ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Business

Indonesia's Telkomsel wins spectrum for $74 million

Mobile unit of state-owned company cements dominance in archipelago

JAKARTA -- The mobile unit of Indonesia's state-owned telecommunications company, Telekomunikasi Indonesia, won a spectrum for 1 trillion rupiah ($74 million) as it aims to extend its dominance in the country. 

The Ministry of Communications and Information Technology on Tuesday announced Telekomunikasi Selular, or Telkomsel, as the winner of an auction of a 30-megahertz block on the 2,300 megahertz band. The move will expand Telkomsel's network capacity by 30%, according to Lucky Ariesandi, an analyst at Yuanta Securities.

Mandiri Sekuritas, a local brokerage firm, called the bidding price "fair." Under Indonesian regulations, Telkomsel will have to pay an "upfront fee" of 2 trillion rupiah, or double its bidding price, within 10 days of being declared the winner, aside from the annual license fee.

The high bid by the country's largest telecom company underscores its mission to further expand its services across Indonesia, as it spearheads the government's policy of boosting the digital economy. The company, which is partly owned by Singapore Telecommunications, already dominates the country's mobile telecommunications market of 178 million subscribers as of June. It has 150,000 base transceiver stations across the archipelago, more than its two closest rivals --  Indosat and  XL Axiata -- combined.

Attention will now shift to the auction of two blocks of a 2,100-megahertz band, slated for Oct. 24. Government regulations prevent Telkomsel from bidding on those blocks. Indosat, controlled by Qatar's Ooredoo, is expected to compete against XL Axiata, a unit of Malaysia's Axiata Group, and smaller rival Hutchison 3 Indonesia for those blocks.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media