Government Prepares Regulations for IoT Devices, Equalization of Certification Prices Becomes an Issue

The Ministry of Communication and Information Technology will soon sign a regulation regarding IoT devices, as a follow-up to Draft Ministerial Regulation (RPM) regarding the use of radio frequency spectrum based on class permits for 4G LTE Advance Pro technology which was published in early April 2019.

The Director General of Resources and Equipment of Post and Information Technology (Directorate General of SDPPI) Kemkominfo Ismail explained, in making this regulation the government tried to remain generic, not referring to just one technology, so that it could be applied to any technology that was already preparing for the IoT.

He detailed that this rule will regulate device certification, one of which includes pricing. Sensors and Gateway will also be included in the components of the device to be certified. The price of certification will be relatively not much different from ordinary radio equipment.

"Rules will be signed in the near future, hopefully no until the middle of the year because it is almost final," he explained, Tuesday (23/4).

Previously, the RPM stipulates that telecommunication tools or equipment operate on the radio frequency spectrum based on class permits.

They are Wireless local area network (WLAN), remote device (Short Range Devices), Low Power Wide Area Noncellular (LPWA Noncellular), Dedicated Short Range Communications (DSRC), LAA. Also, tools operating in radio frequency bands are used based on similar class permits according to the level of technology and characteristics.

4G LTE Advance Pro, better known as 4.9G or one notch below 5G, uses the network License Assisted Access (LAA). This network utilizes unlicensed frequencies in the 5.150-5.350 MHz and 5.725-5.825 MHz ranges. So that the impact of non-cellular operator players can immediately implement IoT more massively.

The discourse of equalizing the price becomes an issue

Responding to the discourse on the certification price, the government actually involved the Indonesian IoT Association for joint discussions so that there was no final decision. Deputy Chairman of the IoT Association Andri Yadi regrets and is burdened if the government decides to equate the price of device certification with ordinary radios.

His party once made a short simulation that the price of certification for one startup could cost up to Rp. 25 million. The calculation does not follow the market price when sold to consumers.

"They cannot be equated [price]. Take, for example, a 4G cell phone that sells bars for up to Rp. 10 million, but speaking of IoT devices it can reach up to Rp. 400 million. Because it contains a lot of technology, such as short range use bluetooth and WiFi," he said.

Qualcomm Indonesia Country Manager Shannedy Ong added that although the company had an indirect impact considering Qualcomm is a technology provider, in the end there would be an indirect impact if the discourse was realized because the company is included in the ecosystem.

"We are part of the ecosystem so we have to work together with industry and associations to think about it." win-win solution. Don't let regulations hinder you because we want IoT to be accelerated. Indonesia must advance to step Next, there is a new solution, commercialize it, and consumers can benefit from it," said Shannedy.

Waiting for 5G frequency verdict

This IoT technology can actually be run over a 4G network, but it would be more perfect if it was supported by 5G technology. The government has not determined what frequency will be used, because it is waiting for the 2019 World Radio Conference in Egypt which will take place in October 2019. This is a four-year conference held by the ITU (International Telecommunications Union).

Ismail explained, at this conference, the official frequency used for 5G networks will be decided globally. The government will be oriented there so that it is world wide platforms, not specifically for Indonesia only. It is hoped that this will make device prices cheaper and make it easier for operator players who want to invest in 5G.

"The WRC is a four-year conference to determine the frequency band of a new technology. So we are waiting for the event, it will roughly determine the 5G frequency after the event," he explained.

Broadly speaking, the government has estimated that there are three network spectrum blocks, namely: lower, middleand upper. For upper, he guarantees no problems, because the frequencies are available and not used for 26 GHz and 28 GHz.

While for middle, running on the 3,5 GHz frequency already used by satellites. So that the choice is coexisting with satellite so that it can be used with 5G. There has been no further discussion about this because the government has to talk more deeply about satellite owners, including Telkom and Indosat Ooredoo.

The determination of the 5G frequency is critical enough to support the IoT ecosystem in Indonesia. Andri added that the frequency is the initial basis for the players before testing the device. How sophisticated is the device that has been made but if it can't be connected because of the absence of frequency it will be useless.

Shannedy agreed with this. He explained that IoT and 5G have a close relationship. There are some use case that can be handled by IoT with the help of a 5G network that is very impactful for the industry.

Telecom operators and OEMs (Original Equipment Manufacturer) on a global scale have partnered with technology companies to create many new solutions, based on IoT and 5G, in the agriculture, smart city and transportation industries.