Spectrum fee based on bandwidth license approach submited on Convergence Working Group, AWF-9

1. ASIA-PACIFIC TELECOMMUNITY
The 9th Meeting of the APT Wireless Forum (AWF-9) Document
AWF-9/INP-70
13 – 16 September 2010, Seoul, Republic of Korea 13 September 2010
SPECTRUM FEE BASED ON BANDWIDTH LICENSE APPROACH
by
PT Telekomunikasi Indonesia
Contact: ARIEF HAMDANI GUNAWAN Tel:
Fax:
PT Telekomunikasi Indonesia Email:

2. AWF-9/INP-70
Spectrum Fee
S t F
Based on
Bandwidth License Approach
Arief Hamdani Gunawan
Senior Officer – Telematics Regulation Proposal
The 9th Meeting of the APT Wireless Forum (AWF-9)
Seoul, 13-16 September 2010
Agenda
• Telkom Indonesia
• Spectrum Fee Regime in Indonesia
– Apparatus-License-Based Fee
– Bandwidth-License-Based Fee
• Bandwidth Approaches
– Network Capacity and Scarcity Resources
– Exponential Growth in Wireless Communications
– P f
Performance P User b Format
Per U by F t
– Urban and Rural Phenomena
– Future Bandwidth Deployment
Page 1 of 10 1

3. AWF-9/INP-70
TELKOM INDONESIA
Telkom is the largest telecommunication company and TELKOM is listed at
network provider in Indonesia, owned by the Indonesia Stock Exchange (IDX), New
Government of Indonesia and Public.
Government of Indonesia and Public York Stock Exchange (NYSE), London
York Stock Exchange (NYSE) London
(Total shares = 20,159,999,280, including 1 Dwiwarna share series A) Stock Exchange (LSE) and also Publicly
Offering Without Listing (POWL) at
as of December 31, 2009 Tokyo Stock Exchange (TSE)
Government
52.47%
10,320,470,712 shares
Public
47.53%
9,348,954,068 shares
Treasury Stock
490,574,500 shares
Among The biggest public listed company in Indonesia
1
3
Telkom and Subsidiaries (ownership)
Government Public/Listed
of Indonesia
52.47% 47. 53%
Consolidated
65% 100% 100% 100% 100% 100% 100% 99.99%
(Cellular)
(Telco Equipment)
(Tower business)
(IT Services) (Multimedia)
(Edutainment)
(Property & construction)
(International business)
65% 60% 80% 75% 100%
15.86% 100% 100%
AWI B.V
Unconsolidated
40% 25% 22.38% 5% 2.11%
(Fixed Line)
(VSAT)
(VSAT) (Satellite) (Telco. construction& maintenance)
3
Page 2 of 10 2

4. AWF-9/INP-70
Indonesian Telco Industry Q1/2010
11 Operators and 12 Services
Cellular Cellular Cellular Cellular Cellular Cellular Cellular Cellular FWA FWA FWA FWA
Penetration over population 234 Mil : 91% Total: 213.8Mil
Limited: 28 2Mil
28.2Mil Starone Hepi
p
Full: 177.3Mil 2% 1%
Wireline: 8.4JMil
Other
13%
Fixed Limited 0.4 Mil
XL Wireline Mobility 0.7 Mil
Telkomsel 4% 13% Esia
19%
46% 40%
23.6 Mil
Flexi
57%
Indosat
32.6 Mil
22% 11.2 Mil
81.9 Mil
Full
Mobility
bili 15.9 Mil
Full Mobility (177.3 Mil):
83% Limited Mobility/CDMA (28.2
1. Telkomsel (GSM)
39.1 Mil
2. Indosat (GSM) Mil):
3. Excelcomindo (GSM) 1. Telkom (Flexi)
4. Mobile 8 (CDMA) 2. Indosat (Starone)
5. Sampoerna (CDMA) 3. Bakrie (Esia)
6. Sinarmas (CDMA) 4. Mobile 8 (Hepi)
7. Hutchinson (GSM)
8. Natrindo (GSM)
4
5
Apparatus-License-Based Fee
• More beneficial for Operator, who has slower expansion of BTS
• Operator , who expand faster pay more than the Operator who
expand slower. This could cause the discourage of the development
• Each apparatus/Tx in radio station/BTS has each related license.
• Case for CDMA/GSM Operator and BWA Operator:
– 450 – 457.5 / 460 – 467.5 450 MHz (CDMA 450)
– 824.265 – 844.515 / 869.265 – 889.515 800 MHz (CDMA 800)
– 890 – 915 / 935 – 960 900 MHz (GSM900)
MH
– 1710 – 1785 / 1805 – 1880 1800 MHz (GSM 1800)
– 3300 – 3400 3.3 GHz (BWA TDD)
5
Page 3 of 10 3

5. AWF-9/INP-70
450 MHz (CDMA 450) and800 MHz (CDMA 800)
5 Operators
• 450.00 – 457.50 / 460.00 – 467.50 PT Sampoerna Telekomunikasi Indonesia
• 824.265 – 829.185 / 869.265 - 874.185 PT Telekomunikasi Indonesia, Tbk (region A)
• 824.265 – 829.185 / 869.265 - 874.185 PT Bakrie Telecom, Tbk (region B)
• 830.415 – 834.105 / 875.415 - 879.105 PT Telekomunikasi Indonesia, Tbk (region B)
• 830.415 – 834.105 / 875.415 - 879.105 PT Bakrie Telecom, Tbk (region A)
• 835.905 – 840.825 / 880.905 - 885.825 PT Mobile-8 Telecom, Tbk
• 842.055 – 844.515 / 887.055 - 889.515 PT Indosat, Tbk
8
900 MHz (GSM900)
3 Operators
• 890 – 900 / 935 – 945 PT Indosat
• 900.0 – 907.5 / 945 – 952,5 PT Telkomsel
• 907.5 – 915 / 952.5 - 960 PT XL Axiata
6
Page 4 of 10 4

