Indonesia’s MoCI gets 3G spectrum sale process moving

21 Dec 2012

Indonesia’s Ministry of Communication and Information Technology (MoCI) is set to start its auction of two blocks of third-generation spectrum in the 2100MHz band, the Jakarta Post reports. Citing ministry spokesperson Gatot S Dewabroto, the report notes that, while the selection process is now underway, the auction itself meanwhile is tabled to take place in March 2013.

Amid suggestions that a single operator could actually walk away with both of the blocks that up for grabs, a number of the country’s major players have indicated an interest in the frequencies. Alex J. Sinaga, president director of Telkomsel, has reportedly confirmed that his company plans to take part in the auction, while Indosat is also examining the possibility of bidding, though Adrian Prasanto, a spokesperson for the operator, said that it would first have to examine the costs involved.

As previously reported by CommsUpdate, in September 2012 it was reported that the MoCI was planning to hold a tender to auction so-called ‘channel 11’ and ‘channel 12’ 3G frequencies that month. The sale of the 3G channel frequencies had initially been postponed at the end of 2011, since when it had been rescheduled no fewer than three times. The ministry is expected to set a minimum reserve fee of IDR200 billion (USD20 million) for blocks of spectrum in the channel 11 and channel 12 auction – marking a hike on the previous price of IDR160 billion-IDR175 billion; the reserve prices are, however, expected to exclude the carriers’ up-front fees and annual fee.