1. MOBILE BROADBAND POLICY IN INDONESIA: IMPLEMENTATION CHALLENGES
Ministry of Communication and Information Technology (Kominfo)
Republic of Indonesia
Broadband Workshop
Pretoria, South Africa, November 2013

2. 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

3. Indonesia: A Brief Overview
SOUTH AFRICA
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
GDP growth (annual %)
6.2
2.5
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 is unevenly distributed, 55% of population lives in Java island (7% of total area).
Source: ITU statistics (2012) & Wikipedia

4. Indonesia ICT Statistics
Services
Unit
2004
2009
2010
2014 *
Telephone
Fixed
Line Unit
8,703,218
8,423,973
8,429,180
Mobile
32,009,688
190,062,615
200,636,587
222,853,663
Total
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
11,226,143
30,000,000
45,000,000
130,000,000
3. Broadband
84,900
4,520,000
7,290,000
17,000,000
In terms of ICT statistics, mobile penetration and internet users have increased rapidly.
Just like many other developing countries mobile penetration is much higher than the fixed.
We expected that in year 2014 teledensity become 100%.
*) Prediction
Indonesia will depend on mobile broadband
Source: Mastel, Kominfo dan Bappenas

5. MOBILE BROADBAND COVERAGE (90% BROADBAND)
Here some other figure, the coverage of mobile broadband.
Each color represents different operators.
Mobile broadband coverage is 90% of broadband.
So mobile broadband is dominant technology to provide broadband coverage.
Source: MCIT (Kominfo) Statistics 2009

6. Infrastructure (minimum)
NATIONAL BROADBAND PLAN: TARGET
2013
2017
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)
And this is target in national broadband plan. It consists of fixed and mobile.
For fixed we classify into households, buildings and population.
For the mobile there are two-fold target: coverage (from 12 to 75% of population) and capacity (from 512 kbps to 1 Mbps).
In terms of demand side, the priority of broadband adoption is for government, learning, health, logistics and procurement.
Utilization / Adoption Priority:
e-Government; e-learning; e-health; e-logistics, e-procurement

7. Implementation Strategy
Principles:
Market driven
Community involvement & ownership
Universal access
Affordability
Leadership
POLICY
REGULATION
INFRASTRUCTURE
Improving broadband access
Development of backbone, core network dan internasional link
Reduce the dependency on international link.
USO / ICT Fund for ecosystem development
Broadband Plan Review (strategy, target, goals, stakeholders etc.)
How to achieve the target in year 2017.
There are some principles: (the operation of market forces)
Here there are some strategy related to policy, regulation and infrastructure.
Policy: funding, review of broadband plan
Regulation: transitional regulation, market analysis, spectrum
- Infrastructure: broadband access, backbone
Transitional regulation (short-term)
Market review and analysis – competition, license, tariffs etc.
Regulation on spectrum and backbone

8. Target and Action Plan (Capacity)
Fixed and Mobile Target
Source: Indonesia Broadband Plan (2013)
Speed
2013
2014
2015
2016
2017
Fixed
Houseld
1 Mbps
2 Mbps
Building
100 Mbps
200 Mbps
500 Mbps
800 Gbps
1 Gbps
Mobile
512 kbps
Ministry of Kominfo
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
Telecom Operators
To provide networks and quality of services
Local government
To provide right of way (ROW)
Community
Quality monitoring
Vendor
To provide devices and systems
What is the target and action plan from 2013 to 2017.
Here the targets of capacity consisting of two: fixed and mobile. Fixed consist of house and building.
What is the role of each stakeholder. Here the responsibilities.
Ministry of ICT or Kominfo is in charge of regulation on standarss and quality of broadband.
Ministry of Finance is responsible for incentive and capital.
The operators is to provide network and quality of services etc.
Local government is to provide right of way (ROW). ROW become a big issue since each public utilities tend to construct their own network and there is no intention to share among them.

9. Target and Action Plan (Coverage)
Access Target
Source: Indonesia Broadband Plan (2013)
2013
2014
2015
2016
2017
Fixed
45%
55%
75%
85%
100%
Mobile Broadband
70%
80%
90%
Ministry of Kominfo
To create regulation for broadband dissemination
To encourage operators to expand networks
Ministry of Finance
Incentive and capital
Operator
To provide networks
Local government
To provide right of way (RoW)
People
Captive market
Supervisory of Quality of Service
Vendor
To provide devices and systems
And for the target of coverage, it is based of the percentage of population having fixed or broadband access.
There are also the roles of each share holders including the ministry of Kominfo.
Based on this target, in year 2017 each people should have broadband connection.

10. Target and Action Plan (Backbone Access)
Backbone Target (City and Regency)
Source: Indonesia Broadband Plan (2013)
2013
2014
2015
2016
2017
Fixed
40%
50%
75%
85%
100% (517 district or municipalities)
City or regency connected to backbone
80%
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
Operator
To provide networks
Local government
To provide right of way (RoW)
People
Captive market
To allow right of way (RoW) and land acquisition/ usages
Vendor
To provide devices and systems
And this is the target for backbone connection. Currently Indonesia has 517 municipalities or regencies.

