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Tender of 3G Additional Frequency Remains Held?

20:19:13 | 29 Sep 2012
Tender of 3G Additional Frequency Remains Held?
Ilustrasi (Dok)
Angkasa Pura 2
JAKARTA (Indotelko) – Ministry of Communication and Information Technology (Ministry) confirmed about tender of 3G additional frequency will still be held this year although one participant was lodged in bankruptcy case.

The participant mention above is Telkomsel which have been claimed bankrupt by the Commercial Court in mid-September. Telkomsel was sued by PT Prima Jaya Informatika because they owed about USD5.3 billion. Currently, Telkomsel has appealed to the Supreme Court.

“If it delayed too long, the target of non-tax revenues will only reach Rp10 trillion from previous expectations about Rp11 trillion. Those two blocks, which will be released later at the tender, has revenue of Rp1 trillion. It doesn’t mean will lost completely but probably will be shifted to 2013,” Minister Tifatul Sembiring said.

Based on data, Ministry targets deposit of non-tax revenue of 2012 about Rp11 trillion or up to 0.3% from 2011 target which only Rp10.7 trillion. Ministry plans to released block 11 and 12 at the frequency of 2.1 GHz. The price of one block is expected to contribute to non-tax revenue about USD544 billion. This figure consists of twice upfront fee and 20% of the auction price (first year of Frequency Usage Fee). Meanwhile, if there is one operator who bought those two blocks at once it expected to reach total Rp1.088 trillion. So far there are 5 companies who are interested to bid the frequency. They are Telkomsel, Indosat, XL, Axis, and Tri Hutchison.

Poor Telkomsel

Furthermore Tifatul admitted the absence of Telkomsel on the tender is very unfortunate. “Actually is very unfortunate for them as a state-owned company not able to participate. Until now we haven’t open any enrollment yet. We still waiting,” he said.

He explained, until today Ministry still like to hear more detailed of explanation from Telkomsel itself related to the law case. Telkomsel threatened not able to participate in this selection because they are under court supervision. Rules do not allow any participant involved in legal case. It is stated clearly on Minister Decree about Procedures of Additional 3G Frequency of 2.1 GHz Tender, section 18 paragraph 1, point G-3, Participant is not under supervision of the court, not bankrupt, or business activity is not being suspended. Also the chairman or Managing Director, acting on behalf of the company, is not serving criminal sanctions.

Researcher from Indonesia ICT Institute, Heru Sutadi is very pessimistic this tender will be completed this year if Telkomsel is still included. “Telkomsel appeal process likely to be difficult, maybe it will still going on 90 days ahead. If the tender announcement begins in mid-September, it usually takes 2 months. It means the tender process will be finish on November. Imagine when it will be finished if they run the tender on October,” he predicts.

He suggested, Ministry can take realistic step by only releasing one block first, so that other participants will not be disappointed. The reason Ministry should take this step because the need of additional frequency is not only for Telkomsel but many telco companies need it.

“It will be fair for the industry. However, Indonesia has commitment to the World Trade Organization (WTO) against free trade and equal treatment for all business,” Heru said. (ss/id)

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