Application Analysis of Bandwidth License Fee for Point-To-Point Microwave Link Radio Communication System

The frequency spectrum fee formula should reflect the economic value of the frequency band and promote its efficient usage. The economic value of the frequency depends on several parameters, such as the bandwidth of the occupied frequency band, the location of the frequency spectrum, the service area (the size and population density of the covered area), and the type of service provided. Bandwidth license fees are one of the frequency spectrum fee formulas that also considering the economic value, but this formula does not apply to point-to-point microwave links. Bandwidth license fees are only applied for cellular communication application, so it is necessary to analyze how it applies to point-to-point microwave links to provide a proportional cost for each frequency band considering economic and technical value. The application of bandwidth license fee to point-to-point microwave links was analyzed using an analytical model approach from the ITU-R Report SM.2012-4 on all registered point-to-point microwave links. The results shows that the lowest frequency (4400- 5000 MHz) have the highest spectrum fees, with correlation coefficient of average apparatus fee against population density is 0.35 and correlation coefficient of average bandwidth license fee population density is 0.55.