Regulation Simplicity

By: Hazim Ahmadi

Indonesian regulator plans to simplify the existing licenses regarding to the current number of operators. Too many operators has been making the market in high competition which drive the price falling down. If two years ago the price of voice in Indonesia was the highest price in Asia, today the price is the lowest one.

As you all might know that Indonesia owns more than 10 operators today. Actually those operators are not cellular licenses only but also limited mobility or Indonesian call it as fixed wireless access (FWA).  Unlike cellular license that users can easily move from an area to other areas, in limited one users can only use it in certain area unless they activate their numbers by sending a registration first to operator in order to be allowed in other area.

The FWA infrastructure is technically able to accomodate full mobility like the cellular one. It is a matter of license. Therefore some cellular executives ask regulators to treat FWA as well as cellular. They claimed it because the eficient license in consolidation and konvergence cellular era is cellular. They also criticised the FWA license as powerless one and insist to eliminate it.

The cellular license belongs to six operators those are Telkomsel, Indosat, Excelcomindo Pratama, Hutchison Indonesia, Mobile 8 and Natrindo. The FWA license holders are TELKOM, Indosat, Bakri Tel., Sampoerna Telecom and Sinar Mas, and Mobile 8. It is common just because they compete in the same market so the new comer use the price strategy.

The frequency spectrum of the both licenses are mostly close each other. For instance the cellular operators use it in 900 MHz and 1800 MHz and the FWA operators utilize spectrum in 800 MHz and 1900 MHz. But the price of spectrum according to existing license is different which pursue to the number of transceiver and power transmission. The regulator also plans to implement the license based on spectrum in future.


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