The Indonesian government has awarded PT Indonesian Satellite, PT Excelcomindo Pratama and unlisted PT Telekomunikasi Selular, or Telkomsel, licenses to operate third-generation, or 3G networks, State Minister for Information and Communication Sofyan Djalil said on Wednesday.
Third-generation cellular technology offers subscribers high-speed data transmission services such as video streaming, fast downloads, live traffic updates and even home surveillance services.
The tender for the 3G network was attended by fivetelecommunication companies. PT Telekomunikasi Indonesia and PT Bakrie Telecom failed to win the tender.
Based on "the willingness to pay" requirement, Sofyan said both Telkom and Bakrie Telecom failed to meet the requirement."The minimum bid was set at Rp 100 billion (US$10.87 million)," he added.
Indosat offered to pay Rp 160 billion to get the license, while Telkomsel bid Rp 218 billion and Excelcom tendered Rp 188 billion.
The usage of the license is for ten years, Sofyan added.
Indonesia previously granted 3G licenses to cellular phone operator PT Natrindo Telepon Seluler, which is 51 percent owned by Malaysia's biggest cellphone company Maxis Communications Bhd.and PT Cyber Access, 60 percent owned by HutchinsonTelecommunications International Ltd.
However, both Natrindo, which received its 3G license in 2003, and Cyber Access, which obtained a license in 2004, have yet to offer 3G services to their subscribers, as the necessary network infrastructure has still to be put in place.
Analysts said the delay in implementing the 3G network is mostly due to the huge funding required to develop the business.
February 08, 2006