1. A LESSON LEARNT ON WLAN 2.4 GHz OUTDOOR APPLICATION IN INDONESIA AZHAR HASYIM Director of Frequency Spectrum Planning – DGPT APEC TELECOMMUNICATION AND INFORMATION WORKING GROUP APRIL 3, 2005 BANGKOK - THAILAND

2. Background Indonesia Internet status History of 2.4 GHz Liberalization Regulation Strategies Topics

3. NOTES These are several topics that I would share in terms of 2.4 GHz liberalization in Indonesia, they are : - Background - Indonesia Internet Status - History of 2.4 GHz liberalization - Regulation strategies

4. Background Internet becoming unifying platform – a cornucopia of interactive, multimedia services Geography of archipelago become a major challenge The lack of availability and unbalanced distribution of information and telecommunication infrastructure Internet connection tariff is relatively still too high, particularly cable services from incumbent operator Fixed-line networks are slowly replaced by a wireless network

5. NOTES We live in an enriching era where internet becoming unifying platform, a cornucopia of interactive and multimedia services. The Indonesia geographic structure, which is archipelagic islands, is a big challenge in developing a nation-wide infrastructure. But not only that, the economic crisis and human resources were also main challenges in the telecommunication development. The reality indicate, information and telecommunication infrastructure only available in big cities and many village or rural area have not yet telecommunication access. The limited fixed line connection from incumbent operator had caused Internet connection tariff is relatively expensive. And therefore fixed- line networks are slowly replaced by a wireless network.

6. Indonesia Internet Status Internet/ISP subscribers: 1,200,000 Internet users: 12 millions of 215 million population, less than 1% penetration, potentially could reach 60 million users Total internet traffic : 4 Gbps ISPs: 43 providers Internet Exchanges : 3 units Computer penetration : 1 – 2 % or < 5 PCs per 100 households Thousands of public internet kiosks. Liberation of 2.4 GHz ISM band for WLAN

7. In the year 2004, estimation number of ISP/internet subscriber in Indonesia, reach more than 1,2 million subscriber with over than 12 million internet users. With 215 million of population, the precentage of internet users is less than 1% penetration, one of the lowest in the Asia Pacific region. As internet connection tariff is relatively expensive because the difficulties to have fixed line connection from incumbent dominant PSTN operator (especially in rural areas), thousands of unlicensed public internet kiosk (Warnet) are facing a very difficult time to survive as viable businesses. But not only that, National legal satellite providers are also too costly in provide the connection to the international internet traffic. This difficulty was becoming the combination of WLAN and illegal satellite access to foreign satellite which have no license or no legal footprint in Indonesia as the very attractive alternative. All these conditions encourage the liberalization of 2.4 GHz ISM band to provide an easy, fast and cheap internet access on Nation-wide basis

8. Why 2.4 GHz ? Low initial investment Uses “unlicensed” frequency Point-to-point (line of sight) Interference with other users Not “mobile” PRIVATE SECTOR PERSPECTIVE

9. NOTES If we look from private sector perspective, low initial investment is the main reason the utilizing of this frequency band is rise rapidly in Indonesia. The advance in ICT technology lead to a much lower cost and more user-friendly equipments. WLAN 2.4 GHz spread spectrum equipment used in Indonesia has been tremendously popular and fast-growing because its simple, easy to install and relatively affordable. These bands, also called ISM bands, are known as uses “unlicensed” frequency. The other reason is come from the natural characteristic of this frequency band. 2.4 GHz propagation characteristic make enable to use this band for long hop point to point connection.

10. HISTORY OF 2.4 GHz USAGE IN INDONESIA Indonesian Telecommunications Act No. 36 of 1999 : the use of radio frequency shall be based on licensed issued by regulator Trends of 2.4 GHz ISM band license-exempted in other countries There were many licensed Microwave Links in operation on 2.3 – 2.5 GHz band, Trends of the 2.4 GHz WLAN usage increased rapidly DGPT issued an ordinance on the sharing basis of 2.4 GHz band usage for outdoor WLAN applications and Microwave links Public consultation were intensively made during the process of 2.4 GHz band liberation.