6. AWF-9/INP-70
1800 MHz (GSM 1800)
5 Operators
• 1710 0 – 1717 5 / 1805 – 1812 5
1710.0 1717.5 1812.5 PT Excelcomindo
• 1717.5 – 1722.5 / 1812.5 – 1817.5 PT Indosat
• 1722.5 – 1730.0 / 1817.5 – 1825.0 PT Telkomsel
• 1730.0 – 1745.0 / 1825.0 – 1840.0 PT NTS
• 1745.0 – 1750.0 / 1840.0 – 1845.0 PT Telkomsel
• 1750 0 – 1765 0 / 1845 0 – 1860 0
1750.0 1765.0 1845.0 1860.0 PT Indosat
• 1765.0 – 1775.0 / 1860.0 – 1870.0 PT Telkomsel
• 1775.0 – 1785.0 / 1870.0 – 1880.0 PT HCPT
7
3.3 GHz Blocks
8 Blocks – 12.5 MHz
Block Allocation (GHz) • 3.4 - 3.6 GHz: migrate to 3.3 GHz (TDD)
1 3.300 3.3125
3 300 – 3 3125
2 3312.5 – 3.325 • 3.3 GHz: FDD to TDD
3 3.325 – 3.375 • 8 operators (in 15 zones):
4 3.375 – 3.350 – JASNIKOM
5 3.350 – 3.3625 – LINTASARTA
6 3.3625 – 3.375 – IM2
7 3.375 – 3.3875 – STARKOM
8 3.3875 3.400
3 3875 – 3 400
– TELKOM
– RABIK
– CSM
– REKAJASA AKSES
9
Page 5 of 10 5

7. AWF-9/INP-70
Bandwidth-License-Based Fee
• Benefits to operators that have aggressively invested in expanding
coverage.
• Bandwidth licensees need an exclusive right so they can flexibly deploy
their networks anywhere any time
• Cellular spectrum is scarce.
• The State and community should not subsidize business.
• Bandwidth licenses may give technology neutrality and flexibility to change
and upgrade technology
• Case for UMTS (WCDMA) Operator and BWA Operator:
– 1920 – 1965 / 2110 – 2155 UMTS (WCDMA) 2100
– 2360 – 2390 BWA (TDD)
10
UMTS (WCDMA) 2100 operators
6 Operators
• 1983 5 - 1990 /1903 75 – 1910
1983.5 /1903.75 PT.
PT SMART TELECOM
• 2110 - 2115 /1920 – 1925 PT. HCPT
• 2120 - 2125 /1930 – 1935 PT. NTS (AXIS)
• 2125 – 2130 /1935 – 1940 PT. TELKOMSEL
• 2130 - 2135 /1940 – 1945 PT. TELKOMSEL
• 2140 – 2145 /1950 – 1955 PT.
PT INDOSAT
• 2145 – 2150 /1955 – 1960 PT. INDOSAT
• 2150 - 2155 /1960 – 1965 PT. XL AXIATA
11
Page 6 of 10 6

8. AWF-9/INP-70
2.3 GHz Allocation
3 from 15 Blocks – 15 and 10 MHz
Block Allocation (GHz) • 2390 – 2400 MHz: USO (Universal Service
1 2.300 2.305
2 300 – 2 305
2 2.305 – 2.310
Obligation)
3 2.310 – 2.315
4 2.315 – 2.320
5 2.320 – 2.325 • 2360 – 2390 MHz: e-auction
6 2.325 – 2.330
• 5 Operators (in 15 zones):
7 2.330 – 2.335
8 2.335 – 2340 – BERCA
9 2.340 – 2.345
– TELKOM
O
10 2.345 – 2.350
11 2.350 – 2.355 – FIRST MEDIA
12 2.355 – 2.360 – IM2
13 2.360 – 2375
14 2.375 – 2.390 – JASNITA
15 2.390 – 2.400
12
Network Capacity and Scarcity Resources
• Estimating Network Capacity: Network capacity is a direct function
of
– Bandwidth
– Signal-to-noise ratio
• This will require an appropriate and coordinated action also on radio
spectrum issues.
• Spectrum is a scarce resource and we all agree that an efficient
use of the radio bandwidth becoming available with the switch
g
to digital technologies, the so-called digital dividend, and other
coordinated actions are needed to allow better and more innovative
mobile services.
13
Page 7 of 10 7

9. AWF-9/INP-70
Exponential Growth in Wireless Communications
What is enabling the apparent exponential growth in wireless
communications?
The capacity of a system to deliver services is defined by three main
factors:
• The bandwidth of the available radio spectrum – in MHz
• The efficient use of that spectrum – bits / second / hertz
• The number of cells – this equates to spectrum reuse
14
Performance Per User by Format
15
Page 8 of 10 8

10. AWF-9/INP-70
Two Broadband Opportunities: Urban and Rural
16
LTE for Urban Capacity and Rural Coverage…
17
Page 9 of 10 9

11. AWF-9/INP-70
Future Bandwidth Deployment
1 Usable spectrum blocks for product implementation.
2 IMT extension 2500 to 2690 MHz, 70 MHz+70 MHz FDD in most countries.
3 Digital dividend; Region 1 (Europe, Middle East and Africa) 790-862 MHz, Region 2 (Americas) 698-806 MHz. Region 3
(Asia) – some 698-790 MHz (e.g. China, India, Japan, Bangladesh, Korea, New Zealand, Papua New Guinea, Philippines and
Singapore) others 790-806 MHz
Source:
18
Thank You
hamdani2@telkom.co.id
Page 10 of 10 10