Spectrum Fee License Analysis on 3.5, 26, and 28 GHz Frequency For 5G Implementation in Indonesia

Abstract

Cellular technology that is currently being planned to release is 5G technology that will be released in 2022 in Indonesia by using frequencies at 3.5, 26, and 28 GHz. To maintain economic stability in Indonesia, especially in the field of non-tax revenue, it is needed to examine how much the Spectrum Fee is paid by the operator to the government. The formula of Bandwidth Spectrum License has set by the Government through the Ministry of Communications and Informatics. To analyze the suitability of the spectrum fee values and operators revenue the writer readjusts the value of normalization factor (K) where this value is given by 4 options which are 100%, 75%, 50%, and 25% of the K values obtained. As a result, The calculation of Spectrum Fee using 100% of K factor resulting Rp. 1,6 Trillion for the mid-band, while for the high-band resulting Rp. 6,4 Trillion. Spectrum fee is reduced in proportion to the decrease in the K Factor used. so that the K factor of 25% resulting Rp. 400 Billion for the mid-band, while for the high-band resulting Rp. 1,6 Trillion. In general, the use of high-band results in higher spectrum fees, this is due to the use of bandwidth that is 4 times higher than the mid-band and the higher K factor value.