Telkomsel and Indosat Get 3G Additional Bandwidth
Telkomsel and Indosat, the first and second largest cellular telecommunication in Indonesia get their additional bandwidth for 3G services from the regulator. Telkomsel and Indosat are two out of five 3G operators which agrees to regulator offered for 5MHz additional bandwidth. Hence, both operators have 10 MHz 3G bandwidth. Meanwhile, three other operators, Excelcomindo Pratama (XL), Natrindo Telepon Seluler (Axis), and Hutchison CP Telecom (Three/3), didn’t agree with the price offered by government.
With these additional bandwidth, both Telkomsel and Indosat will enhance their data services for their customers. Indosat was the leader in data services with more than 2 millions subscribers. Telkomsel claims that they have more than 8 millions 3G active subscribers with 1.2 million of them are data services subscriber with the product called flash. Their target is about 5-6m subscribers at the end of 2009. Additional bandwith also means they both are far ahead of their competitors, XL, HCP and Axis.
Why other operators do not want to pay for additional bandwidth?
There are several reasons for this, such as their current bandwidth is not fully occupied, too expensive, etc. The price offered is same with 2006 tender price, i.e: IDR 160b per year. In my opinion, the main reason is there is no urgency to add more bandwidth for these operators as the current bandwidth is still sufficient enough to serve their subscribers.
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