Riding the Wave: Spectrum Allocation in Southeast Asia

As Southeast Asia races to expand 5th generation (5G) cellular network technology, satellite communications, and digital connectivity, spectrum management has emerged as a critical policy issue. The radio frequency spectrum underpins wireless communication, making it fundamental not only to technological competitiveness but also to broader economic and geopolitical outcomes. In the region, decisions about how to allocate and auction spectrum are shaping investment climates, the pace of telecommunications innovation, and the contours of great power competition in regional technology development.

Why Spectrum Management Matters

The radio-frequency wave spectrum is a highly sought after resource. Every wireless device, from smartphones and satellites to defense radars, requires a share of this spectrum to function. The surge in wireless-enabled technologies from 5G networks and smart city infrastructure to Internet of Things applications has placed increasing pressure on spectrum availability.

Spectrum management aims to reduce this pressure through the process of allocating, licensing, and monitoring frequency bands. This involves balancing the competing needs of broadcasters, tech companies, defense systems, and emerging companies.

A common option for assigning spectrum in the region is through auctions. By auctioning frequency bands, governments can maximize revenue, promote efficient spectrum use, and foster competition among telecom operators. Auctions have therefore become a critical link between public policy, state finances, and private sector investments.

In Southeast Asia, effective spectrum management has become increasingly important as both the Association of Southeast Asian Nations (ASEAN) and national governments pursue smart city plans and expand 5G deployment. Moreover, as ASEAN digital connectivity accelerates and consumer demand for faster and more reliable internet surges, spectrum allocation will play a pivotal role in economic integration, investment attraction, and digital transformation.

Beyond faster internet, expanded 5G deployment in Southeast Asia will be crucial in facilitating the growth of the region’s digital economy, which could reach up to $1 trillion in gross merchandise value by 2030. Mobile providers could generate up to $40 billion in new revenue from 5G-enabled services by 2030.

Regional Approaches 

Southeast Asian states share broad goals through digital connectivity yet face diverse challenges in managing spectrum resources. The ASEAN Telecommunications Regulators Council provides a platform for coordination and guidance. ASEAN has also articulated members-states’ objectives under the Advanced Spectrum Monitoring Guidance on Mobile Broadband Technology for regional cooperation and shared spectrum management. The document emphasizes the importance of effective monitoring and evaluation, proactive risk management to address issues like technological obsolescence or cross-border interference, adequate resources for oversight, and meaningful engagement with governments, operators, and international stakeholders. These shared goals, however, remain largely aspirational, as national governments continue to diverge in their design and implementation of spectrum auctions.

National Approaches: Contrasting Models

Indonesia has relied on comparative evaluations as well as traditional auctions to assign spectrum licenses. However, a major challenge has been reallocating the 3.5-gigahertz band, a critical 5G band, which remains tied up by satellite operators with long-term leases. This has slowed the country’s 5G rollout relative to its neighbors, even as auctions for lower bands have moved forward.

Thailand has conducted multiple high-profile spectrum auctions for 5G services. Earlier this year, the auction of the 5G enabling 1500-megahertz, 2100-megahertz, and 2300-megahertz bands raised over $1 billion for the government and established clear telecom leaders. However, these auctions have also raised concerns about high spectrum costs, scrutiny over perceived regulatory favoritism, and constraints on operators’ ability to invest in network expansion.

Malaysia initially experimented with a wholesale 5G network model under Digital Nasional Berhad, rather than assigning spectrum directly to mobile operators. This top-down approach was intended to avoid duplication of infrastructure and lower costs, but it faced industry resistance and delayed investment into the country’s 5G infrastructure. In 2024, Malaysia began transitioning toward a dual 5G wholesale network model for deployment in response to these challenges. However, concerns have been raised on selection criteria for grantees and the lack of clarity regarding spectrum assignments in a dual model.

Singapore employs a highly structured auction framework overseen by the Infocomm Media Development Authority. Auctions are designed to balance state revenue with strict rollout obligations, requiring operators to meet performance benchmarks and policy objectives within defined timelines. For example, winning operators of the 3.5-gigiahertz band are obligated to achieve nationwide outdoor coverage by the end of 2025 and provide wholesale access to other mobile network operators to encourage services-based competition, 

Taken together, these differing national approaches reveal the trade-offs Southeast Asian states face between maximizing government revenue, accelerating 5G deployment, ensuring regulatory fairness, and safeguarding national security. How each country balances these priorities illustrates not only their economic preparedness but also the political and security considerations that shape spectrum management in the region.

Technological, Economic, and Geopolitical Stakes 

Spectrum allocation decisions directly affect the performance of key technologies. Allocating the right frequency bands can minimize interference, improve latency and improve coverage. These characteristics are essential for supporting next-generation services such as autonomous vehicles, advanced manufacturing, and real-time healthcare applications.

Moreover, spectrum allocation affects 5G because it directly determines a network’s capabilities and performances with specific frequency bands offering different speed, capacity, and coverage. Efficient and effective allocation is key in enabling the progress of 5G deployment across the region. 

From an economic perspective, spectrum is also foundational for long-term private investment. Telecom operators and technology firms require confidence that their assigned spectrums will remain stable and usable over time. Well-structured allocation policies can therefore encourage infrastructure development, expand digital access, and reduce costs for consumers. But fragmented or inefficient allocation can deter investment and slow the rollout of 5G.

Spectrum management may also carry geoeconomic stakes. National decisions about spectrum influence defense readiness, digital sovereignty, and relationships with global vendors. For instance, choices between telecom infrastructure vendors like Huawei from China or Samsung from South Korea may reflect broader geopolitical sentiments. Security concerns also play a role: Western governments have warned against the use of Chinese equipment in sensitive spectrum bands, citing potential risks to critical infrastructure and defense communications.

For Southeast Asians, the robust or weak spectrum management could mean the difference between their communities gaining access to affordable, high-speed internet or remaining excluded from digital growth. Internet connectivity is no longer a luxury but a prerequisite for full participation in economic and social life: it enables access to online education, digital financial services, telehealth, and remote work opportunities. Yet large portions of the region remain underserved. According to a 2022 estimate, 150 million adults in Southeast Asia still lack reliable broadband connections, with rural communities often facing prohibitively high costs or poor coverage. Weak spectrum management risks entrenching the digital divide while the opposite could bring economic opportunity and social inclusion to populations that have long been left out of the digital economy. This divide is particularly stark in the region as countries like Myanmar and Laos struggle with poor and unreliable access while more advanced markets such as Singapore and Thailand already enjoy high-speed, widespread coverage.

Spectrum management and auctions in Southeast Asia sit at the intersection of technology, economics, and geopolitics. As demand for bandwidth intensifies, national policies on spectrum allocation may have long-term implications for development, competitiveness, and security. Spectrum policy decisions will not only shape the region’s digital future but also its position in a world of rapid technological change.

Hpone Thit Htoo is a former research intern with the Southeast Asia Program at the Center for Strategic and International Studies in Washington, D.C.