On Developing a New 5G Spectrum Usage Fee Model for Indonesia

Abstract

This paper reports on the development of the 5G spectrum usage fee in Indonesia. The fee was first applied in 2010 to charge mobile network operators (MNOs) that provided cellular services. However, cellular technologies have improved rapidly from 2G, 3G, 4G to 5G, and many modern innovative cellular services demand larger spectrum bandwidth. Therefore, the existing spectrum usage fee must be revised to meet the needs of the community better and to improve the efficiency and effectiveness of spectrum use. This study modifies the characteristics of the existing cost structure of the Indonesian spectrum usage fee, designing and proposing a new 5G spectrum usage fee model to support 5G technology usage scenarios and maximize the benefits of the midband (3.5 GHz), mmWave, or high band radio frequencies (26 GHz and 28 GHz). The new spectrum usage fee model includes spectrum-sharing parameters (non-orthogonal spectrum-sharing and orthogonal spectrum sharing) and private network to optimize the use of the available spectrum because the new proposing formula does not use the nationwide population, but instead, it uses the population within a specific area with both human and non-human (machine) populations. This new model is expected to help regulators prepare 5G technology regulations for application in Indonesia.