Indonesia to hold limited spectrum
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The Indonesian government plans to hold a limited tender for unused spectrum in the 2.1-GHz and 2.3-GHz bands by the middle of the year.
Communications and informatics minister Rudiantara has announced that the government expects to issue the terms of the tender process by the end of March, and to announce the winner by mid-year.
Only existing operators will be entitled to participate in the limited tender, the minister said.
The 2.1-GHz band is used by operators including Telkomsel, Indosat Ooreedoo, XL Axiata and Hutchison 3 Indonesia for 3G services, while the 2.3-GHz band is used for 4G wireless broadband services in parts of the country.
Plans to reallocate the unused capacity in the 2.1-GHz band returned by Axis Telecom in 2014 following its merger into XL Axiata have been in the works since 2015, but the process has been delayed by technical and other difficulties.
According to the report, only half of the unused 30 MHz of capacity in the 2.3-GHz band will be allocated.
Indonesian operators, facing a spectrum crunch in major cities, have responded enthusiastically to the announcement, and are urging the government to ensure there are no further delays.
Questions & Answers
Q.Which companies will be able to bid for the available spectrum?
Which companies will be able to bid for the available spectrum?
Only operators currently active in Indonesia will be permitted to participate in the limited tender for the unused spectrum. This restriction applies to both the 2.1-GHz and 2.3-GHz bands.
Q.What is the expected timeline for this tender process?
What is the expected timeline for this tender process?
The government plans to issue the terms of the tender by the end of March and aims to announce the successful bidder by the middle of the year. The tender itself is set to be held by mid-year.
Q.Why is the 2.1-GHz band spectrum currently available for tender?
Why is the 2.1-GHz band spectrum currently available for tender?
The 2.1-GHz spectrum became available after Axis Telecom returned its unused capacity in 2014, following its merger with XL Axiata. Plans for reallocating this have been in progress since 2015.
Q.How much of the available 2.3-GHz band capacity will be allocated?
How much of the available 2.3-GHz band capacity will be allocated?
The tender process will only allocate half of the 30 MHz of unused capacity that is currently available in the 2.3-GHz band. This band is used for 4G wireless broadband services.
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