Indonesian operators have partnered with the Ministry of Communication and Informatics (MCI) to establish a task force that aims to expedite the deployment of 5G technology. The task force's main objective is to develop a strategy that addresses technical, technological and financial challenges. Specifically, they are focusing on resolving the financial obstacles related to the Non-Tax State Revenue (PNBP) generated from the allocation of 5G frequencies to mobile network operators (MNOs).
Currently, operators are required to make PNBP payments for spectrum usage, which are categorized as regulatory charges. These charges amount to approximately 11% to 12% of their annual revenue (or 14% to 15% if additional frequencies are managed). MNOs argue that in order to maintain profitability, these charges should be capped at 10% or lower.
This request has been included in the MCI's ‘Draft Ministerial Regulation (RPM) concerning the Use of Radio Spectrum in the 700MHz and 26GHz Frequency Bands’. The ministry aims to release 90MHz of spectrum in the 700MHz band, previously allocated for analogue broadcasting, as part of its initiative to utilize the ‘digital dividend’ spectrum. Additionally, the 26GHz frequency band, which is currently unused, can be utilized for mobile broadband purposes.
