A Proposal for Formulating a Spectrum Usage Fee for 5G Private Networks in Indonesian Industrial Areas
The Indonesian spectrum usage fees—the so-called Biaya Hak Pengguna Frekuensi Izin Pita Frekuensi Radio (BHP IPFR)—are currently calculated using a formula determined by the three following main parameters: the frequency band, the country’s economic parameter, and the nationwide population. As spect...
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-05-01
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| Series: | Informatics |
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| Online Access: | https://www.mdpi.com/2227-9709/9/2/44 |
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| author | Alfin Hikmaturokhman Kalamullah Ramli Muhammad Suryanegara Anak Agung Putri Ratna Ibrahim Kholilul Rohman Moinul Zaber |
| author_facet | Alfin Hikmaturokhman Kalamullah Ramli Muhammad Suryanegara Anak Agung Putri Ratna Ibrahim Kholilul Rohman Moinul Zaber |
| author_sort | Alfin Hikmaturokhman |
| collection | DOAJ |
| description | The Indonesian spectrum usage fees—the so-called Biaya Hak Pengguna Frekuensi Izin Pita Frekuensi Radio (BHP IPFR)—are currently calculated using a formula determined by the three following main parameters: the frequency band, the country’s economic parameter, and the nationwide population. As spectrum usage fees are proportional to the width of the bandwidth, the current formula would result in an extremely high price when applied to 5G-mmWave private networks, with the cost burden being a direct consequence for the service operator. In this paper, we propose the formulation of a new spectrum usage fee for 5G-mmWave private network implementation in Indonesian industrial areas. To do so, we evaluate the current formula, adopt the framework offered by the ITU-R SM.2012-5 (06/2016), and use an industrial reference index—the Indonesia Industry Readiness Index 4.0 (INDI 4.0) score. We test the proposal by applying the new formula to calculate the 5G-mmWave private network spectrum usage fee for the Jakarta industrial area. The result shows that the new formula gives a lower spectrum usage fee than the current formula, which benefits 5G-mmWave private network service operators. Such savings can be regarded as a government subsidy for the service operators to use in various ways in the industry, providing further economic benefits. Using the input–output model, we prove that despite the proposed new formula brings a lower spectrum usage fee, resulting in a loss in state income, it will lead to a much greater positive impact on the national economic output. Applying the new formula will eventually have a multiplier effect on various sectors and encourage digital economic growth and national digital transformation, especially for vertical industries in Indonesia. This study may serve as a guideline or initial reference for Indonesian policymakers and service operators for applying the CAPEX and OPEX cost of using the new spectrum for 5G-mmWave private network service implementation and estimating the economic multiplier for 5G-mmWave private network service deployment in industrial areas. It can also be used as a benchmark case for other countries to apply spectrum usage fees for private networks in industrial areas. |
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| institution | Directory Open Access Journal |
| issn | 2227-9709 |
| language | English |
| last_indexed | 2024-03-09T23:31:10Z |
| publishDate | 2022-05-01 |
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| series | Informatics |
| spelling | doaj.art-5ebed5d673d84158a1368eb7c7b0b5ee2023-11-23T17:09:23ZengMDPI AGInformatics2227-97092022-05-01924410.3390/informatics9020044A Proposal for Formulating a Spectrum Usage Fee for 5G Private Networks in Indonesian Industrial AreasAlfin Hikmaturokhman0Kalamullah Ramli1Muhammad Suryanegara2Anak Agung Putri Ratna3Ibrahim Kholilul Rohman4Moinul Zaber5Department of Electrical Engineering, Universitas Indonesia, Depok 16424, IndonesiaDepartment of Electrical Engineering, Universitas Indonesia, Depok 16424, IndonesiaDepartment of Electrical Engineering, Universitas Indonesia, Depok 16424, IndonesiaDepartment of Electrical Engineering, Universitas Indonesia, Depok 16424, IndonesiaSchool of Strategic and Global Studies, Universitas Indonesia, Jakarta Pusat 10430, IndonesiaUNU-EGOV, United Nations University Operating Unit on Policy-Driven Electronic Governance, 4810-445 Guimarães, PortugalThe Indonesian spectrum usage fees—the so-called Biaya Hak Pengguna Frekuensi Izin Pita Frekuensi Radio (BHP IPFR)—are currently calculated using a formula determined by the three following main parameters: the frequency band, the country’s economic parameter, and the nationwide population. As spectrum usage fees are proportional to the width of the bandwidth, the current formula would result in an extremely high price when applied to 5G-mmWave private networks, with the cost burden being a direct consequence for the service operator. In this paper, we propose the formulation of a new spectrum usage fee for 5G-mmWave private network implementation in Indonesian industrial areas. To do so, we evaluate the current formula, adopt the framework offered by the ITU-R SM.2012-5 (06/2016), and use an industrial reference index—the Indonesia Industry Readiness Index 4.0 (INDI 4.0) score. We test the proposal by applying the new formula to calculate the 5G-mmWave private network spectrum usage fee for the Jakarta industrial area. The result shows that the new formula gives a lower spectrum usage fee than the current formula, which benefits 5G-mmWave private network service operators. Such savings can be regarded as a government subsidy for the service operators to use in various ways in the industry, providing further economic benefits. Using the input–output model, we prove that despite the proposed new formula brings a lower spectrum usage fee, resulting in a loss in state income, it will lead to a much greater positive impact on the national economic output. Applying the new formula will eventually have a multiplier effect on various sectors and encourage digital economic growth and national digital transformation, especially for vertical industries in Indonesia. This study may serve as a guideline or initial reference for Indonesian policymakers and service operators for applying the CAPEX and OPEX cost of using the new spectrum for 5G-mmWave private network service implementation and estimating the economic multiplier for 5G-mmWave private network service deployment in industrial areas. It can also be used as a benchmark case for other countries to apply spectrum usage fees for private networks in industrial areas.https://www.mdpi.com/2227-9709/9/2/445G-mmWavespectrum usage fee5G private networkinput–output modeleconomic impact of 5G |
| spellingShingle | Alfin Hikmaturokhman Kalamullah Ramli Muhammad Suryanegara Anak Agung Putri Ratna Ibrahim Kholilul Rohman Moinul Zaber A Proposal for Formulating a Spectrum Usage Fee for 5G Private Networks in Indonesian Industrial Areas Informatics 5G-mmWave spectrum usage fee 5G private network input–output model economic impact of 5G |
| title | A Proposal for Formulating a Spectrum Usage Fee for 5G Private Networks in Indonesian Industrial Areas |
| title_full | A Proposal for Formulating a Spectrum Usage Fee for 5G Private Networks in Indonesian Industrial Areas |
| title_fullStr | A Proposal for Formulating a Spectrum Usage Fee for 5G Private Networks in Indonesian Industrial Areas |
| title_full_unstemmed | A Proposal for Formulating a Spectrum Usage Fee for 5G Private Networks in Indonesian Industrial Areas |
| title_short | A Proposal for Formulating a Spectrum Usage Fee for 5G Private Networks in Indonesian Industrial Areas |
| title_sort | proposal for formulating a spectrum usage fee for 5g private networks in indonesian industrial areas |
| topic | 5G-mmWave spectrum usage fee 5G private network input–output model economic impact of 5G |
| url | https://www.mdpi.com/2227-9709/9/2/44 |
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