Govt plans another tender on 3G licensing<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
The government plans to repeat the tender process in July for
\ncompanies wishing to be granted a license for advanced third
\ngeneration (3G) cellular technology.<\/p>\n
The bid process is part of its efforts to modify the
\ntelecommunications frequency allocations to make them more
\ninefficient.<\/p>\n
Maximizing the frequency allocation will enable the country to
\nreap at least Rp 3 trillion (US$319 million) in proceeds from the
\nlicensing fees alone, which later can be used to install standard
\ntelephone lines down to the village level in several parts of the
\ncountry that still have no access to telephones.<\/p>\n
"We want to maximize the use of the 3G frequency bands so it
\ncan be used by more operators. Proceeds from these bands will be
\nused for development in rural areas," said Minister for
\nInformation and Telecommunication Sofyan Djalil at the State
\nPalace on Wednesday.<\/p>\n
Sofyan said the tender would be held next month after
\nPresident Susilo Bambang Yudhoyono signed a government regulation
\non the minimum licensing fee, in addition to the completion of an
\naudit on the use of existing frequencies awarded to cellular
\noperators.<\/p>\n
The government has granted PT Natrindo Telepon Seluler\/Lippo
\nTelecom and PT Cyber Access Communications (CAC) -- an affiliate
\nof Thailand's leading cellular operator Telecom Orange Asia -- 3G
\nlicenses and allocated a frequency spectrum in 2003.<\/p>\n
However, the government has become frustrated at the lack of
\nprogress by the two companies in making use of the licenses.<\/p>\n
It was not immediately clear how the companies would react to
\nthe government's new plan.<\/p>\n
With 3G technology, cellular operators can provide multimedia
\nfacilities at faster speeds and with much more data than the
\noutmoded cellular technology now being used here, which is
\nclassified as 2.5G. The 3G technology will also allow users to
\nsend, receive and download audio and video files much faster.<\/p>\n
Sofyan said that there were 45 megahertz (Mhz) of 3G frequency
\ncurrently available, and that would be on offer in the upcoming
\ntender, with each operator allocated between 5 Mhz and 10 Mhz.<\/p>\n
Sofyan, however, refused to disclose the cost of the
\nfrequency. For comparison purposes, a 5-Mhz frequency allocation
\ncosts approximately US$80 million in Australia and between $10
\nmillion and $20 million in the United States.<\/p>\n
"Proceeds from the licensing tender will be used to help
\npeople living in remote villages by providing them with fixed-
\nline of satellite-based telephone systems," he pledged.<\/p>\n
Based on the ministry report, at present, less than 5 percent
\nof the country's 220 million people can enjoy access to fixed-
\nline phones.<\/p>\n
Sofyan also said that the ministry would also order existing
\noperators, which currently use the wide-band Code Division
\nMultiple Access (CDMA) technology not to use the 3G frequency in
\ntheir operations since it would disrupt the frequency of the 3G
\noperators.<\/p>\n
"I will ask all cellular operators with CDMA technology not to
\nuse the 3G frequency. They need to comply with the government
\nregulation or face sanctions," warned Sofyan, while adding that
\nthe sanctions could include the revocation of the CDMA operating
\nlicense.<\/p>\n
CDMA technology allows the use of fixed-wireless service -- a
\nphone service with limited cellular mobility designated areas
\nthat were first introduced in this country about two years ago.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-plans-another-tender-on-3g-licensing-1447893297",
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"sponsor": "Okusi Associates",
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