Telkomsel wins 2.3-GHz spectrum auction

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.