Analysis of secondary market policies of radio frequency spectrum in indonesia

¹ Department of Electrical Engineering, Universitas Indonesia, Kampus Baru UI, 16424
² Ministry of Communication and Informatics, Republik Indonesia, Jakarta, INDONESIA

^* Corresponding author: gunawan@eng.ui.ac.id

Abstract

The radio frequency spectrum is an important factor in improving service quality and expanding the network of cellular operators. Operators attempt to obtain additional spectrum allocations through the practice of merging or taking over the radio spectrum, where the process is dependent on ministerial approval. In Indonesia, its implementation produces different treatment in terms of the use of radio frequency spectrum, some are accompanied by divestment another are not. This process is not through the mechanism of the secondary market spectrum. Based on the practice of secondary market spectrum in other countries, it provides business certainty to operators and gives maximum value in the spectrum. In this research, secondary market policy for Indonesia is proposed, where evaluation and analysis will be done using regulation impact analysis (RIA). Three proposed secondary market alternatives include to keep current conditions (alternative 1), secondary market mechanism with direct trading (alternative 2), and broker mechanism with independent supervision (alternative 3). Assessment will be done using cost base analysis (CBA) based on plus minus implications (PMI), and decision will be made based on multi criteria analysis (MCA). According RIA based analysis, the results obtained that alternative 3 provides many advantages compared to 2 other alternatives. The impact of benefits of alternative 3 includes increasing spectrum requirements, frequency spectrum structuring, the need for legal certainty and equality of the process of transferring frequency spectrum.