Indosat considering USD1.4bn tower sale

13 Oct 2010

Indonesia’s second largest mobile operator by subscribers PT Indosat is reportedly mulling a plan to sell up to 14,000 telecom towers for around USD1.4 billion, according to three unnamed sources who claim to have knowledge of the situation. The sell-off could take place within the coming months the sources say, although when questioned, Indosat director Fadzri Sentosa said: We’re still evaluating the options, we could sell it or retain it. Nothing is definite yet on the sale plan. It may be decided this year or next year.’ Sentosa went on to say that the operator has appointed Citigroup as a strategic advisor on its tower assets. At the end of June 2010 Indosat’s network infrastructure comprised 17,372 base transceiver station (BTS) towers. It is likely the cellco will look to use the proceeds of any sale to pay down debt and provide for the future expansion of its core business.

Indonesia, Indosat Ooredoo (incl. IM2)