TLKM - Telkomsel wins 2.1Ghz auction

Subsidiary of Telkom Indonesia (TLKM), Telkomsel has been awarded a 2.1Ghz sprectrum after outbidding XL Axiata (EXCL). Management said that the spectrum would be utilized to optimize its 4G and 5G networks capacity. In the auction, Telkomsel also will have a 5 Mhz FDD on 1975-1980 Mhz with full national coverage. The spectrum used to be utilized by Indosat-TRI before being relinquished to the vernment as a prerequisite of their merger. Comment: Telkomsel's win on the auction is undoubtly a solid proof of its dominant position in telecommunication market and a move to strengthen its competitive edge in infrastructure standpoint. Although, the auction win will boost its 4G capability, we opine that it may not be the case for 5G services on the back of its narrow frequency band of 5Mhz, whilst 5G will need wider band frequency to ensure seamless data traffic that requires 100 Mhz for the very least. Having said that, we view that incorporating 4G and 5G infrastructures are not new here, while in fact most, 5G enabled carriers in Indonesia still adapts non-standalone approach in the midst of limited available frequency.