Basically, telecommunications has been dominated by foreigners since the colonial era where Telkom is currently the new stand . Indosat also since inception in 1967 did not escape the role of foreign investors . New in 1980, the Indonesian government to take over all shares of Indosat , so be SOEs .
However , foreigners turned back again to play in 1993 . At that time , the policy of the Indonesian government to put Telkom and Indosat as two local telecommunications monopoly practice .
Due to limited funds and the government-owned telecommunications operator , the development of telecommunications infrastructure in particular fixed telecommunication networks (fixed wireless ) local time it was done through the participation of foreign capital .
Law. 3/1989 on Telecommunications and PP. 8/1993 and No. Kepemenparpostel . 39/1993 on Cooperation Organization Basic Telecommunications Services enabling cooperation between Telkom or Indosat with other companies in the basic telecommunications services .
The third regulation specifies that the obligation of cooperation between the administering body and the other bodies in the telecommunication base to form a joint venture ( joint venture ) , the joint operation ( KSO ) or contract management.
It is true as stated in the PP. 20/1994 concerning the ownership of shares in a company incorporated in the framework of FDI : investment telecommunications business field can be done by a foreign investor joint home ownership Indonesian participants at least 5 % of the paid-up capital . However , the schedule of WTO multilateral treaty commitment , Indonesia stated that foreign ownership of shares basic telecom service providers can up to 35 % .
In the mobile telecommunications services , in accordance with Law no. 3/1989 , today is a mobile telecommunications carrier other companies either foreign or local cooperation in a joint venture with Telkom or Indosat or both .
From this was born the new mobile operators such as Satelindo ( Indosat venture between Telkom , with GSM operators in Germany DeTeMobil ) and Telkomsel ( joint venture between Telkom , Indosat , PTT Telecom Netherlands and Setdco Megacell Asia )
XL do different things , because the operator was born without two companies both incumbent Telkom and Indosat in it , as mandated by Law. 3/1989 .
Began the decade of the 2000s , many new operators popping up either mobile or fixed wireless phone such as Mobile - 8 Telecom , PT Bakrie Telecom , PT Natrindo Phones , PT Hutchison CP Telecommunications , PT Smart Telecommunication , and PT Sampoerna Telekomunikasi Indonesia .
Most of the new operators rely more on marketing to boost rates compared to expanding and improving network quality . Mostly do not even have a base transceiver station but riding on telecom towers owned by other operators that have been long standing .
In 2004 , 3G operators have begun to emerge , although granting the license a bit controversial . The government has given permission for free in the hope to earn in stages as the development of 3G operators . The first 3G services license granted to PT Cyber Access Communications ( CAC ) in 2003 after beating eleven other participants in a beauty contest .
CAC in February 60 % stake was taken over by Hutchinson allocated 15 Mhz broadband . Frequency allocation received CAC is the largest compared to other operators .
3G licenses through a beauty contest for this may be the first and last in the history of the telecommunications industry in the country . This is because the government will soon make a surprise in the first quarter of 2004 to grant a license to Lippo Telecom with a wide band 10 Mhz .
While in the period 1999-2003 permission to hold services in the telecommunications frequency spectrum third generation services ( 1,900 Mhz - 2100 Mhz ) also slid . Among them license to PT Wireless Indonesia , Indosat StarOne , Telkom Flexi , and Primasel each with a width of 5 MHz bands .
Permission for CDMA - EVDO cellular and CDMA - 1X is the latter causing overlap with the frequency bands to be used for third generation Wideband CDMA services . This is because both 3G CDMA and Wideband CDMA technology uses frequencies berkomplementer each other .
Wideband CDMA third -generation services in the frequency spectrum in Indonesia working at 1,920 MHz bands up to 1,980 MHz . While CDMA1X can operate in the band 1930 Mhz to 1,990 Mhz . ITU standard requires a 3G only works on a limited spectrum of the 60 Mhz .