The Indonesian government is asking the local subsidiary of Hutchison Telecommunications International Ltd (HTIL) to pay a 3G frequency charge plus an upfront fee totalling 800 billion rupiah ($687.2 million) until 2008.
These charges would apply to both Cyber Access, HTIL's 60 per cent-owned mobile unit that won a national licence for 15 megahertz (MHz) of 3G frequency spectrum through a tendering process in 2003, and Natrindo Telepon Selular, owned by Malaysia's Maxis Communications.
The three new 3G licencees that won at the government's latest 3G licence auction in February - Indosat, Excelcomindo and Telkomsel - have all paid under a different payment schedule.
Yesterday, a spokesman for the Directorate-General of Post and Telecommunications said that by a ministerial decree announced last month, Cyber Access would need to pay by the end of this month a 160 billion rupiah annual radio frequency charge, which would be applicable for the next 10 years.
By 2008, both Cyber Access and Natrindo would each have to pay a further 320 billion rupiah upfront charge for using the 3G spectrum.
Meanwhile, the spokesman said the government would take back five MHz of Cyber Access' 3G paired spectrum, leaving it with only five MHz for service roll-out after it handed back another five MHz under a government appeal in September last year.