11. Implementation Strategy through Spectrum Policy

12. 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
Let me start with the spectrum issues of broadband.

13. 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.
Current business issues: data has increased rapidly, voice is declined.
But the issue is network cost has also increased and the revenue growth has dropped or stable.
Regulatory cost becomes burden for the operators and flexibility of license become more important.

14. Current IMT-Band in Indonesia (Existing and Future Potential)
Bandwidth
Current Use
450 – 470 MHz
2 x 7.5 MHz
Mobile Cellular (CDMA)
694 – 820 MHz
2 x 45 MHz
Analog TV (Potential of Digital Dividend LTE 700 MHz)
825 – 845 dan
870 – 890 MHz
2 x 20 MHz
FWA and Mobile Cellular (CDMA)
890 – 915 dan
935 – 960 MHz
2 x 25 MHz
Mobile Cellular (GSM)
1710 – 1785 dan
1805 – 1880 MHz
2 x 75 MHz
– dan – 1990 MHz
2 x MHz
Mobile Cellular (PCS-1900/CDMA)
1920 – 1980 dan
2110 – 2170 MHz
2 x 60 MHz
Mobile Cellular (UMTS)
2300 – 2390 MHz
90 MHz
Broadband Wireless Access – 2390 MHz licensed issued for 15 Regional Zones (Wimax / LTE TDD)
2500 – 2690 MHz
2 x 15 MHz
BWA (TDD)
150 MHz
2520 – 2670 MHz is currently used by Broadcasting Satellite Services
This is the list of mobile broadband identified in Indonesia to achieve targets of national broadband plan.
Totally there are about 550 MHz which is potential for mobile broadband.
Future uses depends on how much government efforts to acquire and to refarm those bands for mobile broadband.
Total = MHz

15. Spectrum refarming: Case of Indonesia
Current BWA MHz
Fixed
Mobile
Service level:
Future 800 MHz rearrangement
Applications level:
P-P links
PMP links
PMR
Cellular 2G 3G
Technical level (1) :
Current PMR 400 MHz (analog to digital)
Spectrum refarming is basically reallocation existing spectrum for different usage.
There are three ways to achieve that: allocation (such as from fixed to mobile), band plan (such as change from PP to PMP linkor trunked radio to celullar) and channeling plan
Analogue
Digital
25 kHz
12.5 kHz
Current 2100 MHz
Change of allocation plan
Technical level (2) :
Freq A
Freq B
Change of band plan
Change of channelling plan
- refarming process

16. Spectrum Refarming Strategy
To reach the targets of national broadband plan:
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.
In order to fulfill the target of national broadband plan, Indonesia has two-fold strategy.
The first one is short-term which high priority due to government direction and
The second one is mid-term which may require the complete migration of other services.
The other strategy is to release band > 1 GHz for unlicense band for traffic off-loading.
Criteria: government direction, priority, refarming complexity, business need and international regulation.

17. Short-term Strategy: 2100 MHz Rearrangement
before 1 2 3 4 5 6 7 8 9 10 11 12
1920MHz (UL)
1980 MHz (DL)
HCPT
Axis
Axis
Tsel
Tsel
HCPT
Isat
Isat XL XL
New
(Tsel)
Blank
Blank
New
(XL)
2110 MHz (DL)
2170 MHz (DL)
after 1 2 3 4 5 6 7 8 9 10 11 11 12
1920MHz (UL)
1980 MHz (UL)
HCPT
HCPT
Tsel
Axis
Tsel
Tsel
Isat
Isat XL
Isat XL XL
Blank
Axis
Axis
Blank
merger
2110 MHz (DL)
2170 MHz (DL)
This is an example of short-term strategy. We just completed the rearrangement. It took 6 months to complete.
The objective is to make the band contigous.
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.

18. Mid-term Strategy: Digital Dividend 700 MHz
TV ANALOG
328 MHz
Analog TV Free To Air (FTA)
478
806 MHz
DIGITALIZATION OF BROADCASTING PROCESS
TV DIGITAL ERA
Analog Switch-Off (ASO), 1 Jan 2018
Future
DTV
DIGITAL
DIVIDEND
478
806 MHz
Digital Terestrial TV Free To Air (FTA)
526
694
Mid-term strategy: the refarming 700 MHz from existing analog TV.
New regulation
192 MHz
112 MHz
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

19. Mid-Term Strategy: Refarming GSM 1800 MHz
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 .
Evolution: GSM/EDGE, UMTS, HSPA, HSPA+, LTE
LTE is most effective if the Bandwidth is more than 20 MHz
UPLINK
DOWNLINK

20. 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
Broadband access is not working well without backbone.
Particularly in the remote part of East Indonesia, The construction of submarine optical backbone become important.
Here as shown in the picture, pink line is one of the packages ofthe first stage of the project about 10,000

21. 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.

22. Ministry of ICT, Indonesia E-mail: i.nyoman.adhiarna@kominfo.go.id
Thank You
Nyoman Adhiarna
Ministry of ICT, Indonesia
Phone: +62 (21)