Mobile Operators Need A Lot Of Money

For Next Year, Here’s Why

Jakarta, CNBC Indonesia – The government plans to auction three frequencies at once next year. The three are 700 Mhz, 2.6 Ghz, and 26 Ghz which are likely to be auctioned in the first quarter of 2025.

Director General of SDPPI of the Ministry of Communication and Information Ismail explained that both 700 Mhz and 26 Ghz are ready. However, in the end they will be auctioned together with 2.6 Ghz, according to the operator’s request.

“The spectrum that is ready is 700 MHz and 26 GHz. Actually, we are ready. However, the operators sent us a letter like that. To request that the spectrum be auctioned together with 2.6 GHz,” said Ismail in Jakarta, Thursday (12/9/2024).

According to him, the operators have an economic calculation. It is likely that if the three frequencies are auctioned together it will be much better.

“According to the schedule, 2.6 GHz will end at the end of the year. That means we can start early 2025 early first quarter, we hope,” he said.

Asked whether the price of the three frequencies will be cheaper, he said that his party will calculate it according to the price calculation. Not to make the auction cheaper, but it will be made in such a way as not to burden the operators too much.

Incentive options are being discussed. One of them is related to the payment time and the option to pay in installments.

“Yes, it can be paid in installments, the time can be arranged and so on. So that the cash flow is maintained for its development,” said Ismail.

Previously, 700 MHz and 26 GHz were planned to be auctioned in mid-2024. However, it was finally postponed, Ismail explained that there was a request from the operators to postpone it.

“The operators asked to postpone it. They asked not to rush,” he explained when met last July.

SOURCE : CNBC INDONESIA