Indonesia Telecommunications: Operators secure balanced spectrum holdings with low EBITDA impact

Research evidence excerpt

Indonesia Telecommunications: Operators secure balanced spectrum holdings with low EBITDA impact

Global Research

13 July 2026ab

First Read

EquitiesIndonesia Telecommunications

Operators secure balanced spectrum holdings Indonesia

with low EBITDA impact Telecommunications

John Te, CFA

Analyst

john.te@ubs.com

Operators secure balanced spectrum holdings with low EBITDA impact +632-8784 8814

Komdigi preliminary spectrum auction results suggest a rational outcome, with all three Navin Killa

operators securing balanced net spectrum gains and avoiding overpayment. Annual Analyst

spectrum fees imply only a modest 2-6% incremental EBITDA downside, below 2022 navin.killa@ubs.com

auction pricing, and could be offset by further modest price increases. Band strategies +852-2971 7594

differed: Telkomsel focused on 2600MHz, while XLSmart obtained more 700MHz Elisabeth Angelina Inggriani

spectrum. The key risk is the mandate for 51% 5G penetration by 2031, which could Associate Analyst

accelerate capex. Post-auction spectrum holdings are Telkomsel 265MHz, Indosat elisabeth-angelina.inggriani@ubs.com

215MHz, and XLSmart 217MHz. +62-21-2554 7006

Operator allocations and commitments:

Telkomsel was awarded 80MHz in the 2600MHz band and 20MHz in the 700MHz

band, committing US$66m (or Rp1.2tn) in annual fees or US$790K/MHz

Indosat was awarded 60MHz in the 2600MHz band and 20MHz in the 700MHz

band, committing US$49m (or Rp879bn) in annual fees or US$729K/MHz.

XLSmart was awarded 50MHz in the 2600MHz band and 30MHz in the 700MHz

band, committing US$71m (or Rp1.3tn) in annual fees or US$1.1m/MHz.

Benchmarking:

2600MHz band: Indonesia's implied annual cost of US$401k/MHz aligns closely

with Thailand's 2020 auction benchmark of US$417k/MHz.