stantonfriedman.com – As Indonesia continues its 5G rollout, the efficient allocation and utilization of mid-band spectrum have become critical to achieving optimal network performance and meeting growing data demands. Mid-band frequencies, particularly those between 1 GHz and 7 GHz, offer a balance of coverage and capacity, making them ideal for 5G services.
Current Spectrum Allocation in Indonesia
Currently, Indonesia has assigned approximately 360 MHz of mid-band spectrum for mobile services. However, studies indicate that an average of 2 GHz of mid-band spectrum will be necessary by 2030 to fully realize 5G capabilities. This substantial gap highlights the need for strategic spectrum management to support the nation’s digital transformation goals.
Challenges in Mid-Band Spectrum Allocation
One significant challenge is the current use of the 3.5 GHz band—a core 5G frequency—in Indonesia. This band is predominantly occupied by fixed satellite services (FSS), including television broadcasting and banking communications. Repurposing this spectrum for 5G requires careful coordination to mitigate interference and ensure a smooth transition.
Strategies for Spectrum Refarming
To address these challenges, several strategies can be considered:
- Reallocation of Existing Bands: Transitioning underutilized or legacy spectrum bands, such as those allocated for 2G or 3G services, to 5G can optimize spectrum use. This process, known as spectrum refarming, involves repurposing frequency bands to support newer technologies.
- Phased Release of the 3.5 GHz Band: Implementing a gradual approach to releasing the 3.5 GHz band, starting with urban areas where demand is highest, can facilitate early 5G deployment while addressing coexistence issues with existing services.
- Exploring Alternative Bands: Considering the allocation of other mid-band frequencies, such as the 2.6 GHz band, for 5G use can provide additional capacity. However, this may require refarming from current users, including satellite broadcasting services.
Economic Implications of Spectrum Pricing
The pricing of 5G spectrum also plays a crucial role in network deployment lafondabarranco. The GSMA has cautioned that high spectrum prices in Indonesia could result in a potential loss of USD 14 billion in GDP between 2024 and 2030. Competitive and fair pricing mechanisms are essential to encourage investment and expedite 5G adoption.