Indonesian Spectrum Valuation of 5G Mobile Technology at 2600 MHz, 3500 MHz, and 26 GHz and 28 GHz

Abstract

Spectrum valuation is necessary to help regulators set up new technology regulations to overcome specific conditions, such as area-particular treatment in industrial estates, to support vertical industries with wider spectrum bands and various frequencies. This paper delivers the results of a study on spectrum band valuation at various frequencies to speed up Indonesia's Industry 4.0. This work utilised a case study of industrial estates in Jakarta, Indonesia's capital, and research on the impact of frequency bands at 2600 MHz, 3500 MHz, 26 GHz and 28 GHz on three factors of an economic engineering model: Factor 1, the engineering side to maximise fifth generation (5G) cellular coverage; Factor 2, the economic side for a financial aspect in terms of capital expenditures (CAPEX) and operating expenditures (OPEX) per square kilometre and Factor 3, the economic side for spectrum value per MHz per population. This paper will be helpful for both mobile network operators (MNOs) and regulators. For MNOs, this study provides perceptions about spectrum valuation methods and provides data on the value of various frequencies in 5G. For regulators, it provides perceptions of the economic value of various frequencies in 5G, which aids in the assignment of costs for spectrum licenses and the establishment of reserve prices and intended budgets for future spectrum auctions. This work found that using 26 GHz/28 GHz (mmWave) for 5G services necessitates a greater investment in infrastructure than using 2600 MHz and 3500 MHz (midband). In the midband and mmWave bands, the population density has a major impact on the spectrum valuation for 5G.