Analysis Of The Frequency Spectrum Renting Business Model On The Implementation Micro Operator In Indonesia

Abstract

The Fifth Generation of cellular network technology or 5G is considered to be the one of the technologies which could provide inclusive connectivity for the specific content in the private indoor area with the technology of small cell. The development of indoor small cell needs a particular infrastructure with a highly cost investment which is make it difficult for Mobile Network Operator (MNO). The small-scale operator could be used to overcome that problem which called as Micro Operator. Micro Operator is an operator which focusing the business on the development of local small cell network by provided a network service which could be customized with customer needs. The purpose of this research is giving the recommendation for the frequency spectrum renting scheme with Value V4 business framework, capacity planning with 2.3 GHz at industrial area, Karawang International Industrial City (KIIC), economic investment calculation and normative legal research. This research shows that the spectrum sharing scheme is more possible to be implemented in Indonesia based on the technical assessment and good return on investment with IRR 14.06%. Beside that for the business models of micro operator is supported by the regulations there are Law of the Republic of Indonesia 36/1999 for the establishment of telecommunications operations, Regulation of The Government of The Republic of Indonesia 53/2000 for spectrum frequency allocation and Law of the Republic of Indonesia 11/2020 Article 33 for spectrum sharing scheme.