Ministry to audit 3G license holders
Ministry to audit 3G license holders
The Jakarta Post, Jakarta
Faced with problems of ineffectiveness in firms currently holding
3G licenses, the Ministry of Information and Communications is
undergoing an audit on the telecommunication companies.
"We are auditing the companies on their efficiency and trying,
overall, to work out the problems in frequency allocations
thoroughly," Minister of Information and Communications Sofyan A.
Djalil said last week, adding that the audit should be completed
within two months.
The government had granted PT Natrindo Telepon Seluler/ Lippo
Telecom and PT Cyber Access Communications (CAC) -- an affiliate
of Thailand's leading cellular operator Telecom Orange Asia -- 3G
licenses and allocated frequency spectrums in 2003.
To date however, the two companies are not yet operational.
3G is a third generation, advanced technology which would
enable cellular subscribers to enjoy triple-play technology such
video streaming, video conferencing through cellular phone, in
addition to much faster data transfer.
At present, the country's mobile phone operators apply the
less-advanced 2.5G technology.
The country's largest cellular-phone firm Telkomsel was also
granted a license to run a 3G-based radio network in October last
year, but has yet to receive a frequency bandwidth slot to
transmit data as there is not enough frequency bandwidth left.
However, it has received a frequency gap to run trials, which
the company said would be launched in the middle of the year.
Since the 3G license is for trial only, Telkomsel will still
have to wait for an operating license and frequency bandwidth
from the Ministry of Communications.
Separately, another telecommunication firm PT Indosat has also
expressed interest in entering the new technology market.
"We will prepare the infrastructure if there are possibilities
of getting a license," Indosat corporate secretary Sutrisman
said.
Elsewhere, after the ministry had finished the auditing and
rearranged the frequency allocation, Sofjan suggested, without
elaborating, that the 3G license tender process be revised.
Still, according to the Telecommunications Regulatory Body
(BRTI) -- the agency that regulates the industry together with
the ministry -- the previous tenders had been conducted in
accordance with existing regulations and the companies that were
granted the licenses were the best at that time.
"There were 23 companies that joined the bidding and they were
shortlisted to five before the winner was announced," a BRTI
member, Suryadi Azis, said.
Meanwhile, the ministry is also figuring out how to better
arrange frequency allocations for operators wishing to enter the
3G technology market. Sofjan said the ministry would come up with
options to resolve such problems soon.
Experts have said that the need to rearrange the frequency
allocation to make it more efficient thus allowing more industry
players to come in is crucial, so as not to risk losing millions
of dollars in potential annual revenue and the opportunity to
provide more access to the technology for the public.
In Australia, the license fee for a five-megahertz frequency
allocation for third generation (3G) cellular technology is set
at US$80 million, while in the United States the fee ranges from
between $10 million and $20 million. (003)