Beauty Contest for Additional 3G Bandwidth
Indonesian Government will launch another 3G tender for a block of frequency (5MHz) using a beauty contest on April this year. For your information, all 5 3G operators (Telkomsel, Indosat, XL, HCPT and NTS) currently just have 5 MHz bandwidth. Previous Minister of Communication and Information Technology, Mr. Sofyan Djalil has already given a clue that some times in the future, government will provide additional bandwidth for the operator who really need it. And now, that promise is fulfilled.
Current Minister of Communication and Information Technology, Mr. Mohammad Nuh said that additional bandwidth for 3G is really needed in accordance with subscriber increments. Current channels are so crowded so that operator needs additional channel to maintain the quality of service.
Although using a beauty contest tender, government still retain the price as release on last tender (2006), that is IDR 160b ( US$15m) per 5 MHz. Telkomsel has agreed with that price while other operators bid for a lower price, i.e: PT Excelcomindo Pratama Tbk IDR 40b, PT Indosat Tbk IDR 30b, PT Natrindo Telepon Seluler IDR 20miliar, and HCPT just bid for IDR 12b.
As can be seen from the price bid, Telkomsel will won the tender. If Telkomsel win, Telkomsel will have a big opportunity to outperform the Indosat for the data service. For your information, Indosat is the leading operator on providing mobile data services.
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