Indonesia’s Ministry of Communication and Information (MCI), known locally as Kementerian Komunikasi dan Informatika (KemKominfo), has reportedly begun the formal selection process to award 30MHz of radio frequencies in the 2.3GHz band (2360MHz-2390MHz) for use by mobile network operators (MNOs). IndoTelko cites KemKominfo head of public relations Ferdinandus Setu as saying: ‘The selection is part of the [MCI’s] efforts to support digital transformation in the economic, social and governmental sectors, because there are still radio frequency blocks which currently have not been assigned radio frequency band users.’ In short, the allocation is expected to increase MNOs’ network capacity, improve service quality and help accelerate the move towards the implementation of 5G in the country.
Acting under provisions set out in Article 11 of the ‘Regulation of the Minister of Communication and Information Technology Number 9 of 2018 concerning Operational Provisions and Licensing Procedures for Radio Frequency Spectrum Usage’, the government intends to award three 10MHz blocks of spectrum. It confirmed that only MNOs already holding a Cellular Mobile Network Operation License will be able to participate in the process.
The paper notes that in 2017 Telkom subsidiary Telkomsel invested IDR1 trillion (USD70.6 million) for an additional 30MHz block of spectrum at 2.3GHz. It estimates that if it seeks a further 30MHz block, it might have to ‘pay twice the upfront fee and frequency BHP’ from the price it paid in 2017.