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2009/TEL39/LSG/RR/006rev3 Agenda Item: 2
Policy and Regulatory towards NGN in Indonesia
Submitted by: Indonesia
Regulatory Round Table - Facilitating Next Generation Network Development: Policy and
Regulatory Priorities for a Vibrant ICT Environment
Singapore 15 April 2009
KOESMARIHATI
SPECIAL ADVISOR TO THE DIRECTOR GENERAL OF POST AND TELECOMMUNICATIONS
MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY
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POLICY AND REGULATORYPOLICY AND REGULATORYAPPROACHED TOWARDS NGNAPPROACHED TOWARDS NGN
in INDONESIAin INDONESIA
Presented At REGULATORY ROUNDTABLE ,
APECTEL39Singapore, 15 April 2009
Vision & Mission of MCITVision & Mission of MCIT2
”To make information and communication development effective and efficient to bring prosperous information society on the frame of the Republic of Indonesia
Effectiveness of Public Communication
Availability and Affordability of Information
Efficiency and Integration of Public Service
Information economy development
VISION
MISSIONMISSION
Nation Unity
Professionalism in Public Service
Value innovation and Creativity
Synergy
GUIDING VALUEGUIDING VALUE
3
ICT RoadmapICT Roadmap
Modernisation of Network
INFRASTRUCTURE
Network Availability
Access to everyone
REGULATION & ENFORCEMENT
General Regulation
Technical Regulation
Law Enforcement Education
System
Inventarisation
Empowerment human resources
HUM
AN R
ESOU
RCE
DEVE
LOPM
ENT
InfrastructureIndustr
Research & Development
INDUSTRY, APLICATIO
N & C
ONTENT
Hardware
2011 2012
2009
Goals :Affordable price
distributed access, high quality of services and
efficient used of ICT
2010
2013
Penetration & Distribution
QoS highSecurity
SoftwareCompetency
Content Aplication
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4
ICT Infrastructure Structure Today
Source : Indonesian ICT Infrastructure road map
PSTN* Dial-up* ADSL IP-TV PAY-TV**
9 M 16 M 10 M 130 M 2,5 M 1.0 M 0 0,45 M
15 % IP based Controller **
24 % IP based Core Network**Satellite = 92-C, 20-ext C, 4-Ku, 4-S, 7 MHz –
LFiber Optik = 21.000 km
3 % IP based Access Network**
Copper 2G-2.5G Broadband BroadcastingBasic
NB dataBasic
SMS-MMSNB internet
Multimedia AudioVideo
Penetration TodayDecember 2008
FWA(2G)
FWA & Seluler(3 G)
Seluler(2G)
** Last Dec 2007
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6
Service Evolution Toward NGN
General NGN Architecture
Current architecture Next Generation Network
DWDM/fiber
IP/MPLS
Voi
ce (
Fixe
d &
Wire
less/
mob
ile)
Vid
eo
Dat
a
Inte
rnet
Adv
ance
d Se
rvice
s App
s
Cont
ent
Applications
DWDM/fiber
TDM ATM
Switching IP
Voi
ce
AIN
Vid
eo Switc
hed
Dat
a
Circ
uit D
ata
Man
aged
IP
Inte
rnet
App
s
SDHSDH
Converged services
• Simplification of architecture:one network for voice–data– video
• Reduction in number and types of equipment
•Reduction of OPEX and CAPEX
• More efficient use of available bandwidth
• Possibility to provide new customized services
Eco System Benefit of NGNEnd Users
– Simplified billing – Single operator to deal with– Packaged rich services: Fixed, mobile, voice and data– Optimized delivery of multitude services– Single terminal– No network access boundaries (WLAN, DSL, Wcdma, …)– Single contact number– Service continuity: anytime, anywhere, any service
Network Operators– universal service offering– Interoperability (infrastructure, services)– Streamlined revenue generating services– Lower churn, higher customer retention– Streamlined and merger of Business Models– Reduction in OPEX, Capex (infrastructure, managed services,…)
Manufacturers– Common and more rapid product development– Optimized R&D– Market differentiation and penetration
Initiatives towards NGN9
Policy and regulation toward Convergence
Spectrum Policy and Pricing reform
Palapa Ring Project, to provide optical fiber backbone to all district capital
Structural separation on digital broadcasting transmission
USO Project
NETWORK
FIXED
MOBILE
SERVICES
BASIC
VALUE ADDED
MULTIMEDIA
EXISTING
Still use TDM based infrastructureAnd fixed with cable PSTN
FWA
GSM /CDMA
ADSL
NEW Develop new IP based infrastructure
3G/4G
FTTH/BMetro Ethernet
Develop new IP based infrastructure MIGRATE TOIP BASED
BWA
“Licensing regime should not be on the way of deployment of latest technology but at the same time technology should not be able to bypass regulatory system so that it disturbs the level playing field”
New Paradigm in Licensing Regime
NETWORK
Ser-vices
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3G/4G
OLD LICENSING REGIMENEW REGIME
Key Objectives11
Licensing Regime is Flexible, Technology and Service Neutral and Not Restrictive
The Key Objective is Growth Of Telecom Services In The Country
Level Playing Field
Consumer Benefits
Promotion Of Competition
Key Issues
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Spectrum Pricing
Interconnection
Tariff Related Issues
Numbering Plan Related Issues
Any Other Service Specific term(s) and Condition(s) in the license agreement
SOLVING THE SPECTRUM PRICING AS PREREQUISITE FOR IMPLEMENTATION OF UNIFIED LICENSING
Spectrum Pricing Principles 13
Simple to implement
Encourages efficient utilization of spectrum
Encourages rollout of networks and improve QOS
Should be Technology Neutral
Revenue to the Treasury
Does not give turmoil to the industry
Spectrum Policy and Pricing Reform
17/06/2009DEPKOMINFO
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Used to be only radio apparatus license.In year 2005, new concept of licensing was started to be applied:
Class licensing, Bandwidth licensing
In year 2006, auction in UMTS / 3G licensing was conducted.Planning to convert a radio apparatus license for cellular-type services to become bandwidth license by the end of 2010Balancing between mass market mechanism and spectrum commons:
Planning for mass market band such as cellular / Broadband Wireless Access, we will consider licensing through auctionSome bands will be considered to be class license (spectrum commons), such as 2.4 GHz, 5.x GHz, low power applications, etc.
