
New GSMA Intelligence research reveals mobile spectrum costs in Indonesia have risen significantly, posing major threat for mobile operators looking to invest in country's future digital infrastructure
9th November 2023, Jakarta: With new mobile spectrum auctions fast approaching in Indonesia, a new report by the global mobile industry association, the GSMA, has warned that the country's roadmap for digital transformation could be held back, unless it reassesses how it prices 5G mobile spectrum.
In the worst-case scenario, analysis from GSMA Intelligence forecasts that around one-third of the socio-economic benefits of 5G, some $14 billion (IDR 216 trillion) in Indonesia's gross domestic product (GDP) could be lost in 2024-2030, if prices of new spectrum bands reflect previous auction prices.
The new report launched today, entitled: Sustainable spectrum pricing to boost
Indonesia's digital economy , shows that since 2010 estimated total annual spectrum costs for mobile operators have increased more than five-fold in the country, as a result of auction-related payments and spectrum fees associated with licence renewals. In contrast, industry revenue growth has not kept pace with average revenue per unique mobile subscriber, which has declined by 48% over the same period (in USD terms). Also, spectrum fees which are adjusted annually by inflation have continued to increase.
Spectrum-related fees in Indonesia are already high - annualised spectrum costs to recurring cellular revenue is currently at 12.2%, compared to the APAC and global median values of 8.7% and 7.0%, respectively. With spectrum supply set to expand significantly in Indonesia, GSMA analysis shows that, to avoid total costs spiralling, a reduction in unit spectrum prices is vital. Otherwise, operators will struggle to make the significant investments required for 5G development. This will result in slower network rollout, poorer consumer mobile experiences, and missed economic growth opportunities that will come from new 5G mobile-enabled applications.
To prevent this happening, the GSMA report has made three important recommendations to the Indonesian government, ahead of the forthcoming 5G mobile spectrum auction:
Lower Reserve Prices: The GSMA recommends setting more conservative reserve prices for upcoming auctions of new spectrum bands. The cost of spectrum in Indonesia has risen significantly in the last decade and this poses a major threat to future development of mobile services. By setting reserve prices below estimates of market value, the government can allow room for price discovery and reduce the risk of unsold spectrum. Where there are coverage or other obligations, the associated costs must be factored into the reserve price and annual fees.
Review Annual Spectrum Fees: A further critical step is the evaluation of the formula governing annual spectrum fees. The government should consider how the parameters in the current formula could be adjusted to provide the right long-run incentives and avoid disproportionate increases in costs that are not aligned with market conditions.
Future-Proof Clear Spectrum Roadmap: Indonesia should lay a robust foundation for its mobile ecosystem by crafting a clear and comprehensive spectrum roadmap. This should not only consider current bands but also longer-term needs, particularly for mid-band spectrum. This foresight will offer mobile operators the certainty needed to prepare investment plans and develop strategies for network deployment.
Julian Gorman, Head of Asia Pacific, GSMA said: Indonesia is among the largest and fastest growing digital economies in the Asia Pacific region, which is testament to the government rightly prioritising ICT infrastructure including the completion of 4G rollout and the development of 5G networks. This said, the rollout of 5G in Indonesia will take time, this is reflective of the nation's nuanced approach given the practicalities of its geography and market readiness. According to our forecasts, 5G will reach 80% of the population by 2030.
With new 5G mobile spectrum auctions approaching, we urge the government to continue to incentivise industry investment in a future-proof digital infrastructure which drives forward economic growth and huge societal benefits for citizens. For 5G to succeed in Indonesia, the government should focus on the right enabling policies, including spectrum supply and pricing. This requires a well-crafted regulatory framework for a successful auction that delivers a fair return for the government and encourages digital growth.
While 4G coverage in Indonesia stands at an impressive 97%, the nation's 5G network roll out is at the start of the journey, currently reaching only 15% of the population. This disparity is exacerbated by a current shortage of mobile spectrum, particularly in mid-bands (1-7 GHz) for delivering high-speed mobile broadband services in densely populated urban areas, and low bands (low 1 GHz) for improved, more affordable connectivity in rural areas.
