Bakrie sees wireless broadband as way to tap into growing youth market

7 May 2010

Indonesia’s PT Bakrie Telecom is looking to enter the country’s wireless broadband business in 3Q10 to tap into growing demand from the nation’s younger consumers. To help achieve this, it will use the proceeds from an April bond sale to fund the expansion. Bloomberg quotes Bakrie’s head of strategic initiatives Amit Bose as saying that: Indonesia is a young country with 50% of the population below 35.’ He notes that young people are keen to use the types of data services and applications available via mobile broadband but argues that currently, they are being starved due to the poor state of the nation’s infrastructure and internet service quality. Bakrie Telecom issued USD250 million worth of bonds on 30 April 2010, with coupons priced to yield 11.5%. Bose declined to comment on the results of the sale. The operator ended 2009 with 10.5 million mobile users and sees the nascent mobile internet segment as ‘an open playing field.’

Indonesia, Bakrie Telecom (BTel)