Impact of Revocation of Fixed Wireless Access 800 MHz for CDMA Operators

The presence of the Regulation of the Minister of Communication and Information regarding the Arrangement of the 800 MHz Radio Frequency Band has had a massive impact on the presence of CDMA operators in the country. Practically the 800 MHz Fixed Wireless Access (FWA) frequency can no longer be used by CDMA operators, while the remaining frequency is only the cellular version owned by Smartfren. Telkom Flexi and Indosat StarOne will stop their operations, while Bakrie Telecom (Esia) is reported to have submitted a proposal to operate using Smartfren cellular frequencies.

As mentioned by the Director General of Information and Postal Equipment Resources of the Ministry of Communication and Informatics Muhammad Budi Setiawan to IndoTelko, "The main impact of the issuance of the Permenkominfo Structuring 800 MHz is that there is no longer a FWA license. All technology is neutral and cellular."

Telkom and Indosat are already planning to use this frequency to improve 3G quality on the 900 MHz network. Telkom Flexi subscribers, totaling 4,1 million people, have already prepared a new place di Telkomsel with the name "As Flexi", while the remaining 120 thousand StarOne subscribers will mobile phone subsidy to convert as a GSM subscriber.

What's interesting is how Bakrie Telecom and Smartfren have survived.

According to Committee Member of the Indonesian Telecommunications Regulatory Agency (BRTI) M Ridwan Effendi, as quoted from IndoTelko, "Later on, Bakrie Telecom's assets will be handed over to Smartfren for equity participation. Bakrie Telecom can still market its cellular products, but it will not be burdened with rights fees. The use of frequency (BHP) because it is only a service provider."

The frequency that Smartfren has is safe because from the start it has used a cellular scheme. To get past the CDMA technology stagnation phase, Smartfren is reportedly starting to explore the possibility upgrade to LTE technology. One of the Smartfren network users will be Bakrie Telecom.

Bakrie Telecom plans to "ride" the Smartfren network with concepts such as Mobile Virtual Network Operators (MVNO). Using this concept, Bakrie Telecom no longer needs to have obligations to the government because it does not have its own network. They simply pay the rental fee for using the network to Smartfren and offer it to consumers through its own promotional package. Bakrie Telecom's SLJJ license has now been revoked and only the international direct dial (IDD) license remains.

The conversion of CDMA operators like this has been eagerly awaited. To optimize the existing network, including welcoming the growth of LTE technology, consolidation is needed to ensure that each operator has adequate frequency and bandwidth. After this consolidation, cellular frequency owners in Indonesia will be more ideal with the composition Telkomsel, XL Axiata, Indosat, Tri Indonesia, and Smartfren.

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