Investors turn back on Mobile-8 after disagreements

6 Mar 2006

A consortium led by Indonesia’s Sinar Mas Group has turned its back on a plan to acquire a stake in network operator Mobile-8 Telecom as a result of irreconcilable disagreements among its members. A spokesman for Sinar Mas said the plan had been abandoned due to ‘differences of opinion’ among consortium members. He did not elaborate. Investors from China, South Korea and the US were thought to be part of the consortium, which planned to buy a stake in the CDMA operator. As it stands, Mobile-8 is 70.5% owned by PT Bimantara Citra.

In a separate story, Indonesian incumbent fixed line operator PT Telkom has said it will put on hold plans to increase telephone tariffs, amid concerns that consumers will not be able to shoulder the financial burden after a recent spike in inflation. Telkom’s President Arwin Rasyid said his company decided to shelve the plan for an indefinite period even though production costs are already above the current tariffs. ‘It is not appropriate to do it [increase tariffs] now after the fuel price hike and . . . government plans to increase electricity tariffs’, he said.

Indonesia, Mobile-8 Telecom