JAKARTA (TheInsiderStories) – An Indonesian telecommunication operator, PT XL Axiata Tbk (IDX: EXCL) plans to release 4,500 towers due to changes in network architecture. The company is currently coordinating with several operators for the acquisition,” the management told the media in Jakarta Today (09/5).
XL Axiata Finance’s Director Mohamed Adlan bin Ahmad Tajudin said, using the previous network, the operation of 4,500 towers was too risky if handed over to other parties because they were strategic towers that determined the sustainability of the other towers.
However, due to network changes, the company is ready to sell all of the towers. Currently, it is preparing documents before finally offering to the market. XL Axiata’s President Director and CEO Dian Siswarini said that their party was still waiting for the right time to offer it to the market.
While previously, XL sold 3,500 towers to PT Solusi Tunas Pratama (STP) in 2014 of Rp5.6 trillion (US$394.36 million). Then, in 2016 the company released 2,500 towers and raised funds of Rp3.6 trillion from a subsidiary of PT Sarana Menara Nusantara Tbk (IDX: TOWR), PT Profesional Telekomunikasi Indonesia.
The company also plans to expand its data network to outside Java so could strengthen business foundations and deal with increasingly stringent fellow operators. Siswarini explained that the expansion of data network infrastructure to outside Java would be able to improve service quality while supporting companies in expanding market share.
She added that at the beginning of the second semester of 2019, the company absorbed 60 percent of this year’s Capex, most of which was to continue the expansion of data networks in many areas outside Java. The expanding outreach outside of Java has produced commensurate results, traffic from outside Java has increased rapidly and is driving revenue growth.
XL Axiata’s Technology Director Yessie Yosetya, said that during the first semester of 2019, the company has completed 90 percent of its network construction target of around 19,000 new BTS, most of which are outside Java.
The company has provided 4G services in about 292 cities outside Java with more than 14,000 4G BTS. This year, the company targets to provide 4G services in 440 cities with 135,000 units BTS.
In the first semester of 2019, XL Axiata posted a profit of Rp282.3 billion, increased from last year which recorded loss of Rp81.7 billion. The increase of profit was supported by an increase in total company revenue by 10.9 percent to Rp12.2 trillion from Rp 11 trillion in last year.
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