Three Indonesian telecommunications giants, PT Telekomunikasi Selular (Telkomsel), PT Indosat Tbk., and PT XLSMART Telecom Sejahtera Tbk., are scheduled to participate in a new frequency spectrum auction in the 700 MHz and 2.6 GHz bands on Tuesday, July 7, 2026. This auction is crucial for each operator to expand the 'toll roads' for their mobile data traffic.
For mobile operators, frequency ownership is a double-edged sword. While wide spectrum guarantees optimal service quality for customers, inefficient utilization can become an operational burden that erodes company profitability. Therefore, securing frequency bands is a vital strategy for maintaining competitiveness amid continuously increasing data demands.
Currently, operators rely on frequency bands ranging from 850 MHz to 2300 MHz using FDD (Frequency Division Duplexing) transmission methods for connection stability, as well as TDD (Time Division Duplexing) for asymmetric data traffic efficiency. This choice of technology allows operators to flexibly manage download and upload capacities in accordance with user behavior patterns.
Recent data shows Telkomsel still leads with spectrum holdings reaching 165 MHz, despite facing a 3.2 percent year-on-year decline in subscribers. On the other hand, XLSMART recorded significant subscriber growth of 18 percent, making it the player with the second-largest spectrum at 152 MHz. Meanwhile, Indosat currently operates 135 MHz of spectrum to serve approximately 94 million subscribers across Indonesia.
The upcoming auction is expected to provide additional capacity for operators to expand service coverage, including accelerating 5G networks. With competition intensifying, holding the right frequencies will determine who can dominate the telecommunications market in the future.
