Operators call for cap to revenue charge for 5G lift

Operators call for cap to revenue charge for 5G lift

Indonesia operators partnered with the Ministry of Communication and Informatics (MCI) to set up a task force to deliver new ideas and incentives to accelerate 5G deployment. 

CommsUpdate reported via IndoTelko, that the task force is aiming to create a strategy to ‘balance technical, technological and financial issues’. Specifically targeting financial red tape surrounding the Non-Tax State Revenue (PNBP) derived from the 5G frequencies that will be allocated to MNOs.

In the current framework, operators include spectrum PNBP payments as ‘regulatory charges’ which equates to around 11% to 12% of annual revenue (14%-15% if there are additional managed frequencies). 

MNOs argued that to maintain profit this charge needs to be capped at 10% or below, which is being requested in the MCI’s ‘Draft Ministerial Regulation (RPM) concerning the Use of Radio Spectrum in the 700MHz and 26GHz Frequency Bands’. 

The ministry is reportedly freeing up 90MHz of ‘digital dividend’ spectrum in the 700MHz band that was previously used by analogue broadcasting. Meanwhile, the 26GHz frequency band is currently not in use and can be tapped into for mobile broadband. 

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