5G NR License Fees on 3.5 GHz Frequency for Internet of Things Applications: A Case Study of Surabaya Smart City

The use of frequency needs to be regulated, because frequency is one of the limited resources. Limited frequency resources have an impact on operators, because not all operators can use it. Therefore, it is necessary to apply a frequency spectrum license fee. The determination of license fees is governed by Regulation Number 19 of 2005 from the Minister of Communication and Information Technology, alongside Government Regulation Number 80 of 2015. The 3.5 GHz frequency strikes a balance between coverage and capacity, making it an ideal choice for facilitating 5G connectivity. This frequency band is frequently utilized for Internet of Things (IoT) applications. The advanced capabilities of 5G technology enable it to handle numerous simultaneous connections, making it particularly well-suited for IoT-based solutions. The research method used is sensitivity analysis to determine how effective the calculation results obtained by changing the existing parameters with new variables, namely the new Ib and Ip values. Based on calculations and changes in Ib and Ip parameters, Ip parameter has little effect on the BHP ISR. Ip change only affects 9% of the existing BHP ISR, while Ib is 391%. The results of this study provide important recommendations regarding the more ideal Ib and Ip values, taking into account the cost efficiency and stability of the telecommunications industry.