Telco sector: Komdigi finalizes 1.4GHz tender

Telco sector: Komdigi finalizes 1.4GHz tender The Ministry of Communication and Digital (Komdigi) is finalizing regulations for the 80MHz 1.4GHz spectrum tender for Broadband Wireless Access (BWA), planned for later this year, covering spectrum use, licenses, pricing and technical standards. Hardware vendors are still assessing 5G TDD compatibility and costs. Five providers have expressed interest in the auction, which promises speeds of 10Mbps per user (300 users within a 1km radius) and up to 1.7Gbps for individual users on 80MHz bandwidth. To expedite fixed-internet deployment and prevent mobile-usage, Komdigi mandates a packet-switched Fixed Connectivity license (excluding cellular services), requires electricity-powered CPE devices without batteries, and obligates providers to share spectrum and fiber backhaul. All MNOs are eligible to participate in the 1.4GHz auction. Komdigi also intends to auction the 2.6GHz and 700MHz spectrum in 2025 for efficient 5G TDD rollout in industrial applications, with the 3.5GHz band becoming available in 2028. (Source: CNBC Telco Forum) Comment: With its robust integrated network infrastructure, strong balance sheet, and ample funding capacity, we believe TLKM is well-positioned to secure the 1.4GHz spectrum in the upcoming auction. Acquiring this spectrum presents a key opportunity to revitalize its presence in Indonesia’s fixed broadband market. Currently, IndiHome ranks fifth in service quality according to OpenSignal, trailing behind competitors such as XL Home (ranked 1st) and Indosat HI-FI (ranked 2nd). This underperformance may be attributed to its relatively high spectrum-to-subscriber ratio (0.98MHz/subs), which constrains capacity amid rising data-demand driven by accelerating digitalization. Securing 80MHz in the 1.4GHz band could significantly enhance network capacity, improve service quality, and potentially restore IndiHome’s leadership in the fixed broadband segment