PT XLSMART Telecom Sejahtera Tbk (EXCL) has officially withdrawn from the government’s 1.4 GHz spectrum auction. The auction is part of a national initiative to provide internet speeds of up to 100 Mbps at low cost.

This decision followed an internal review of the auction documents, which were found to be misaligned with the company’s business plans.

“We’re not joining the 1.4 auction; we withdrew yesterday. After reviewing the documents, they might not align with our business plan,” said Merza Fachys, Director and Chief Regulatory Officer of XL Axiata, Monday (29/9/2025).

Internet Access Targeted at 100 Mbps with 1.4 GHz Band

The 1.4 GHz frequency is projected to enable broadband internet access with speeds reaching 100 Mbps. It is expected to support affordable and wide-reaching network development across Indonesia.

The auction is intended for the deployment of Broadband Wireless Access (BWA) using Time Division Duplex (TDD) technology. This setup is designed to give operators flexibility in delivering internet access over broadband networks.

Business Strategy Misalignment Behind XL’s Withdrawal

Merza Fachys explained that the decision was primarily due to regional rollout requirements set by the government. These did not align with XL Axiata’s current network development plans.

“They determined Region 1 must cover certain areas. Our development, as it turns out, doesn’t match that,” he said.

Despite stepping back from this round, XL Axiata does not rule out participating in future frequency auctions.

“If there’s another auction, and it aligns, we’ll join,” he added.

Government Opens Auction for 1.4 GHz Broadband Spectrum

In July, the Ministry of Communication and Digital (Komdigi) officially opened registration for the 1.4 GHz spectrum auction. The selection process is governed by Ministerial Decree No. 337/2025, which outlines the auction of 80 MHz of spectrum (1432–1512 MHz) across three regions.

The process is open to all licensed telecommunications operators and includes administrative and network development evaluations. The aim is to ensure an objective and transparent selection process for providing broadband wireless services.

PHOTO: SMARTFREN/INFOBANKNEWS

This article was created with AI assistance.