Presentation on theme: "MOBILE BROADBAND POLICY IN INDONESIA: IMPLEMENTATION CHALLENGES"— Presentation transcript:
1 MOBILE BROADBAND POLICY IN INDONESIA: IMPLEMENTATION CHALLENGES Ministry of Communication and Information Technology (Kominfo)Republic of IndonesiaBroadband WorkshopPretoria, South Africa, November 2013
2 Outline Indonesia ICT Statistics National Broadband Plan Target and action planImplementation: Spectrum refarmingCases of 2100 MHz, 700 MHz and 1800 MHzNational Submarine Backbone ProjectConclusions
3 Indonesia: A Brief Overview SOUTH AFRICAPopulation (millions)237.452.9Surface Area (thousand km2)1,904.51,221.0GDP (PPP) per capita (USD)5,18211,525Human Development Index (HDI)0.629GDP growth (annual %)6.22.5Telephone lines per 100 inhabitants15.527.94Mobile subscribers per 100 inhabitants115.2134.80Percentage of individuals using Internet15.3641.00Fixe-wired broadband subs. per 100 inhabitants1.222.18Percentage of household with computer15.121.5Population is unevenly distributed, 55% of population lives in Java island (7% of total area).Source: ITU statistics (2012) & Wikipedia
4 Indonesia ICT Statistics ServicesUnit2004200920102014 *TelephoneFixedLine Unit8,703,2188,423,9738,429,180Mobile32,009,688190,062,615200,636,587222,853,663Total40,712,906198,486,588209,065,767307,145,463TeledensityPer 100 inhabitants18,8286,0689,791002. InternetSubscriberPerson1.087,4282,000,0002,700,0007,000,000User11,226,14330,000,00045,000,000130,000,0003. Broadband84,9004,520,0007,290,00017,000,000In 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%.*) PredictionIndonesia will depend on mobile broadbandSource: 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: TARGET20132017InfrastructureFixed 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 drivenCommunity involvement & ownershipUniversal accessAffordabilityLeadershipPOLICYREGULATIONINFRASTRUCTUREImproving broadband accessDevelopment of backbone, core network dan internasional linkReduce the dependency on international link.USO / ICT Fund for ecosystem developmentBroadband 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 planRegulation: transitional regulation, market analysis, spectrum- Infrastructure: broadband access, backboneTransitional 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 TargetSource: Indonesia Broadband Plan (2013)Speed20132014201520162017FixedHouseld1 Mbps2 MbpsBuilding100 Mbps200 Mbps500 Mbps800 Gbps1 GbpsMobile512 kbpsMinistry of KominfoRegulation on standards and quality of broadbandRegulation on standards and quality of broadbandRegulation on standards and quality of broadbandMinistry of FinanceIncentive and capitalTelecom OperatorsTo provide networks and quality of servicesLocal governmentTo provide right of way (ROW)CommunityQuality monitoringVendorTo provide devices and systemsWhat 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 TargetSource: Indonesia Broadband Plan (2013)20132014201520162017Fixed45%55%75%85%100%Mobile Broadband70%80%90%Ministry of KominfoTo create regulation for broadband disseminationTo encourage operators to expand networksMinistry of FinanceIncentive and capitalOperatorTo provide networksLocal governmentTo provide right of way (RoW)PeopleCaptive marketSupervisory of Quality of ServiceVendorTo provide devices and systemsAnd 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)20132014201520162017Fixed40%50%75%85%100% (517 district or municipalities)City or regency connected to backbone80%100%Ministry of KominfoTo create regulation for broadband disseminationTo encourage operators to develop backbone network to regency levelTo regulate tariff which encourages community to use broadband servicesTo encourage operator to expand backbone coverageTo ensure all city and regencies accessed by optical backboneMinistry of FinanceIncentive and capitalOperatorTo provide networksLocal governmentTo provide right of way (RoW)PeopleCaptive marketTo allow right of way (RoW) and land acquisition/ usagesVendorTo provide devices and systemsAnd 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 2020Some countries prioritized to acquire more bandwidthBand < 1 GHz (best for capacity and coverage)Band > 1 GHz (best for main business or economic development areas), including WiFi off-loadingLet 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 EffectFlexibility 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) BandwidthCurrent Use450 – 470 MHz2 x 7.5 MHzMobile Cellular (CDMA)694 – 820 MHz2 x 45 MHzAnalog TV (Potential of Digital Dividend LTE 700 MHz)825 – 845 dan870 – 890 MHz2 x 20 MHzFWA and Mobile Cellular (CDMA)890 – 915 dan935 – 960 MHz2 x 25 MHzMobile Cellular (GSM)1710 – 1785 dan1805 – 1880 MHz2 x 75 MHz– dan – 1990 MHz2 x MHzMobile Cellular (PCS-1900/CDMA)1920 – 1980 dan2110 – 2170 MHz2 x 60 MHzMobile Cellular (UMTS)2300 – 2390 MHz90 MHzBroadband Wireless Access – 2390 MHz licensed issued for 15 Regional Zones (Wimax / LTE TDD)2500 – 2690 MHz2 x 15 MHzBWA (TDD)150 MHz2520 – 2670 MHz is currently used by Broadcasting Satellite ServicesThis 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 MHzFixedMobileService level:Future 800 MHz rearrangementApplications level:P-P linksPMP linksPMRCellular2G3GTechnical 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 planAnalogueDigital25 kHz12.5 kHzCurrent 2100 MHzChange of allocation planTechnical level (2) :Freq AFreq BChange of band planChange 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 bandUnlicensed (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 andThe 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 before1234567891011121920MHz (UL)1980 MHz (DL)HCPTAxisAxisTselTselHCPTIsatIsatXLXLNew(Tsel)BlankBlankNew(XL)2110 MHz (DL)2170 MHz (DL)after123456789101111121920MHz (UL)1980 MHz (UL)HCPTHCPTTselAxisTselTselIsatIsatXLIsatXLXLBlankAxisAxisBlankmerger2110 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 competitionBenefits: 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 ANALOG328 MHzAnalog TV Free To Air (FTA)478806 MHzDIGITALIZATION OF BROADCASTING PROCESSTV DIGITAL ERAAnalog Switch-Off (ASO), 1 Jan 2018FutureDTVDIGITALDIVIDEND478806 MHzDigital Terestrial TV Free To Air (FTA)526694Mid-term strategy: the refarming 700 MHz from existing analog TV.New regulation192 MHz112 MHzLTE 700 MHz is beneficial to accelerate Broadband particularly in rural areas with the existing BTSIt 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+, LTELTE is most effective if the Bandwidth is more than 20 MHzUPLINKDOWNLINK
20 National Backbone Project Total undersea cables 35,280 km; Total underground cables 21,807 kmFirst stage: Total installation> 10,000 km; Total cost: USD 300 millionsBroadband 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 ConclusionsIndonesia 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: firstname.lastname@example.org Thank YouNyoman AdhiarnaMinistry of ICT, IndonesiaPhone: +62 (21)