3G licences awarded to Telkomsel, Indosat and Excelcomindo

8 Feb 2006

The Indonesian government has awarded PT Indosat, PT Excelcomindo and Telekomunikasi Selular (Telkomsel), licences to operate 3G mobile networks in the country. PT Telekomunikasi Indonesia (Telkom) and PT Bakrie Telecom did not secure a concession however, having failed to meet the minimum bid requirement of IDR100 billion (USD10.87 million) for the ten-year licence. Indosat agreed to pay IDR160 billion, while Telkomsel and Excelcom tendered IDR218 billion and IDR188 billion respectively.

The Indonesian authorities have already issued 3G concessions to PT Natrindo Telepon Selular, which is 51% owned by Malaysia’s Maxis Communications, and PT Cyber Access (CAC), a 60%-owned subsidiary of Hutchison Telecommunications International. Natrindo secured its concession in 2003 followed by CAC a year later, however neither has launched UMTS services as the necessary infrastructure has still to be put in place.