PT Dayamitra Telekomunikasi Tbk (MTEL). Foto: Perseroan
For Mitratel as the market leader in ownership of the largest telecommunications tower in Southeast Asia, this consolidation step will help open up opportunities for all operators to expand their business.
“The growing need for mobile data, the development of 5G and LoT (Internet of Things) technology and the merger of mobile operators have had an impact on the further development of the telecommunications tower industry in Indonesia. “This has quite good market potential to continue to grow,” said Mitratel President Director Theodorus Ardi Hartoko at the Telkom Group Investor Day 2022 event in Nusa Dua, Bali, recently.
Mitratel now has 34,800 towers, after acquiring 6,000 Telkomsel towers which are strategically located, spread throughout Indonesia, and the majority are outside Java. Mitratel also provides a total solution through a bundling scheme, which consists of tower leasing, connectivity, and power to tower, so that Mitratel has full power in responding to these opportunities.
“With this mapping, we are optimistic that this strategy will be welcomed positively by all operators. “Moreover, the additional 32% of Mitratel towers are the main priority for tenants from mobile operators,” said Teddy Hartoko, his nickname.
He emphasized that after the acquisition of the Telkomsel tower, his party was more aggressive in increasing the tenancy ratio and expanding services including supporting businesses to increase more value for customers’ businesses. “The business scheme and total solutions that we offer to operators do not require large investments, so it becomes easier and more efficient for customers,” he explained.
Meanwhile, President Director of PT Telkom Indonesia Tbk (TLKM) Ririek Adriansyah said that consolidation of the connectivity business would increase the valuation of Telkom’s subsidiaries. This has been done with the telecommunications tower business, namely combining Telkomsel towers with Mitratel. “With this merger, the unlocking of the telecommunications sector business under the Telkom Group can be carried out,” he said.
Ririek added that the steps to consolidate TLKM’s subsidiary businesses are the realization of 5 big strategies known as the Five Bold Moves, to become a world-class telecommunications industry with targets including encouraging business transformation, increasing market capitalization (market cap) with a valuation of IDR 500-700 trillion, business unlocking, as well as EBITDA which must continue to grow.
On this occasion, Deputy Minister of BUMN II Kartika Wirjoatmodjo said that the steps to merge the tower business into a Telkom subsidiary were deemed appropriate. He explained that Mitratel’s business strategy for acquiring Telkomsel towers was to make it efficient and increase the company’s valuation and competitiveness.
This shows that in the future, Mitratel’s telecommunications tower management can be leased to all mobile operators. Apart from that, the tower acquisition business step taken by Mitratel has become a new revenue stream for the Telkom Group and has increased the influx of capital (Mitratel) from investors. “Tower management, which was previously a cost center, can now become a profit center because it can also be filled by other operators,” he explained.
Tiko also stated that the Job Creation Law allows and encourages the use of tower infrastructure for shared services (infrastructure sharing). Apart from towers, fiber optics can also be shared by operators. According to him, the current level of competition is no longer in control of infrastructure, but the quality of service to customers.
Editor : Jauhari Mahardhika (jauhari@investor.co.id)
Source:
Investor.ID
