JAKARTA (TheInsiderStories) – Cellular operator, PT Indosat Ooredoo Tbk (IDX: ISAT) decided to leave the satellite businesses and focus on digital services, said the official today. As an alternative, the company is exploring cooperation with global tech firm Google Inc., in providing internet access to remote areas.
Chief of the provider, Natasha Nababan, the plans are still in the early stages of discussions. As known, the ministry of information and communication interested in using the Google internet balloon project or Goole Loon to distribute the fourth generation (4G) internet access to remote areas.
Google Loon has a wider range and can fly above an altitude of 20 kilometers from the earth’ surface. Indosat has released Nusantara Satellite 2 orbit slot at 113 east longitude. However, the satellite failed to launch due to technical problems with the launcher rocket.
Initially, the unit of Qatar’ Ooredoo QPSC, run the satellite business through PT Palapa Satelit Nusa Sejahtera. On Oct. 21, 2020, the company sold 43.48 percent shares of the subsidiary to PT Pintar Nusantara Sejahtera and PT Pasifik Satelit Nusantara, the other shareholders of the operator.
Talking on merger plans, director and CFO of Indosat, Eyas Naif Assaf, said that there has been no significant progress on the deal, because it still very early. As reported, at the end of last December, Ooredoo has signed an exclusive and non-binding memorandum of understanding with Hong Kong’ CK Hutchison Holdings Ltd’, regarding a potential merger between the unit and PT Hutchison 3 Indonesia. The agreement period will end on April 30, 2021.
In the first nine months, the issuer reported total revenues rose 9.2 percent to Rp20.6 trillion (US$1.46 billion) compared to the previous year at Rp17 trillion. EBITDA also jumped 41.1 percent to Rp8.5 trillion from the same period in 2019. Cellular subscribers reached 60.4 million, up 2.8 percent in annual basis, with an average monthly revenue per subscriber of Rp31,700 and data traffic grew by 54.7 percent.
President Director & CEO of Indosat, Ahmad Abdulaziz Al-Neama, commented, “Despite the fierce competition and challenges of the COVID19 pandemic, we continue to maintain the growth momentum and continue to be on the right track to realize our turnaround strategy.”
Written by Editorial Staff, Email: email@example.com