Ministry told to organize frequency allocation

Ministry told to organize frequency allocation

The Jakarta Post, Jakarta

The government needs to rearrange telecommunications frequency
allocation, which many say is inefficient at present, or risk
losing millions of dollars in potential revenue each year,
according to an expert.

"Organizing the frequency spectrum allocation is not easy, but
if it is ignored, there is a possibility of losing frequency
bands that could have been used by more operators," chairman of
the Information and Telecommunications Technology Society Giri
Suseno said on Wednesday.

Giri cited a previous study, conducted with the assistance of
the USAID, which showed that telecommunications frequency here
had been misallocated.

Citing the efficient frequency use in Australia as an example,
the study revealed that the optimal use of a width could generate
millions of dollars in annual proceeds for the state coffers.

In Australia, a five-megahertz frequency allocation for third
generation (3G) cellular technology is set at a licensing fee of
US$80 million, while in the United States the fee ranges from
between $10 million and $20 million.

"Aside from its business potential, the rearrangement would
give more people the opportunity to enjoy telecommunications
technologies, as a result of more operators coming in," Giri
added.

The authority to determine and organize telecommunications
frequency falls with the Ministry of Information and
Telecommunications.

In response, the ministry plans to set up a review team to
evaluate the frequency spectrum allocation. "We will wait for the
result of the evaluation before rearranging the allocations,"
J.B. Kristiadi, the ministry's secretary, said.

Meanwhile, a member of the Telecommunications Regulatory Body
(BRTI) -- which oversees the industry with the ministry -- said
that the body would also evaluate the use of existing frequencies
already awarded to cellular operators.

"We will approach operators holding frequency licenses that
are not yet operational, and set a deadline for the evaluation of
their performance," Suryadi Azis said.

The government has granted PT Natrindo Telepon Seluler/ Lippo
Telecom and PT Cyber Access Communications (CAC) -- an affiliate
of Thailand's leading cellular operator Telecom Orange Asia -- 3G
licenses and allocated frequency spectrum in 2003.

However, the two companies are not yet operational.

"The regulator would allow nine month to two years --
depending on negotiations with the companies -- for the operators
to start performing," Azis said.

"Or else, we will revoke their frequency licenses," he said.
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