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Frequency allocations only need software, adjustment

| Source: JP

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."

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