Follow Up Exchange on the Management and Operations of 5G

The successful and sustainable rollout of 5G networks hinges on effective spectrum management. Common challenges faced by many countries during their transition to 5G is the lack of interest from operators, driven by high cost of equipment and spectrum licenses necessary for 5G network. To address these challenges, Germany has developed a comprehensive 5G Strategy, while Indonesia is focused on accelerating the rollout of 5G networks to support the country’s Industry 4.0 transformation. The exchange brought together policymakers, industry leaders, associations, and academics to share insights and best practices on overcoming these challenges.

5G Rollout Development in Germany and Indonesia

In 2019, the German Federal Ministry for Digital and Transport (BMDV) published its 5G Strategy for Germany. Mr. Tom Spiesecke, Deputy Head at the German Federal Network Agency (BNetzA) explained that the strategy aims to accelerate the 5G deployment by providing clear guidelines. The significant points in the strategy are the approach Germany takes in navigating the high cost of the equipment and the assignment of exclusive spectrum bands for 5G. Germany focuses on the technology and service-neutral principles which enables existing mobile network infrastructure with 5G features to be utilised for 5G networks. Additionally, Germany allocates the 3.6 GHz band as the pioneer band for 5G network which supports enhanced mobile broadband, enhanced machine-type communications and ultra-reliable low-latency communication for private and public networks.

In contrast, Indonesia, is still in the early stages of transitioning to 5G network. Mr. Adis Alifiawan, Team Leader of Spectrum Planning for Fixed and Land Mobile Service at the Indonesian Ministry of Communications and Digital Affairs, discussed the country’s ongoing efforts to release spectrum bands for 5G and deploy necessary infrastructure. Due to Indonesia’s unique geography, 5G coverage and use remain limited. To address these challenges, the government plans to conduct coexistence trials for fixed satellite services to complement 5G and apply a technology- and service-neutral principle to maximize network efficiency.

5G Rollout on the Ground: Challenges and Opportunities

On the ground, Mr. Raka Pramudya, Technology Expert from XL Axiata, highlighted Indonesia´s substantial market potential and the significant benefits 5G can bring to the country. With a thriving digital economy and over 100% network subscriber penetration, Indonesia stands to gain greatly from 5G connectivity. However, challenges such as limited spectrum availability, intense competition among internet providers, and high infrastructure costs hinder progress. As a result, the revenue from telecommunications is often insufficient to cover the high costs of infrastructure deployment. Mr. Pramudya emphasized that a clear roadmap for 5G, along with additional spectrum allocations across low, mid, and high bands, would ensure a more strategic and comprehensive rollout. This would help telecom providers, and the government fully align on the deployment of 5G infrastructure.

Outcomes and Next Steps

During the exchange, both countries agreed on the importance of continued collaboration and dialogue to address the ongoing challenges of 5G rollout. The discussions highlighted the need for strategic spectrum management, clearer roadmaps for 5G development, and enhanced international cooperation between stakeholders. Looking ahead, the next steps will involve ongoing discussions between Indonesia and Germany, as well as between industry players and policymakers, to refine strategies for 5G deployment. The exchange underscored the shared commitment to overcoming obstacles and achieving a successful, sustainable 5G rollout that will drive economic growth and technological advancement in both countries.