This is why, to support Indonesia's digital ambitions, the Ministry of Communication and Information Technology (Kominfo) is planning to award several frequency bands over the next two years including 700 MHz, 2.6 GHz and 3.5 GHz, as well as mmWave frequencies in the 26 GHz band. This additional spectrum will more than double the current total supply of mobile spectrum.
Based on Indonesia's current spectrum roadmap, the GSMA assessed the impacts of different spectrum cost scenarios on 5G network rollout, adoption, and associated economic benefits spanning from 2024 to 2030. The findings underscore the pivotal role that sustainable spectrum costs play in ensuring investment in future mobile networks and the continued development Indonesia's digital economy. The in-depth GSMA Intelligenc
Most recent headlines
06/10/2025
France T l visions, France's leading broadcaster, has received the 2025 EBU ...
04/09/2025
Monumental Sports & Entertainment (MSE), in collaboration with Dalet, has been a...
15/06/2025
July 2025 in Dublin, Berlin, Amsterdam & London
Photo: Thea Martre
Music Production for Women (MPW) have announced that they will be running a series of fo...
15/06/2025
Composer/producer launches free virtual instruments
Sulcata Sound is the latest venture of Jason Graves, a two-time British Academy Award-winnning composer,...
14/06/2025
NEW YORK Pluto TV and the All Womens Sports Network have launched a free ad-supported streaming TV (FAST) AWSN channel in the U.S., Canada, the U.K. and the Nor...
14/06/2025
NEW YORK and CINCINNATI E.W. Scripps has announced a new, multiyear agreement with the WNBA that will continue Ions regular-season coverage of the league on Fri...
14/06/2025
WASHINGTON The National Association of Broadcasters highlighted the hidden importance of spectrum in the production of major sporting events and described wha...
14/06/2025
WASHINGTON Sunsetting ATSC 1.0, expanding business opportunities for NextGen Broadcast and increasing international adoption of the ATSC 3.0 standard were top o...
14/06/2025
SAN FRANCISCO Samba TV and Acxiom have announced that they will dramatically expand their longstanding relationship....
14/06/2025
July 2025 in Dublin, Berlin, Amsterdam & London
Photo: Thea Martre
Music Production for Women (MPW) have announced that they will be running a series of fo...
14/06/2025
San Francisco State University's School of Cinema Uses Blackmagic Design
Brie Clayton June 13, 2025
0 Comments
More than 40 Blackmagic Design came...
14/06/2025
Boris FX Mocha Pro Adds New AI Tools To Tackle VFX Tasks Fast
Jessie Electa Petrov June 13, 2025
0 Comments
The 2025.5 release helps artists work more...
14/06/2025
AJA Debuts DRM2-Plus Mini-Converter Frame at InfoComm 2025
Brie Clayton June 13, 2025
0 Comments
Next-gen frame addresses diverse rackmount needs wit...
13/06/2025
(L-R) Lindsay Utz, Michelle Walshe, and The Right Honourable Dame Jacinda Ardern attend the 2025 Sundance Film Festival premiere of Prime Minister at Eccles T...
13/06/2025
Photo credit: Atsushi Nishijima
If you're a true lover of rom-coms, chances...
13/06/2025
Pure Drama and Fierce Rivalries set to dominate the world's most iconic spor...
13/06/2025
Johannesburg, 12 June 2025 - The National Film and Video Foundation (NFVF), an a...
13/06/2025
ABILENE. Texas A severe storm knocked down the tower and severely damaged the news studio and main facility of Sinclair-owned KTXS here on Sunday, June 8....
13/06/2025
Berklee's Music Business/Management Department Recognized by the Music Biz A...
13/06/2025
WASHINGTON The ATSC, the Broadcast Standards Association, honored veteran technologist Aldo Cugnini and Clarence Hau, Senior Vice President of Standards, Policy...
13/06/2025
(Editor's note: The 2025 UFL Championship Game between the D.C. Defenders and Michigan Panthers kicks off Saturday, June 14, at 8 p.m. Eastern. The game wil...
13/06/2025
New iPad/iPhone synth App announced
Following on from last year's release of Gradient Synth - which reached #6 on the App Store's Paid Music charts ...
