Telkomsel, the largest mobile operator in Indonesia, beat four rivals to win 30MHz of 2.3GHz spectrum with a bid of IDR1.01 trillion ($75 million).
According to the Ministry of Communications and Information Technology (MCIT), Telkomsel is required to pay an upfront fee of around double its bidding price – IDR2 trillion – within ten days along with an annual licence fee, Nikkei Asian Review reported.
Latest data from GSMA Intelligence shows the mobile unit of state-owned Telkom Indonesia had 180 million connections at end-September, giving it a 44 per cent share of the country’s total mobile connections. Some 30 million of those connections were 4G.
The ministry is scheduled to hold a second auction for two 10MHz blocks of spectrum in the 2.1GHz band next week. Indosat Ooredoo, XL Axiata and 3 Indonesia are all expected to make bids, but Telkomsel is barred from participating after its recent win.
MCIT announced in February it would hold tenders for unused spectrum in the 2.1GHz and 2.3GHz bands and name winners by end-June, but the date slipped following delays in releasing rules covering the bidding process.