Telkomsel to invest USD1.1bn in mobile broadband expansion

27 Apr 2011

According to The Jakarta Post Indonesia’s largest mobile operator by subscribers, PT Telekomunikasi Sellular (Telkomsel) is investing approximately USD1.1 billion in 2011 to develop its broadband service capabilities. At a ceremony to mark the signing up of its 100 millionth subscriber, Telkomsel president director Sarwoto Atmosutarno said: ‘We are targeting to reach around 115 million subscribers and to increase our market share to 50%’. In order to reach this goal Telkomsel is expanding its mobile broadband infrastructure, including deploying more transmission and base transceiver stations (BTS), expanding network capacity and improving its IT system. Sarwoto notes that the cellco’s data business has huge potential for growth, but concedes that at present, it is still no match for revenue derived from voice/SMS which currently makes up around 70% of total turnover. ‘The contribution from the data business has reached 14% [in the first quarter of 2011] compared to 7% in 2010,’ he added.

Telkomsel’s network comprises more than 38,000 BTS towers nationwide, of which more than 8,300 support 3G technology. Going forward the operator intends to further expand its mobile broadband infrastructure in 40 major cities by erecting additional BTS towers. The cellco, the mobile arm of PT Telekomunikasi Indonesia (Telkom), also plans to conduct trials on next generation Long Term Evolution (LTE) networks subject to it receiving the necessary ‘government regulation’, Sarwoto said.