Techno-Economics Analysis of Ext. C-Band Frequency Reallocation in Indonesia

Abstract

The development of the telecommunication world nowadays gets innovative, as seen from the development of mobile wireless communication generation from 1G to 4G and the development towards 5G. In the era of the industrial revolution 4.0, 5G technology is considered to be very important because it has advantages in terms of data rate and latency, the massive of IoT connectivity, spectrum efficiency, mobility, and so on. Spectrum limitation in the deployment of 5G currently becomes a challenge in Indonesia. One of the spectrums that potentially for the early 5G deployment in Indonesia is the 3.4-3.7 GHz band known as the Ext. C-Band. This band is currently being utilized by 5 satellites. Therefore the reallocation process and the allocation of compensation carried out towards the satellite operator by assuming that 200 MHz bandwidth is used for 5G from 3.4 GHz-3.6 GHz frequency and 100 MHz guard band from 3.6 GHz-3.7 GHz frequency. Compensation calculation was conducted by using GHz band approach to find out what the techno-economics value of this method is and whether there is a solution to the problem if the model is applied in Indonesia. The obtained result of the research was the income compensation is 2 times greater than the cost compensation. The spectrum license fee value of 3.5 GHz frequency per 100 MHz is IDR 3.098 trillion. In the case of the NPV value business of each compensation for 10 years shows a positive value. This scenario can be a good solution for satellites operator and regulator as well as cellular operator because it can help improve the financial health of operator in the deployment of 5G. So the 5G technology can be implemented in the Ext. C-Band spectrum.