Techno Economic Analysis of Spectrum License Price in Indonesia for NB-IoT Deployment

Abstract

Trend of internet of things (IoT) creates new innovation in wireless technology. Low power wide area (LPWA) technology is one of the emerging technology that support IoT paradigm. Low power and long range characteristic of LPWA enables connectivity for low power device in large geographical area. LPWA as wireless communication technology require radio spectrum in its operation. LPWA can run both in licensed and unlicensed spectrum, but LPWA in licensed spectrum can give service assurance. As a limited resource, the use of the frequency spectrum is regulated by the government by applying a licensing system. This research will calculate the price of spectrum license in LPWA according to Indonesian regulation. NB-IoT system will be used as input parameter in calculating the spectrum price in Indonesia. The spectrum price then inserted into economical analysis as a component in operational cost and initial investment. As a result of this research, NPV analysis will be conducted to see profitability of investment in LPWA NB-IoT technology.