The GSMA claims that Indonesia stands to lose US$14 billion in GDP gains over the next six years if it doesn’t rethink it 5G spectrum pricing in the next auction.

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. That would more than double the current total supply of mobile spectrum.

However, a new report from GSMA Intelligence points out that estimated annual spectrum costs for mobile operators in Indonesia have increased more than five-fold since 2010, mainly due to auction-related payments and spectrum fees associated with licence renewals.

Making matters worse, average revenue per unique mobile subscriber dropped 48% over the same period (in USD terms). The report estimates that 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.

At the very least, the report says, this could hamper the ability of Indonesian operators to meaningfully invest in 5G infrastructure, which will slow down rollouts and result in poor customer experiences.

The GSMA also frames the issue in terms of the expected socio-economic benefits that 5G will deliver to Indonesia, saying that the country could lose US$14 billion (IDR 216 trillion) in GDP between 2024 and 2030 if it prices 5G spectrum similar to the previous spectrum auction.

The report urges Kominfo to lower reserve prices below estimates of market value, and adjust the way it calculates annual spectrum fees to provide long-run incentives and avoid disproportionate increases in costs that aren’t aligned with market conditions.

The GSMA also recommends that Kominfo come up with a clear and comprehensive spectrum roadmap that accommodates current and future needs, particularly for mid-band spectrum. 

“According to our forecasts, 5G will reach 80% of the population by 2030,” said Julian Gorman, Head of Asia Pacific, GSMA. “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.”

News 

The deal will be submitted to the French telecoms regulator, just after it had fined the company €26 million for failing to meet its deployment targets 

French mobile operator Orange has announced a deal with the French government, that will see Orange increasing its fibre deployment to 1.12 million homes by 2025. 

The deployment deal will include areas which are the least densely populated in the country, named AMII zones. The company acknowledged the stark disparity between rural and urban areas, promising to provide over 140,000 homes with fibre in the areas with the least connectivity. 

In urban areas, deployments will continue, with the aim of connecting 300,000 premises by 2025. 

“After making a major contribution to the success of the France Très Haut Débit plan (France’s superfast broadband plan) in 2022, Orange is once again working with the government to ensure the widespread deployment of fibre by 2025,” said Orange CEO Christel Heydemann. 

“Having already covered 21 million of the 36 million eligible premises in France, we’re determined to make this major project a national success, benefiting as many people as possible.” 

The announcement comes after Orange ran into legal issues concerning the rate of their fibre deployment. The French Authority for Regulation of Electronic Communications, Mail and Press Distribution (ARCEP), fined Orange €26 million for missing the first deadline of deploying fibre for broadband in 3,000 municipalities across France. The first deadline was missed in 2020, and the company was put on notice in March last year. 

ARCEP noted that Orange’s non-compliance was “particularly serious” because it harmed the interests of end users in their access to networks. 

Arguing against the claim and fine, Orange said “the fine imposed by ARCEP could further reduce the amount of investments made in the deployment of fibre, to the detriment of households waiting for connection.” 

The company will refer the issue to France’s highest administrative jurisdiction, the Council of State. 

Keep up to date with international telecoms news by subscribing to the Total Telecom daily newsletter – subscribe here.  

Also in the news:
KPN outlines new €4.5bn network investment plan
Vodafone Germany accelerates railway 5G deployment 
nexfibre releases rollout plans  

Operator Zain KSA has announced a strong Q3 2023 financial performance driven, in part by tower-related business.

The Saudi operator reports its highest quarterly revenues, exceeding SAR 2.5 billion (about US$666.7 million) – a 10% increase compared to the SAR 2.2 billion (US$586.7 million) generated in the third quarter of the previous year, as well as recording SAR 285 million (US$76 million) in net profit, a growth of 234% compared to the corresponding period in 2022.

Importantly, this strong financial performance is in part attributed to Zain’s recent tower infrastructure sale and leaseback deal. This generated gains totalling SAR 139 million (US$37.1 million) during this quarter. However, this is just part of a total financial impact which the company expects to reach SAR 1.1 billion (US$293.3 million) over the 18-month period of the tower ownership transfer.

Saudi Arabia’s second-largest telecoms company completed a deal in January to sell a stake in its tower infrastructure for more than SAR 3 billion (US$800 million). As part of the deal, Zain KSA sold at least 3,000 towers, out of a total of 8,069, to Golden Lattice Investment Company (GLIC), which is owned by the kingdom’s sovereign wealth fund, the Public Investment Fund, Zain KSA, Prince Saud bin Fahad and Sultan Holding Company.

