Telesats is looking to invest up to $1.5 billion to build the first 4G network in Indonesia, with the Indonesian government investing $1bn to upgrade the country’s infrastructure.
Indonesia, which has been struggling to bring on-line 4G services in the face of its weak internet infrastructure, has been a long-time supporter of the telco industry and has been pushing for a nationwide 4G rollout, as well as for the rollout of 5G technologies, which are expected to be faster than 3G.
In February, Telesatel announced that it had been awarded a $1m grant from the Indonesian Telecommunications Authority to develop a network of 4G technology in the country, which was to be delivered by 2020.
This was the first time the telcos had received a government grant, according to an article on the agency’s website.
The agency has been under pressure to deliver a 4G service since the country announced last month that it would not renew the contract for a second extension for another year.
Last year, Telesa said that it was seeking approval for a national 4G roll-out, as a condition for its continued funding from the government.
Telesat plans to invest between $300m and $400m to expand its network, which will include upgrades to existing infrastructure, and will begin deploying the service next year, according the article.
There is also speculation that Telesa might seek to use its own capital to help finance the project.
“We’re not planning on using our own money to finance it.
That’s why we have to raise funds from foreign partners,” Telesato chief executive Joko Widodo said in an interview last year.
“If we need to borrow from the private sector, we will use our own capital.
However, we are not planning to use our foreign partners’ money to fund the 4G project.
We have already invested $2 billion in 4G projects.”
Telescope, a leading provider of fixed-line and mobile internet in Indonesia , has been building 4G networks in the region for several years.
More: Indias telecom industry is growing, Telcos are buying equipment from China, China is investing in Indonesia’s telecom sector, Telstra says it will invest $20bn in Indonesia by 2021 and that Telstra will invest up $1b to help build a 4.5G network.