1. Radio Frequency Spectrum Management in Indonesia - 3G/IMT 2000, TV Digital and other Wireless Activities And Issues - 3G/IMT 2000, TV Digital and other Wireless Activities And IssuesW.I.Widiastuty Director of Radio Frequency Planning Directorate General of Posts and Telecommunication

2. Page 2 OUTLINE ä Why we should manage the Spectrum Frequency ä Route of Spectrum regulation in Indonesia ä How we should allocate 3G/IMT 2000, TV Digital and Other Wireless activities ä What are the issues related with the transition to 3G/IMT 2000 in Indonesia ä The way forward

3. Page 3 Radio Frequency Spectrum Management purposes in our point of view To maximize efficient radio frequency spectrum usage To ensure the availability of spectrum for new technology and services, flexible in adapting new market demands To develop licensing process in fair, transparent, and efficient ways To develop allocation and assignment plan based on market demand To encourage competition To ensure availability of spectrum for public interest, such as for safety and health purposes

4. Page 4 Major changes in telecommunication legislation In 1999 the Government of Indonesia ä published a Telecommunications Policy Blueprint n to map the road to sector reform, and n to spell out Government’s policy in sector restructurization ä enacted a new Telecommunications Law that n abolish mopoly and introduce competition in the sector n stimulates private sector investment and operation n confines the Government’s role in policy-making and regulation n protects consumers interest

5. Page 5 Route of spectrum regulation in Indonesia Basic Constitutio n (UUD1945) ITU Constitution,Convention, Administrative Regulation ITU Constitution,Convention, Administrative Regulation Law No. 36/99 on Telecommunicatio n Law No. 36/99 on Telecommunicatio n Government Regulation On Radio Frequency Spectrum and Satellite Orbit PP No. 53/2000 Ministry Decrees Chapter 33.3

6. Page 6 Spectrum condition in 2 GHz band 2 GHz bands is the favorite band due to : ä Tropical climate. ä Long hop Full of existing user  mainly for Microwave link to support public telephone network. The allocation plan in this band become very difficult and need big effort from new license holders

7. Page 7 Future Trend in Wireless ä 3 G / IMT – 2000 n Mobile services market in Indonesia n Issues in the transition of 3G/IMT- 2000 ä Broad Band Wireless Access (BWA)

8. Page 8 Preparation for 3G/IMT-2000

9. Page 9 Mobile services market in Indonesia (1/2) Seven in operational stage ä Six licensees in the 800/900 MHz band n Three GSM 9000 (national) n Two AMPS (regional) n One CDMA One (regional) ä One licensee in the 450 MHz band (NMT) Nine in pre-operational stage ä Seven licensees in the 1.8 GHz band for regional ä Two licensees in the 1.8 GHz band for Notional wide

10. Page 10 Mobile services market in Indonesia (2/2) Mobile growth rate is about three to four time that of fixed network

11. Page 11 ISSUES IN THE TRANSITION TO 3G Global standardisation of 3G Licensing Spectrum

12. Page 12 Standardization of 3G / IMT 2000 The Government in order to implement 3G/IMT 2000 will : ä Adopt a technology neutral approach ä Permit operators deploy any IMT 2000 system that n is compatible with the spectrum plan of Indonesia n maximizes users convenience in roaming n facilitates reasonable users choice in terminals n to the greatest extent possible enables operators of existing systems evolve smoothly towards IMT 2000

13. Page 13 Licensing (1/2) Mastel’s recommendations: ä existing operators should not be excluded in the bid for IMT 2000 license ä number of operators to be licensed should be determined within the constraints of the minimum spectrum requirements ä use an approach for selecting licensees that benefits the society ä ideally IMT 2000 MSS (mobile satellite system) should be authorized for service at the expected date of service of the terrestrial part of IMT 2000

14. Page 14 Licensing (2/2) Government Plans ä Determine efficient spectrum frequency usage ä Design license package ä Determine fair and transparent regulation

15. Page 15 Background : ä any regulatory actions regarding IMT 2000 spectrum should be aimed at encouraging investments in IMT 2000 systems ä permit existing operators to use IMT 2000 technology in spectrum currently allocated to them Spectrum (1/2)

16. Page 16 Spectrum (1/2) Frequency in MHz 1800 1850 1900 1950 2000 2050 2100 2150 2200 2250 SAT terrestrial IMT-2000 terrestrial IMT-2000 satellite GSM 1800 DECT PHS terrestrial Allocation to IMT-2000 (core band) terrestrial 1885 2025 19802010 2110 21702200 1880 2025 19802010 211021702200 1900 18951920 ITU WRC 92 Indonesia Terr. : 135 MHz SAT. : 60 MHz terrestrial SAT Unpaired spectrum (15 MHz) Paired Spectrum (2 x 60 MHz)

17. Page 17

18. Page 18 Regulation License will be given for 20 years Roaming facility (new operators need access to the 2G) Infrastructure sharing Reserving spectrum

19. Page 19 Broadband Wireless Access (BWA) 1/2 Spectrum Frequency license will be given based on first come first serve basis The plan of spectrum allocation : n 2,4 GHz  1 block Sharing usage n 3,3 GHz  1 block of 2 x 24 MHz (FDD) n 5,8 GHz  1 block Sharing usage n 10,5 GHz  (1) 7 block of 2 x 7 MHz (2) 7 block of 2 x 14 MHz n 24/26 GHz  4 block of 2 x 150 MHz n 27 GHz  1 block of 1 GHz n 28 GHz  1 block of 850 MHz

20. Page 20 Broadband Wireless Access (BWA) 2/2 License granted :  11 (Eleven) Licenses n 0ne in 3,3 GHz n Four in 5,8 GHz n Tree in 10,5 GHz n One in 24/26 GHz n One in 27 GHz n One in 28 GHz Issues arising ä The using of ISM band in 2,4 GHz for Wireless Local Access for Internet ä Sharing Criteria

21. Page 21 TV Broadcasting Existing Condition : ä The system still Analog ä There are : ä 5 (five) licenses in operational stage (National wide) ä 5 (five) licensees in pre-operational stage (Regional) Way Forward : Changing in legislation  Autonomy Regim Broadcasting Law The master plan of TV Broadcasting (included TV Digital) Global standards for TV Digital

22. Page 22 Thank You!

23. Page 23 Way forward To enable the industry adequately prepare for the entrance into the 3G world, Mastel would invite the Government: ä to issue a consultation paper at earliest convenience that addresses among other things the following issues: n time frame n spectrum pricing n policy implications of WRC 2000 decisions on 3G extension band n etc. ä to consider comments offered by the industry on the issues and eventually establish further dialog with all parties concerned