Towers are far from the sole reason for the strong balance sheet in Q3. Zain also cites sustained business growth across all sectors with strong demand for cutting-edge services and solutions such as cloud computing, the Internet of Things, and artificial intelligence.

Beyond the growth in 5G revenue, Zain KSA says it has also witnessed a steady uptick in its consumer services and a surge in demand for Yaqoot digital services and micro-finance solutions offered through Tamam, its fintech arm.

Published by our sister title, Broadband Communities. Reach editor Brad Randall at brad.randall@totaltele.com.

Also in the news:
KPN outlines new €4.5bn network investment plan
Vodafone Germany accelerates railway 5G deployment
nexfibre releases rollout plans 

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Over in western Europe, euNetworks has made some new investments into its low latency connectivity between key financial exchanges. They are now claiming to deliver the lowest latency to the Euronext exchange from both London and Frankfurt. … [visit site to read more]

Digital Edge, one of Asia’s fastest-growing digital infrastructure providers, has deployed across its footprint a full stack of wired and wireless upgrades from Juniper Networks, a major name in secure, AI-driven networks.

The upgrades, says Juniper, support the rapid expansion plans of Digital Edge, meant to address the high-growth digital needs of developing and emerging markets across the region.

With the region’s swiftly accelerating digital economy and a corresponding rise in demand for localised data centre facilities, Digital Edge requires networking upgrades for its fast-growing base of enterprise and hyperscale customers.

With ongoing plans to expand its footprint and increase its capacity to 500MW over the next five years, the company has selected Juniper to provide the scalable power, volume and space efficiency required for its campus and data centre network upgrades – leveraging a full-stack suite of solutions to simplify infrastructure engineering and automate networking operations, all while improving operational efficiency as it continues to scale.

Within each data centre, the high-throughput and low-latency QFX5120 data centre switch enables cross-connects, allowing customers to connect to their choice of digital resources or business partners and support a thriving digital ecosystem. In addition, for cost-optimised interconnections, the MX204 universal router provides Digital Edge with a high-density, reliable, and operational simplified platform between the company’s data centres.

To power the campus, across several sites AP43 wireless access points alongside EX2300 and EX3400 Ethernet switches deliver hyper-reliable campus connectivity and intuitive AIOps capabilities. Capitalising on the Juniper Mist cloud with its Wi-Fi and wired assurance services as well as the Marvis virtual network assistant, they realise automation with AIOps, rich insight into experiences, AI-driven RF optimisation, and proactive fault resolutions. Powered by Mist AI, business-critical systems run with minimal intervention.

Juniper says it has enabled Digital Edge to differentiate itself by offering an expanded interconnected ecosystem of seamless high-performance services, regardless of location selected. This, in turn, has provided its customers with the ability to scale as required, at their own pace, and without limitation.

Digital Edge provides carrier-neutral colocation and connectivity services via 17 data centres across six markets in the region. It has a presence in China, India, Indonesia, Japan, Korea and the Philippines.

News 

The operator is on track to become the first in the country to launch 5G standalone (SA) on a large scale on Germany’s intercity train routes 

Vodafone Germany has announced that it has activated its 5G SA network on over half of the country’s railway lines, or 15,000km of railway lines. 

In April last year, the operator partnered with Deutsche Bahn, Germany’s leading railway operator, to close any remaining gaps in Vodafone’s network on railway routes throughout the country. 

The goal of the collaboration is that that Vodafone will provide Deutsche Bahn’s busiest routes with large-scale SA 5G along routes connecting the country’s major cities by 2025. 

 So far, the partnership has delivered notable results. Over 1,800 of the country’s 3,250 train stations now have 5G coverage, including over 600 with indoor 5G coverage. 

Since the beginning of the year, the firm have also built 225 new mobile sites on railway lines to reinforce the long-distance train routes by closing the “dead spots” on the lines. 

“Especially on trains, it is notoriously difficult to provide good and reliable network coverage for passengers,” said Tanja Richter, Vodafone Germany’s Network Director in a statement. 

“Thanks to the new buildings and the numerous modernisation measures on the existing antennas, we were able to noticeably improve the mobile phone coverage for rail passengers and commuters.” 

Richter notes that there is still much work to be done before all the railway routes can be provided with a fast and stable connection. 

Join the German operators in conversation at this year’s Connected Germany – book your last-minute tickets now! 

Also in the news: 
Rogers prepares to lock out unionised workers ahead of strike
Verizon and AT&T subscribers draw up class action lawsuit against T-Mobile
Telecom Italia approves KKR’s €18.8 billion fixed infra acquisition