EXCL - Plans to join 700Mhz and 26GhZ auctions

EXCL - Plans to join 700Mhz and 26GhZ auctions XL Axiata (EXCL) is planning to join an upcoming auctions of a 700Mhz and 26 Ghz spectrum in order to optimize its data service quality, following the completion of Analog Switch Off (ASO). In doing such auction, EXCL is hopeful the government to implement evaluation scheme rather than selection as stimulus for the industry. (Source : Bisnis Indonesia) Comment : Although 5G technology has yet to be widely rolled out to the general public, we deem the ownership of bandwidth on a 700Mhz, dubbed to be "the golden band" is crucial to fully optimize its data speed on 5G as the spectrum is globally standardized. Furthermore, the 700Mhz spectrum that is categorized as low band frequency, allows it to be more efficient in 5G network deployment thanks to its unique characteristic to reach wider coverage with fewer tower cell. With such unique characteristics, in other countries, the spectrum is often auctioned with higher price. Meanwhile, 26GhZ is also seen to be promising given its high throughput, allowing data to travel in high speed with very low latency. Nevertheless, there could be hope that government will be more considerate for setting the auction price to incentivize 5G use.