Mitratel Acquires 967,1 Km Fiber Optic
JAKARTA – Focused and consistent on being the largest digital infrastructure company (Digital Infraco) in Indonesia, PT Dayamitra Telekomunikasi Tbk. (MTEL) or Mitratel has acquired 967,1 Km fiber optic under the ownership of PT Power Telecom with 1,144.7 Km billable length. This new fiber-optic network has strategic value for completing tower business portfolios with a billable ratio of 1.18x. The entire optical network, as the object of this acquisition, is located on Java Island.
To execute this acquisition, the company allocated IDR 85 billion from internal funding. As a side note, the company allocated capital expenditures of IDR 7 trillion this year and had absorbed about 58% of the expenditures until the end of the Q3-2023. That suggests that MTEL possesses sufficient liquidity to fund the expansion of tower and fiber optic until the end of this year.
President Director of Mitratel, Theodorus Ardi Hartoko, conveyed that the acquisition of fiber optic reflected the company’s commitment to expanding the market share while strengthening MTEL’s position as a strategic partner of the telecommunications operator industry in Indonesia. “Our persistence to consolidate tower business, fiber optic, and other services will establish MTEL as the largest Digital Infraco in the Asia Pacific,” stated Teddy, Theodorus’ nickname.
In the Q3-2023 performance report, MTEL recorded proprietorship of 37,091 towers, an increase of 5.8% compared to the same period last year of 35,051 towers. Meanwhile the number of collocations jumped 21% to 18,613 from the previous 15,339 collocations (yoy). Mitratel also succeeded in extending fiber optics from only 5,872 Km to 29,042 Km.
“We believe that the future business landscape of the telecommunications industry will be marked by the divestment of towers and fiber optics owned by the MNO industry. They do this because they want to focus more on product innovation that provides added value and fulfills consumer needs. This change is certainly an opportunity for Mitratel to become a strategic partner and grow with them,” said Teddy.
Teddy explained that the company will continue to expand its assets by acquiring both towers and fiber optic organically and inorganically, including acquiring divested assets from telecommunications operators. Prior to the length increase of the fiber optic at the end of September 2023, MTEL had also successfully acquired numerous towers, the majority of which were located on Sumatra Island.
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You can see Mitratel’s Portfolio on this page:
https://www.mitratel.co.id/portfolio-en/
