Telkomsel wins 2.3-GHz spectrum auction
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Indonesian state-owned mobile operator Telkomsel has emerged as the winner of an auction for 30 MHz of 2.3-GHz spectrum with a bid of 1 trillion rupiah ($73.9 million).
The company beat out four other operators, including XL Axiata and Indosat, to secure the spectrum.
Telkomsel will need to pay an upfront fee of double its bidding price – 2 trillion rupiah – within 10 days as well as an annual license fee.
With the acquisition of the additional spectrum Telkomsel is expected to be in a position to expand its network capacity by 30%, the report states.
Telkomsel is Indonesia’s dominant mobile operator with 178 million subscribers and 150,000 base stations across the nation. It is the mobile subsidiary of state-owned operator PT Telkom.
Under government regulations Telkomsel will now be unable to bid during the next spectrum auction, scheduled to commence next week. Indosat, XL Axiata and Hutchison 3 Indonesia are expected to participate in the auction for two blocks of 2.1-GHz spectrum.
Questions & Answers
Q.How much did Telkomsel bid for the 2.3-GHz spectrum?
How much did Telkomsel bid for the 2.3-GHz spectrum?
Telkomsel won the auction with a bid of 1 trillion rupiah, which is equivalent to $73.9 million. They will need to pay an upfront fee of double this amount.
Q.Which other companies did Telkomsel compete against in the auction?
Which other companies did Telkomsel compete against in the auction?
Telkomsel beat out four other operators for the spectrum. These included XL Axiata and Indosat, though the other two bidders are not named in the report.
Q.What are the immediate financial obligations for Telkomsel after winning the auction?
What are the immediate financial obligations for Telkomsel after winning the auction?
Telkomsel must pay an upfront fee of 2 trillion rupiah, double its bidding price, within 10 days. Also, an annual license fee will be required.
Q.What is the expected benefit for Telkomsel's network capacity following this acquisition?
What is the expected benefit for Telkomsel's network capacity following this acquisition?
With this additional spectrum, Telkomsel is anticipated to be able to expand its network capacity by 30%. This helps a company with 178 million subscribers.
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