Govt to offer additional frequencies to 3G operators
Govt to offer additional frequencies to 3G operators
The Jakarta Post, Jakarta
The government plans to offer additional frequencies to companies
that will operate cellular services based on advanced third
generation (3G) technology if they can develop their businesses.
Minister of Communications and Information Sofyan Djalil said
on Friday that the government would allow companies holding 3G
licenses to add another 5 megahertz (MHz) to their existing
frequencies, of between 5 MHz to 10 MHz, if they succeeded in
developing the service.
Currently, PT Natrindo Telepon Seluler/Lippo Telecom and PT
Cyber Access Communications (CAC), an affiliate of Thailand's
leading cellular operator Telecom Orange Asia, have obtained
licenses to operate 3G-based cellular services.
Two other cellular operators, Telkom Flexi and Indosat Star
One, have not yet obtained the licenses, but they have provided
wide-band Code Division Multiple Access (CDMA) services using 3G
frequencies.
The communications ministry said earlier it would reopen a
tender for 3G operations next month in a move to modify the
telecommunications frequency allocations so that the frequencies
could be used more efficiently.
The ministry estimated after that the country would reap up to
Rp 5 trillion (US$520.83 million) in revenues by maximizing the
allocation of the potential 60 MHz frequencies.
The extra revenue, they have said, would be used to install
standard telephone lines in villages currently without access to
any sort of telecommunications across the country.
With 3G technology, cellular subscribers will be able to enjoy
"triple-play" services such as video streaming, video
conferencing through cellular phones, in addition to a much
faster data transfer.
At present, there are 45 MHz of 3G frequency available, which
will be offered in the upcoming tender, where each operator will
get 5 Mhz in the first disbursement.
"We will offer them options of an additional 5 MHz if they
show improvements within a year," said Sofyan, adding that there
would be annual auditing process to examine the companies'
performances.
He said if the companies failed to show improvements over the
first two-year period, the options would be given to other firms.
"Those that failed to make improvements will be subject to
sanctions to be mentioned in a regulation," he said, without
elaborating further.
Sofyan also said that the government required every operator
using the 3G frequencies to pay 0.75 percent out of its revenue
to the government as a Universal Service Obligation (USO).
"Operators using the frequencies including radio stations will
have to pay 0.75 percent out of its income," he said, adding that
the government planned to collect the USO starting in July after
the president issues the decree. (001)