, PT Sarana Menara Nusantara Tbk (IDX: TOWR) also interested to acquire 3,000 towers owned by PT Indosat Ooredoo Tbk (IDX: ISAT) - Photo by the Company

JAKARTA (TheInsiderStories) – Local tower operator, PT Sarana Menara Nusantara Tbk (IDX: TOWR) also interested to acquire 3,000 towers owned by PT Indosat Ooredoo Tbk (IDX: ISAT). If it goes well, the total management of the company’ towers will reach more than 21,000 towers, said the management today (08/20).

Previously, state-owned telecommunication, PT Telkom Indonesia Tbk (IDX: TLKM), via its subsidiaries PT Dayamitra Telekomunikasi (Mitratel) was admitted joined the tender. Indosat targeting to raise US$300 million from the tower sale.

Adam Ghifari, Deputy Director of Sarana Menara explained that there are still many funding schemes that can be carried out by this company in the context of the inorganic growth. For organic growth, the company owned by Djarum Group, has allocated capital expenditure Rp3.5 trillion (US$246.48 million) in this year.

In the first semester (1H) of 2019, Sarana Menara managed 18,100 towers with a rental point reaching 2,900 base transceiver station (BTS).

Last year, the operator has completed the acquisition of 100 percent of PT Komet Infra Nusantara (KIN) from PT Nusantara Infrastructure Tbk(IDX: META). Aming Santoso, President Director of TOWR said,  PT Profesional Telekomunikasi Indonesia (Protelindo), other company owned by Djarum, will take over tower the assets following the shares sale.

Based on the sale and purchase agreement signed on March 23, 2018, META’ unit PT Telekom Infranusantara sold its 1.31 billion shares in KIN around Rp1.40 trillion. Through this acquisition, Sarana Menara gets additional 1,400 towers spread across North Sumatra, Riau, Batam, most of Java and Bali.

In addition, KIN also operates fiber optic cable network especially in Surabaya, Batam and Medan. This year, KIN’ sales is estimated to reach Rp325 billion with approximately 70 percent of revenues coming from PT Telkom Selular (Telkomsel), PT XL Axiata Tbk (IDX: EXCL) and Indosat.

Protelindo owns and operates over 14,500 towers in Indonesia. Its unit was established in January 2003 and has become the largest independent owner and operator of towers for wireless operators in Indonesia. Protelindo’ primary business is leasing space at its multi-tenant tower for all major wireless operators in Indonesia under long-term lease agreements.

Observes rated, telecom industry EBITDA will grow at mid-single-digit rates, underpinning the continuing rational competition in the Java region and gradual data monetization. The operator’ spending is likely to be higher in 2018 and 2019, as telecom operators invest to meet rising demand for LTE services.

Meanwhile, there will be a strong fixed segment momentum for cable and fibre broadband services, propelled by a broadband network target of achieving 71 percent of urban households at 20Mbps by 2019, from around 10 percent.

US$1: Rp14,200

by Linda Silaen, Email: linda.silaen@theinsiderstories.com