Swedish telecom giant Ericsson has emphasized that Indonesia must allocate more mid-band spectrum for optimal 5G deployment. “5G services are closely tied to mid-band spectrum (1-6 GHz), and the available spectrum in Indonesia is currently not enough to roll out 5G optimally,” said Andres Vicente, SVP and Head of Ericsson Southeast Asia, Oceania, and India.

Refarming Required to Support Operators

Speaking at the Ericsson booth during MWC 2025 in Barcelona, Vicente added, “Therefore, the Indonesian government needs to allocate or refarm more mid-band spectrum for mobile operators.”

Infrastructure Subsidies Can Ease 5G Deployment

Vicente explained that in addition to refarming, the government should consider measures to help operators deploy 5G more easily. One approach is providing subsidies related to 5G infrastructure, particularly passive components.

Subsidy Needs Include Tower and Power Costs

These subsidies could cover the costs and equipment for towers used for base transceiver stations (BTS), as well as electricity costs consumed by the towers. “These subsidies are important because 5G requires a significant investment, and this will allow mobile operators to reach return on capital more quickly,” Vicente stated. “Normally, the return on capital is slow for mobile operators.”

Spain's 5G Support Model Highlighted

Vicente pointed to Spain as an example, where the government currently subsidizes 5G tower costs and infrastructure-related equipment.

Role of Government in Building 5G Ecosystem

He further added that the Indonesian government can support 5G deployment by introducing an ecosystem related to 5G. “The government also plays an important role in regulating the 5G ecosystem in Indonesia, including supporting various startups that will later provide 5G-based services,” Vicente said.

PHOTO: EXPANSION

This article was created with AI assistance.