Techno-Economic Analysis of 5G Implementation at Frequency 2.3 GHz for Bandung City

Abstract

The rapidly increasing need for information and communication triggers the high mobile data traffic. In addition, mobile data traffic has also increased along with the emergence of various types of services and new technologies. One of which is the presence of 5G (5 <sup xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">th</sup> Generation) technology, which offers various advantages, and is expected to play an essential role as a trigger for transforming the role of mobile technology in society's lives. This research was conducted to determine the readiness of 5G implementation in Indonesia through techno-economic analysis for dense urban areas with a case study of Bandung City at a frequency of 2.3 GHz. The technical analysis consists of a link budget calculation, path loss calculation, and the number of gNodeB calculations. The propagation model used in this study is based on 3GPP TR 38.901, namely Urban Macro (UMa) and the outdoor environment. Then from the economic side, there are calculation of Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PP), and Profitability Index (PI). The results of the research from a technical analysis, show that the number of gNodeB that must be met is 55 for downlink and 35 for uplink communication. Based on the economic analysis, the results obtained NPV of Rp39,242,898,383, IRR of 8.90%, PP of 8 years 7 months, and PI of 1.12. The results obtained show that the implementation of 5G is feasible.