Telkomsel wins out in KemKominfo 2.3GHz auction; focus now turns to 2.1GHz award

18 Oct 2017

Telkomsel (Telekomunikasi Selular), the mobile arm of PT Telekomunikasi Indonesia (Telkom), has reportedly secured 30MHz of 2300MHz spectrum in the tender process being held by Ministry of Communications and Information Technology (MCIT, known locally as KemKominfo). The Telkom subsidiary offered IDR1.007 trillion (USD75.17 million) for the frequencies on offer, beating off rival bids from Hutchison 3 Indonesia (Tri), Indosat Ooredoo, XL Axiata and PT Smart Telecom. The reserve price had been set at IDR366.72 billion with a bid bond of IDR146.69 billion. IndoTelko quotes Secretary General of the Center for Industrial Policy Studies and Telecommunications Regulation of Indonesia-ITB (PIKERTI-ITB), M Ridwan Effendi, as saying that the new frequencies mean that the operator now ‘has the flexibility of infrastructure to serve customers optimally,’ thanks to the increased capacity afforded by the spectrum which will also allow it to be more efficient in how it uses it. The PIKERTI-ITB says that Telkomsel already holds 7.5MHz in both the 850MHz and 900MHz bands, as well as 22.5MHz at 1800MHz and 10MHz at 2100MHz, to serve a customer base of about 178 million Telkomsel users.

In the wake of its failure to secure the precious 2300MHz frequencies, XL Axiata says it will instead turn its attention to winning spectrum on offer at 2100MHz – noting that under the terms of the licence tender, the winner of the 2300MHz spectrum (Telkomsel) will not be allowed to participate. The application process for 2.1GHz frequencies is slated to take place five working days after the result of the 2.3GHz band has been announced. KemKominfo will sell off two blocks of radio frequency bands, each with 2×5MHz (FDD) bandwidth in the range 1970MHz-1975MHz paired with 2160MHz-2165MHz (Block 11), and 1975MHz-1980MHz paired with 2165MHz-2170MHz (Block 12). The reserve price has been set at IDR296.74 billion with a bid bond of IDR118.70 billion. As it stands, domestic operators holding 2100MHz frequencies are Tri (10MHz), Telkomsel (15MHz), Indosat Ooredoo (10MHz) and XL Axiata (15MHz).