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)