GSA expresses concern over Indonesia's 3G future

August 30, 2005

GSA - the Global mobile Suppliers Association, has submitted its views on the frequency allocation for 3G/IMT-2000 services in Indonesia. GSA's main concern is for the successful development of the mobile communications industry, to benefit consumers, enterprises, teledensity and the economy as a whole. The path to 3G would be severely compromised if existing limited-mobility WLL services, which utilize technology operating in the US PCS 1900 band, are not relocated outside of the internationally agreed 3G/IMT-2000 spectrum.

Alan Hadden, President, GSA said: "Any allocation of PCS 1900 spectrum would block the internationally-agreed 3G evolution path. The IMT-2000 core band uplink and the PCS 1900 band downlink are almost fully overlapping with each other. The interference issue cannot be managed. The PCS-1900 allocation should be avoided at any cost. The 3G evolution is a market reality for operators across the world today."

In its response to the Directorate General Post and Telecommunication (DGPT), Indonesia, consultation on the re-arrangement of the frequency allocation for 3G/IMT-2000 services, GSA urges the Indonesian authorities not to continue with a mixed band strategy, saying that the ITU core band plan will ensure the optimal and most efficient spectrum allocation for 3G services in Indonesia. WLL customers can migrate to full mobility services enabled by very cost-effective GSM networks. With the latest network solutions, it is possible to run a profitable operator business at ARPU levels of 3-5 USD.

Spectrum is identified by ITU for 3G systems within which a 'core band' for terrestrial services of 1920 - 1980 MHz paired with 2110 - 2170 MHz is allocated (i.e. 2 x 60 MHz). This band plan is adopted by virtually all countries of the world for the deployment of 3G/IMT-2000 systems. Any misalignment between Indonesia and other countries would make communication more difficult and costly. This would in the longer term have an adverse effect for all parties, as people would not in the future be able to access their 3G services while roaming. Better communication will bring all countries closer together, and facilitate investment, which is why it is in everyone's interest to adopt the same frequency allocation.

The latest survey by GSA confirms 82 WCDMA networks in commercial service in 37 countries (using IMT-2000 core band spectrum), and 186 WCDMA device models launched in the market by 26 suppliers. There are over 30 million UMTS/WCDMA subscribers globally, and this figure is growing rapidly. From 2005 onwards WCDMA operators can upgrade systems, with software only, to support HSDPA/HSUPA (High Speed Downlink/Uplink Packet Access). With these enhancements users can expect a true wireless broadband experience. In the first phase - the downlink direction, data speeds of 14.4 Mbps peak bit rates (typical user experience 1 - 4 Mbps) are expected to be achieved.

To upgrade GSM networks to 3G, most of the existing network assets can be reused and only a small number of additional sites may need to be deployed to achieve a good coverage. Also, the WCDMA supply market operates at high volumes and is extremely competitive, enabling low deployment cost. Further, WCDMA improves spectral efficiency and reduces the cost of capacity for both voice and data. These three factors ensure that 3G/WCDMA presents a sound business case for operators.