11. According to Indonesia Telecommunications Act No. 36 of 1999, no person shall use any radio frequency or any radio frequency emitting apparatus in Indonesia except under the authority of a license issued by minister. Until the end of 2004, 2.4 Ghz frequency bands was not considered for license exempt applications in Indonesia. Only license operators are permitted to use 2.4 GHz equipment. The other occupants are thousands of microwave links as a backbone supporting telepony services routing from each islands because the propagation characteristic of 2.4 GHz band which is good for long hop point to point radio link. This was one of the Indonesian government consideration, 2.4 GHz liberalization will giving impact a big cost for the microwave link operators. In most countries these bands (also called ISM bands) are declared as license exempt bands. Some of WLAN 2.4 GHz application in Indonesia strongly insisted that the spectrum is part of the ISM band and should be unlicensed to provide internet access with very competitive price. The struggle between illegal WLAN 2.4 GHz communities and the Government had been happened for about 3 years since 2000. DG POSTEL had very difficult situation and strong political pressure in such a way that it could not conduct law enforcement effectively. However, since the last 2 years, In order to prepare Indonesia telecommunication environment to align with global development and to facilitate increasing internet penetration in Indonesia, Directorate General of Posts and Telecommunications (DGPT) needs to deregulate this 2.4 Ghz bands. DG POSTEL involved the WLAN 2.4 GHz user communities, academics, industry, and government institution to find a solution

12. Regulation Strategies Liberation of 2.4 GHz band for internet and data access is regulated by a Ministerial Decree The 2.4 GHz equipment shall be type approved Migrate the existing user (microwave links) from 2.3 – 2.5 GHz band to other new bands

13. NOTES Liberalization not means no regulation at all, thus under certain technical standards and specifications operating in 2.4 GHz bands may be considered for license exemption (unlicensed). With a series of lengthy discussion, debates, not only in the meeting, but also in the workshops and mailing list, on last January, DG POSTEL was successfully signed the Decree to ease the radio frequency of WLAN 2.4 GHz application for data communication under Ministrial Decree No. 2 / 2005 on 2400 – 2483.5 MHz Frequency Band. To facilitate the licensing procedure, no radio frequency licence is required but type approval (certification) of equipment is a must. At present the government still evaluate another frequency band for the existing microwave link reposision.

14. 2.4 GHz Regulation Ministerial Decree on 2400 – 2483.5 MHz Band: License-exempted  no-interference basis Everyone could access the spectrum (individual, ISP, corporate, internet kiosk, data access) Limited output power (EIRP), less than 4 W (36.02 dBm) for outdoor and 500 mW (27 dBm) for Indoor usage. Equipment shall be type approved Existing (fixed) users should be migrated to another frequency band within 2 years from January 2005.

15. NOTES The operation of license exempt spectrum is “no interference and no protection basis”. This means that license exempt users of the spectrum must not cause interference to other licensed users, nor they could claimed protection from interference from such user. Everyone can use this spectrum : individual, ISP, corporate, internet kiosk or data access. In the decree, the ERP limitation was stated, maximum : - 4 Watt for Outdoor used and - 500 mWatt for Indoor used And type approval for the Equipment is required Current operators (under licensed) operating 2.4 – 2.5 Ghz bands should be migrate to the alternate frequency bands, within period of 2 years.

16. Usage Structure Education (Schools, Universities) Government institutions, Police Department, Regional Governments ISPs, Internet kiosks Private Link (Corporate)

17. NOTES This long process provides excellent experience to DG POSTEL and industry to involved in public participation to reshape the policy and regulation. The expectation from this new regulation with long history in behind, will accelerate the internet penetration not only for comercial used but also for education and information distribution in urban areas as well as in rural areas.

18. www.postel.go.id