Telkom
IV Jabotabek & Banten corbec Jasnikom Lintasarta Indosat Starcom Telkom Rekajasa CSM
V
Jabar minus
botabek corbec Lintasarta Indosat Starcom Telkom Rekajasa CSM
VI Jabagteng Lintasarta Indosat Starcom CSM
VII Jabagtim Lintasarta Indosat Starcom CSM
VIII Bali Nusra Lintasarta Indosat Starcom Rabik CSM
IX Papua
X Maluku & Malut Lintasarta
XI Sulbagsel Lintasarta Indosat Starcom
XII Sulbagut Lintasarta Indosat
XIII Kalbagbar Lintasarta Starcom Telkom
XIV Kalbagtim Lintasarta Indosat Starcom Telkom
XV Kepri Lintasarta Indosat Starcom
Notes:
Exisiting operators in 3.3 GHz FDD /TDD and 3.5
GHz TDD have to migrate to 3.3 GHz TDD by mid
2011
35
Operators for Broadband Wireless
Access (BWA) 2.3 GHz in Indonesia

36. 2.6 GHz Band Plan Options
Rec. ITU-R M.1036
Status Quo Option
Options for Band Segmentation
36

37. Preliminary Band Plan for Digital Dividend in Indonesia
(470 – 862 MHz)
37

38. Mobile Broadband in Indonesia:
Regulatory Challenges
38

39. Spectrum & Broadband Policy: Goals
39
Minimize
Inteference
Dynamic
and flexible
to Spectrum
Access
Maximize
the use of
Spectrum
Efficient use of
Spectrum
ICT Industry
and
Penetration
Affordable
and
Competitive
Broadband
Access
Spectrum Broadband

40. Trends and Emerging Issues
 Spectrum management models: from Traditional command and control to Non-
traditional (market based, unlicensed, and sharing).
 Spectrum Value
 Spectrum Refarming (Analog to Digital Terretrial Broadcasting Migration, Digital
Dividend, etc.)
 New emerging technologies such as Cognitive Radio (CR)
 Technology and Service Neutrality
40

41. ICT and Broadband: Challenges
 Laws and regulations are not flexible and adaptive enough:
 Voice ►◄ Data (separated)
 Fixed ►◄ Mobile
 Telecommunication ►◄ Broadcasting
 Telecommunication network, services, wholesale and resale are not regulated clearly
 More adaptive – to anticipate dynamic ICT and broadband environment
 Better resource management - spectrum and numbering
41

42. Spectrum Policy: Challenges
 Regulation for new and emerging technologies : Cognitive Radio, and
Convergences among different services
 Different and competing standards, band plan, etc.
 Standards: Among countries in European Union, North America, and China,
Japan, and Korea
 Band plan: of competing technologies are conflicting one another
 New spectrum management method: spectrum trading, secondary market, etc.
42

43.  Flexible Use of Spectrum, to ensure the optimum use of spectrum while minimizing the
interference.
 Type of Licenses: Bandwidth License, Radio Apparatus License and Class License
 Possible options of spectrum exclusivity use (bandwidth licenses) and spectrum
commons (class licenses)
 Possible transfer of ownership of bandwidth license. Such as: aggregate/disaggregate
bandwidth and geographical locations, leased part of spectrum license within the
spectrum boundary, etc.
43
Recommendations to Existing
Regulation (1)

44. Recommendations to Existing
Regulation (2)
 Separation of Spectrum License from Telecomunication License and Broadcasting
License
 Flexibility to adopt 4G technology (technology neutrality)
 Simplification of Certification Process into only CPE. The others are regulated by
technical conditions of Spectrum License / Radio Apparatus Licenses
 Abolishment of current practice: Principal License and Modern Licensing of
Roll-out obligation Plan of Telecommunication License.
44

45. Conclusions
 Mobile broadband landscape has changed rapidly in the last few years and it
requires new innovative ways to deal with.
 Indonesia is facing big challenges to meet the future demand of mobile
broadband.
 Policy and regulation in mobile broadband should be efficient, competitive,
long-term oriented and flexible enough to meet the future demand.
45

46. LOGO
Nyoman Adhiarna
Email: adhiarna@postel.go.id
Directorate of Spectrum Policy and Planning
Ministry of Kominfo, Indonesia