Rudiantara hints at delay in 3G frequency tender

18 Nov 2015

IndoTelko reports that the Indonesian Minister of Communications and Information Technology (MCIT) Rudiantara has suggested that the proposed auctioning of additional 3G frequencies could now be delayed from Q4 2015 until next year. If so, the postponement could have an adverse impact on the ministry’s non-tax revenues for the current financial year. Kemenkominfo, as the agency is also known locally, was aiming to generate income of IDR14 trillion (USD1.02 billion ) in FY 2015, a sizeable portion of which was to have come from the release of two blocks of 2100MHz 3G frequency (blocks 11 and 12).

As it stands, four mobile network operators – Telkomsel, XL, Indosat and Hutchinson 3 Indonesia (Tri) – hold frequencies in the 2100MHz band. In total, 60MHz of bandwidth was originally distributed via twelve blocks, each of 5MHz. Tri holds a 10MHz allocation (blocks 1 and 2), Telkomsel has rights to use blocks 3, 4, and 5 (15MHz), Indosat holds blocks 6 and 7 (10MHz), and XL has blocks 8, 9 and 10 (15MHz). Blocks 11 and 12 are now empty, the legacy of XL Axiata’s takeover of Axis and the former agreeing to relinquish the blocks under the deal. XL, however, has hinted that it could look to bid for blocks 11 and 12, apparently prompting Rudiantara to consider a rethink on the tender timeline.