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BWA Reserved Priced Announcement Postponed

May 23, 2009 By: Syahrial Ali Category: General

As schedule on 2nd clarification meeting on May 15th 2009, the BWA reserved price will be announced on May 22nd, 2009. The reserved price concerning 2 block of BWA spectrum namely in block 13 (2360-2375MHz) and  block 14 (2375-2390MHz). However up until now, May 23rd, no announcement has been made. Public relation has apologized this condition and informed that the delay is just because of technical reason only. However, this delay will have an impact to the whole schedule. The whole processes was previously scheduled to finish in the 3rd week of June, 2009.

The reserved price calculation is more complicated than the 3G reserved price on 2006 tender. The main reason is 3G is nationwide while BWA is regional license. In BWA lciense, there are 15 regions, so there will be 15 reserved prices. Hence, the reserved price shall be calculated for every region.

The BWA spectrum licenses were cheaper than 3G licenses in many countries. In May 2005, Singapore conducted 140 MHz of frequency spectrum auction in 25 slots and awarded 6 BWA licenses in 2.3 GHz and 2.5 GHz frequency bands. IDA as regulator collected far less money than the S$100 million for a 3G license (2001, 20MHz FDD) compare to e.g. MobileOne 4 lots (about 20MHz)  for S$2.1 million, Pacific Internet 5 lots (about 25MHz) for S$2.27 million.

Indonesia 3G reserved price was IDR 100b for 5 MHz (FDD) for nationwide license. The BWA license will be 15 MHz (TDD) and it will divided into 15 regions. How low can it be? Just wait.

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