Indosat Ooredoo, Tri and XL Axiata submit bid documents for 2.1GHz spectrum

26 Oct 2017

Indonesia’s Ministry of Communications and Information Technology (MCIT, known locally as KemKominfo), has confirmed that three mobile network operators (MNOs) – Indosat Ooredoo, Hutchison 3 Indonesia (Tri) and XL Axiata – submitted bid documents to participate in the auction of two blocks of unallocated 2100MHz spectrum. KemKominfo is selling 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 (USD21.9 million) with a bid bond of IDR118.70 billion.

As it stands, domestic MNOs holding 2100MHz frequencies are Tri (10MHz), Telkomsel (15MHz), Indosat Ooredoo (10MHz) and XL Axiata (15MHz). Telkomsel, however, is not permitted to participate in the upcoming auction by dint of it recently winning 30MHz of additional spectrum at 2300MHz. Under the terms of the licence tender, as the winner of the 2300MHz spectrum Telkomsel is not allowed to participate this time around. Further, another operator – Smartfren – failed to submit a bid, with its President Merza Fachys saying that his company will not participate in the 2.1GHz auction because it wants to provide greater opportunities for the other three players to compete. ‘We want to be good friends to all,’ he reportedly joked.

KemKominfo Head of Public Relations, Noor Izza, confirmed that the three MNOs have put their hats into the ring and says the next phase will see a documents verification process by the auction committee 25-27 October), followed by the start of the auction proper (29 October).