Government to re-run 3G frequency band auction

7 Apr 2009

The government of Indonesia reportedly plans to repeat an auction of additional frequency for 3G mobile telecoms services in a tender due to be held in mid-April. According to local newspaper Antara News, the country’s Communications and Informatics Minister, Mohammad Nuh, says the additional frequency allocation of 5MHz for 3G is needed to meet growing demand for advanced mobile services. The minister added that high demand threatens to outstrip the 3G operators’ ability to maintain levels of service quality unless they are afforded additional bandwidth. In an earlier tender, Telkomsel – Indonesia’s largest cellco by subscribers – was the sole bidder for additional spectrum, paying the minimum reserve of IDR160 billion (USD14.24 million) set by the government. Other participants, such as Indosat and Excelcomindo, submitted offers below the minimum level.