13/06/2025
LONDON Warner Bros. Discovery has announced that HBO Max will launch direct-to-consumer in multiple new countries this July as the streamer becomes available in...
13/06/2025
AI voice transcription and captioning platform Verbit has added a new feature to its Captivate ASR solution the ability to identify specific features in automat...
13/06/2025
WASHINGTON Federal Communications Commission member Anna Gomez has wrapped up two weeks in California visiting broadcasters, television studio executives, enter...
13/06/2025
WASHINGTON The U.S. House of Representatives voted mostly along party lines to approve a rescission package that would cancel $9.4 billion in previously approve...
13/06/2025
At InfoComm 2025, AJA Video Systems announced DRM2-Plus, an intuitive, high-capacity 3RU frame that can neatly house up to 24 AJA Mini-Converters. Tailored to s...
13/06/2025
Cinema advertising leader to leverage AOS and suite of AI-enabled solutions to optimize forecasting, yield management, and streamlined ad sales and operations a...
13/06/2025
Manfrotto has launched the ONE Hybrid Tripod, a new support system designed specifically for professional content creators working with mirrorless cameras acros...
13/06/2025
Leading video software provider, Synamedia, today announced that its Media Edge Gateway (MEG), an ATSC 3.0 software-based IRD, now supports Device Security requ...
13/06/2025
LiveU, the global leader in live IP-video contribution, production and distribution solutions, is deepening its commitment to the German-speaking market with th...
13/06/2025
Chaos, the leader in architectural visualisation software, today announces Chaos Corona 13, giving archviz designers new ways to add eye-catching style and flai...
13/06/2025
PALI's Nena Music Video Shot with Blackmagic Design
Brie Clayton June 12, 2025
0 Comments
Blackmagic Cinema Camera 6K and DaVinci Resolve Studio b...
13/06/2025
OddBeast Powers Up iRobot's Newest Roombas with Suite of CGI Launch Assets
Brie Clayton June 12, 2025
0 Comments
The motion design and production ...
13/06/2025
On Chick Coreas Birthday, a Newly Uncovered Archival Release The Visitors, composed by Corea and performed by vibraphonist Gary Burton and pianist Kirill Gers...
13/06/2025
In fulfilment of a recommendation by the Government's Expert Advisory Commit...
13/06/2025
SVG Sit-Down: Backblaze's Gleb Budman Talks Products, Partnerships, and the ...
13/06/2025
SVG Sit-Down: DAZN's Walker Jacobs Calls Streaming the FIFA Club World Cup ...
13/06/2025
New Sponsor Spotlight: Vecima Networks' Paul Strickland on How Improving QoE...
13/06/2025
Pitch Perspective: Where's Next for Specialty Cameras in Soccer? Leaders from Sky Austria and ACS discuss the possibilities of camera placement pitchside B...
13/06/2025
Premiership Rugby Final 2025: Vintage clash between Bath and Leicester gets full...
13/06/2025
Premiership Rugby Final 2025: TNT Sports gears up for Bath vs Leicester battle w...
13/06/2025
NCAA Men's College World Series: ESPN Adds Two-Point SupraCam, Invests in Ne...
13/06/2025
New FSWX signal and spectrum analyzer with novel architecture overcomes limits o...
13/06/2025
Apple today announced the addition of iPad to Self Service Repair, providing iPad owners with access to repair manuals, genuine Apple parts, Apple Diagnostics t...
13/06/2025
CUPERTINO, CALIFORNIA Apple today previewed iOS 26, a major update that brings a beautiful new design, intelligent experiences, and improvements to the apps use...
13/06/2025
At Apple's Worldwide Developers Conference (WWDC), Apple unveiled Apple Games, an all-new destination designed to help players jump back into the games they...
13/06/2025
Industrial AI isn't slowing down. Germany is ready.
Following London Tech Week and GTC Paris at VivaTech, NVIDIA founder and CEO Jensen Huang's Europea...
12/06/2025
In 2018, Spotify launched Heart & Soul, a mental health initiative developed to ...
12/06/2025
50 Years Strong: SBS and NITV Supercharge NAIDOC Week 2025 in a joint 50th celeb...