Refining Spectrum Fee to Increase Utilization Efficiency by Adopting ITU-R SM 2012-2 Case Study: Cellular Service in Indonesia

Ismail Ismail, Suhono H. Supangkat, Hendrawan Hendrawan, Basuki Y. Iskandar
2010 ITB Journal of Information and Communication Technology  
The spectrum fees called as "Biaya Hak Pengguna Frekuensi" (BHP-F) for cellular services in Indonesia are currently calculated based on apparatus, proportionally to the number of transceiver stations and radio channels. Unfortunately, the formula cannot promote the efficiency of frequency spectrum efficiency. ITU-R SM 2012-2 recommended the spectrum fee formula that can promote the efficiency; Administrative Incentives Price (AIP) also claims to promote the effectiveness of the radio spectrum
more » ... he radio spectrum utilization. By combining ITU-R SM 2012-2 with AIP, the frequency fee formula can promote not only the efficiency but also the effectiveness of spectrum utilization. This paper will explain and discus the modification of ITU-R SM 2012-2 with AIP in designing the spectrum fees for cellular services in Indonesia. Spectrum is a band of electromagnetic frequencies and often used to refer the radio frequency spectrum. This band is divided into several sub-bands; the ITU"s International Radio Regulations allocate the spectrum from 9 kHz to over 275 GHz for a range of different usage [1]. As a resource spectrum is a non-homogeneous matter and has unique characteristics; different frequencies have different characteristics hence specific frequencies are more suitable for certain usage. In general, greater bandwidth transmits more information for a given period. The quality of communication can negatively be affected by interference, i.e. decreasing voice quality or data rates connection lost/ elimination in worst cases. However, some spectrum is more susceptible to the interference than others. Interference between frequencies partly depends on the technology being used and the use of more sophisticated equipment can improve receiver performance [2] . There are four parties that have interest in spectrum management: (i) the regulator that manages and allocates the usage of spectrum, (ii) the
doi:10.5614/itbj.ict.2010.4.1.1 fatcat:ejgw4mcjfna43pt2y2kuvlh5uy