Telkomsel Sets Minimum Threshold for 5G Expansion
Denpasar (ANTARA) — PT Telkomsel has set a minimum 5G device penetration threshold of around 20 per cent in an area before expanding its fifth-generation network there.
“Our threshold is around 20 per cent. Once that minimum is reached, we will continue expanding 5G,” Telkomsel president director Nugroho said at the Bali Tech Week forum in Sanur, Denpasar, on Monday.
The policy is one of the company’s considerations in ensuring that network investment is aligned with market readiness and the potential use of its services.
He said network construction requires careful investment feasibility calculations, including an assessment of the internal rate of return (IRR).
According to Nugroho, 5G network expansion must take into account not only technological needs but also the number of customers who already own compatible devices.
“Without an adequate user base, network capacity risks not being used optimally,” he said.
The company’s analysis has identified around 107 cities as suitable targets for 5G investment.
The locations were selected based on market readiness, so that network development can deliver tangible benefits to customers.
Nugroho stressed that the selective approach did not mean Telkomsel was reluctant to expand 5G. The company remains committed to developing the technology nationwide, but will do so in stages while taking investment efficiency into account.
He also said customer expectations of network quality were changing. Whereas internet experience had previously been measured largely by download speeds, upload capacity had now become an important need as well.
Activities such as WhatsApp calls and live streaming require sufficient upload capacity.
According to Nugroho, 5G can support these needs more effectively than previous technologies.
Connectivity quality is also becoming increasingly important for supporting the use of artificial intelligence (AI).
For this reason, 5G development is seen as part of preparing networks to support increasingly complex digital services.
Nevertheless, Nugroho emphasised that investment decisions must continue to be based on actual needs and user readiness.
“Building a network without careful calculations risks leaving available capacity underused,” Nugroho said.
Alongside connectivity development, he indicated that Telkomsel was preparing other initiatives beyond its network business.
Nugroho did not provide details of the programme, saying it would be announced soon.