Telkomsel announces 25% CAPEX increase

13 May 2009

Indonesian mobile operator PT Telekomunikasi Selular (Telkomsel) is increasing its 2009 CAPEX figure by about 25% to more than USD1.4 billion, as it looks to expand the coverage of its GSM and W-CDMA/HSPA networks. Telkomsel increased its mobile user base by around 6.8 million to 71.3 million in the first three months of the year. Online journal Light Reading quotes Telkomsel’s president, Sarwoto Atmosutarno, as saying that having spent USD1.15 billion in CAPEX last year, the firm is upping its investment this year and has recently inked RAN equipment deals with Ericsson, Huawei Technologies and Nokia Siemens Networks, having already awarded 2G and 3G core network expansion contracts to Ericsson and Nokia Siemens in 2008.

Telkomsel reported a 4% fall in first-quarter revenues to USD891 million, largely due to the impact of currency exchange rates on its international interconnect revenues. Net profit in the first three months of this year declined 29% year-on-year to USD248 million.