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. (003)