Mon, 25 Jul 2005

Frequency allocations only need software, adjustment

Leony Aurora, The Jakarta Post, Jakarta

The planned relocation of Code Division Multiple Access (CDMA) operators currently operating on third generation (3G)-assigned frequencies should not involve a massive change in infrastructure, a Telkom executive and a telecommunications observer say.

Vice president of state telecommunications firm PT Telkom Garuda Sugardo said over the weekend that all base transceiver stations (BTS) for the company's fixed-wireless service Flexi could operate at both 800 Megahertz (MHz) and 1,900 MHz frequencies.

"Most of our customers use dual-band phones, so they do not have to change their handsets," Garuda told The Jakarta Post, adding that the relocation would mainly require software and engineering adjustments.

Minister of Information and Telecommunications Sofyan Djalil has said that all CDMA operators using a bandwidth of between 1,920 MHz and 1,980 MHz should move to make way for 3G technology in the country.

Flexi, which has some 1.7 million customers in Jakarta, West Java and Banten and uses 3G-assigned frequencies, and Indosat's StarOne, with some 100,000 users, will be the most affected by the new policy.

Primasel and Wireless Indonesia, two companies that have licenses to operate in the 3G frequency band but do not have any subscribers, will also need to move.

"We will have to move to 800 MHz," said Garuda. "This band is already full with other operators."

Most recent CDMA handset models can operate both in 800 MHz and 1,900 MHz. Older models, like Sanex SC 7080, are single-band at 1,900 MHz.

Garuda remains optimistic the frequency alteration can be accomplished without any problems, as the government has said it will take place in five years. "We have enough time to prepare for it."

An executive at the Indonesian Infocom Society, Mas "Wig" Wigrantoro, said two to three years would be sufficient to complete the relocation process.

"The tender for the frequency band that is currently being used by Flexi can go ahead before the relocation is completed," said Mas Wig.

"The tender winner has to be willing to wait a while before operating in the frequency," he added.

3G technology, a far more advanced level of the currently used second-generation technology, offers faster data transfer and substantially enhanced quality. It enables real-time video streaming and video conferencing through cellular phones, among other services.

The government is trying to rearrange the 3G-frequency allocation following requests for bandwidth slots from the country's major players, which argue that companies that have secured spectrums have failed to show progress.

PT Cyber Access Communications and PT Natrindo Telepon Seluler/Lippo Telecom were granted 3G-licenses and allocated frequency spectrums two years ago. However, these companies have yet to operate the technology.

A new tender for 3G bandwidth slots is expected to be held at a later date, with operators getting 5Mhz in the first disbursement. The government expects to reap Rp 5 trillion (US$515 million) in revenue from the tender.

Mas Wig said the government must shoulder some of the financing burden for the relocation program. "The government gave the license to Flexi to operate in 1,900 MHz," he said. "It should be fair and bear some of the costs."