85 % IP based Controller**
72 % IP based Core NetworkFiber Optik = 33.000 km**
45 % IP based Access Network**
Packet Switched ServiceBasic service, Duoplay, Tripleplay, Quadplay
PSTN Dial-up ADSL IP-TV PAY-TV
10,9 jt 23 jt 35,5 jt 180 jt 5,1 jt 3 jt 4,8 jt 1,5 jt
PENETRATION(Estimated on 2014)
FWA(2G)
FWA & Seluler(3 G)
Seluler(2G)
**Forecast in 2012
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PSTN Dial-up ADSL IP-TV PAY-TV
10,9 jt 23 jt 35,5 jt 180 jt 5,1 jt 3 jt 4,8 jt 1,5 jt
FWA(2G)
FWA & Seluler(3 G)
Seluler(2G)
PHASE I- Eastern IndonesiaTotal new FO Cable
> 10.000 kmTotal cost : USD 300 millions
Palapa Ring PROJECT
17/06/2009DEPKOMINFO
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• Consortium established among several local operators, at year 2008• Due to global financial crisis, the development is relatively slow
Goal : to provide fiber optic to 330 district capital
Government Role in Facilitating PALAPA RING Program
As Palapa Ring initiator in developing a nation-wide high capacity backbone network
As facilitator of the establishment of a consortium to constructthe Palapa Ring
To guarantee the competition safeguard in the consortium business model
As facilitator to avoid deadlock in negotiations
As facilitator in communicating with the other institutions and local governments
Ensuring the necessary regulatory framework for supporting the finalization of the whole Palapa Ring project, including possible implementation using USO fund.
Proposed Functional Separation in Digital Broadcasting Environment
1. In digital broadcasting environment, it is proposed to separate between:a) Content providers which provide contents; andb) Infrastructure providers which collect the contents from
various content providers and use the frequency channel to broadcast them to the viewer or listener digital receivers.
2. Content provider is a broadcaster who has broadcasting services license and only provide the broadcast content and will utilize the infrastructure provided by the infrastructure provider in order to distribute the broadcast program to digital TV and radio receivers.
3. Content providers will be regulated through broadcasting act.4. Infrastructure providers will be regulated through
telecommunication act.
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Now – 20141. No new analogue
assignment ;2. Start introducing digital
radio and TV broadcasting (VHF and UHF) ;
3. Simulcast period between analogue TV and digital TV ;
4. Start phasing out existing analogue TVs, especially in dense cities.
Phase 1 Phase 2 Phase 3
2020 - …1. Phased out all of
analogue TVs, both in dense cities or rural areas
2. Full digital broadcasting services in partially band IV and V UHF (Ch.22 – 48)
3. Channel 49 and above planned to be used for IMT and PPDR (WRC 2003 and 2007)
2015 – 20191. No more analogue TV
in dense cities, only in rural areas ;
2. Continuing phasing out existing analogue TVs for rural areas ;
3. New licensing for infrastructure provider operating in analogue-used channels
Analogue to Digital Migration Timeframe
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Universal Service Obligation
17/06/2009DEPKOMINFO
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Based on regulation, each telecommunication operators has submit 1.25% ( increased from 0.75%) of gross revenue annually for USO provision.In year 2008-2009, Government has conducted tender process to select the operator of USO .
Goals : providing access service to one village one telephone kiosk and to be enhanced to the broadband public access. The winner of 5 packets from 7 packets USO projects is the incumbent mobile operator, using extension of their network , with least cost subsidy and fastest implementation. The 2 other packets just recently re-tendered.By end of 2010 all villages will be provided with basic telephony and data ready.
In the future, DG Postel will consider to subsidize the provision of broadband backbone, such as subsidizing the fiber optic backbonedevelopment of Palapa Ring, as well as provision of broadband services in rural areas,.
Converged Regulation by 201421
Source : ICT Infrastructure Road Map
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Thank you for your attention ……
KOESMARIHATISPECIAL ADVISOR TO THE DGPOSTEL
www.postel.go.idEmail : koesmarihati.gmail.com